THE CASE FOR FINANCING SUSTAINABLE AGRIFOOD SYSTEMS IN LAC

The report highlights that agrifood systems in Latin America and the Caribbean (LAC) are major emission sources but receive only 8% of climate finance. It proposes blended finance as a mechanism to mitigate risks—such as lack of credit history and misaligned investment terms—to unlock private capital. The text notes that 59 blended finance transactions totaling $7 billion have occurred in the region, primarily in Brazil and Colombia, with a significant focus on agroforestry.

• Agriculture and land use in Latin America and the Caribbean (LAC) are primary drivers of environmental degradation and emissions, accounting for over 55% of the region's greenhouse gas emissions, 70% of freshwater consumption, and 70% of habitat conversion.
• Despite their economic and environmental significance, agrifood systems in LAC are severely underfunded, receiving only 8% of climate finance flows.
• The transition to sustainable agrifood systems in emerging markets is hindered by several barriers, including high perceived risk due to missing collaterals and credit histories, mismatches in investment scale and terms, and a conflict between short-term visions and long-term sustainability goals.
• Blended finance has been deployed in LAC through 59 transactions totaling $7 billion, with a heavy concentration in Brazil (17 transactions) and Colombia (13). Agroforestry is a major sub-sector, representing 20 transactions and $3.5 billion of that total.
• Effective sustainable agricultural investment requires a deep understanding of local contexts, value chain mapping, and the use of de-risking tools—such as guarantees, off-take agreements, and foreign exchange hedging—combined with capacity building.

APA

Climate Policy Initiative (2025). THE CASE FOR FINANCING SUSTAINABLE AGRIFOOD SYSTEMS IN LAC. https://www.climatepolicyinitiative.org/publication/blended-climate-finance-for-sustainable-agrifood-systems-latin-america-the-caribbean-lac/

Chicago

Climate Policy Initiative. THE CASE FOR FINANCING SUSTAINABLE AGRIFOOD SYSTEMS IN LAC. 2025. https://www.climatepolicyinitiative.org/publication/blended-climate-finance-for-sustainable-agrifood-systems-latin-america-the-caribbean-lac/.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=THE CASE FOR FINANCING SUSTAINABLE AGRIFOOD SYSTEMS IN LAC |date=17 April 2025 |url=https://www.climatepolicyinitiative.org/publication/blended-climate-finance-for-sustainable-agrifood-systems-latin-america-the-caribbean-lac/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2025case, author = {{Climate Policy Initiative}}, title = {{THE CASE FOR FINANCING SUSTAINABLE AGRIFOOD SYSTEMS IN LAC}}, institution = {Climate Policy Initiative}, year = {2025}, month = apr, url = {https://www.climatepolicyinitiative.org/publication/blended-climate-finance-for-sustainable-agrifood-systems-latin-america-the-caribbean-lac/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }