By Blake Jackson
Development banks and funds designed to foster sustainable economic growth have invested billions into poultry and livestock operations, particularly in lower-income countries. A recent analysis by the non-profit Stop Financing Factory Farming revealed that 15 development banks and a major fund spent over $3 billion in 2023 on animal agriculture. Alarmingly, over three-quarters of these projects were categorized as large-scale factory farms. Another $3.4 billion came from additional public and private sources.
Factory farming contributes 11 to 20 percent of global greenhouse gas emissions and creates issues like water pollution, health risks, and poor animal welfare. The analysis used data from the Early Warning System, a database tracking funding activities.
Despite climate commitments, many development banks invest heavily in industrial livestock systems. For example, the World Bank Group has pledged to align with the Paris Agreement but continues funding large-scale animal farming. The International Finance Corporation (IFC), a World Bank member, allocated $501 million to such projects in 2023, including a $47 million loan for a multi-story pig farm. The IFC argued that livestock farming supports nutrition and livelihoods in low-income nations, but critics highlight its environmental and health risks.
Poultry and livestock projects are often promoted as a sustainable alternative to higher-emission meat like beef. Development banks like the European Investment Bank (EIB) have emphasized pork and poultry farms as climate-friendly investments, citing their comparatively lower emissions. However, critics argue that shifting to poultry or pork doesn’t resolve broader issues such as animal welfare, pandemic risks, or local environmental harm.
In some cases, investments may worsen conditions for vulnerable communities. For instance, a large-scale cattle project in Mongolia drew criticism for its potential to harm the local environment, increase pesticide use, and contribute to methane emissions.
Stop Financing Factory Farming urges development banks to redirect investments toward sustainable farming practices that prioritize community well-being and environmental health. They propose funding initiatives that promote plant-based solutions and support small-scale, community-focused farming systems.
This shift could align investments with climate goals while improving health, food security, and environmental outcomes globally.
Photo Credit: gettyimages-branex
Categories: Kentucky, Livestock, Poultry