This paper focuses on the opportunities for meeting energy and water demands in the agrifood sector with off-grid and decentralized energy systems and on the co-benefits of these systems for stakeholders across the sector. It has been prepared in response to a request of the Conference of the Parties and on the basis of a review of the literature and discussions that took place during the technical expert meetings held in 2019 under the technical examination process on mitigation.

Renewable energy and energy-efficient technologies suitable for application in the agrifood sector are mature and the cost of their installation are declining. Many examples exist, from small-scale solar power systems for off-grid family farms to large-scale combined heat and power plants for supplying mini grids. Technically viable and socially beneficial low-carbon technologies include wind- and solar-powered water pumps, solar water heaters, straw-fired crop drying heaters, biomass-fired heat and power plants, mini hydropower turbines, insulated cool stores, efficient greenhouse lighting systems, precision irrigation systems, biogas for heat or transport fuel, and solar photovoltaic milk coolers.

The transition by the agrifood sector to taking a circular economy approach to water and energy management and the careful management of ecosystem services under the water–energy–food nexus approach can help avoid environmental impacts, which are of growing concern. Government policies, measures and incentives should be developed to improve freshwater conservation and encourage the circular economy. Policies relating to nature-based solutions and ecosystem services that reduce the demand for energy and water inputs to the agrifood chain should be holistic, given that they involve many stakeholders who often have conflicting interests. Coherent policy development requires dialogue and close collaboration among ministries as well as between national and local authorities.

While there are many examples of the successful deployment of cost-effective energy-smart and climate-smart agrifood systems, these systems have not been widely promoted or deployed in many countries, and off-grid and decentralized energy is yet to become mainstream. The potential for replication and scaling up implementation is good, but will require education, capacity-building and national standards, as well as support for innovative business models that overcome the challenge of high upfront capital costs, where these are a constraint to uptake. A conducive policy environment, developed in consultation with the private sector, can help improve energy access and enable the agrifood sector to reduce its dependence on inputs of fossil fuels and fresh water.