Agri-food systems are responsible for about 21% to 37% of global total GHG emissions but also face considerable climate risks, which make them a critical factor in both climate change mitigation and adaptation efforts. Aligning the climate transition of the agri-food system with the Sustainable Development Goals (SDGs) is crucial to ensure justice and inclusivity especially given its role as a major employer in rural areas. Amid the significant investment required, the sector faces multiple financing constraints, while China’s existing green and inclusive finance policies do not fully address these needs. Transition finance has a critical role to play in mobilising private capital to support a just and inclusive climate transition of China’s agri-food system, through the delivery of innovations in private equity, venture capital, insurance, carbon credit finance, blended finance, and supply chain finance. 
 
To address these challenges, the report recommends enhancing climate-related information disclosure by establishing GHG emission accounting standards and monitoring systems, guiding agri-food entities to develop credible transition plans, and creating policy incentives for the transition of agri-food supply chains. Macro and Green Finance Lab, National School of Development at Peking University, the Climate Bonds Initiative (CBI) and the United Nations Development Programme (UNDP) have contributed their expertise in climate finance and policy recommendations to support this critical effort.