Socio-Climate Benefits Fund

The Socio-Climate Benefits Fund (SCBF) is designed to combat small-scale deforestation in the Brazilian Amazon by providing long-term investment and technical training to smallholders for the implementation of agroforestry systems. The instrument operates through an investment vehicle that establishes a company to manage Rural Partnership Agreements, providing upfront capital and inputs in exchange for a share of the harvest. The fund aims to increase smallholder income by at least 58% for 1-hectare implementations and 234% for 4-hectare expansions, while storing ten times more carbon than current degraded pasture vegetation over 20 years. The financial structure requires a total of $13.1 million, comprising a $1.5 million grant, $5 million in commercial equity, and $6.6 million in concessional debt across first-loss and senior tranches.

• The Socio-Climate Benefits Fund addresses barriers to agroforestry adoption for smallholders in the Amazon by providing upfront investment through partnership agreements, offering immediate income and training, and developing markets for the resulting production.
• The instrument targets significant environmental and economic impacts, specifically aiming to store at least ten times more carbon over 20 years than existing degraded pastures and to increase smallholder income by 58% for 1-hectare projects and 234% for 4-hectare projects.
• The operational model involves a company that selects eligible smallholders, enters into Rural Partnership Agreements, provides all inputs and logistics, and retains 70% to 80% of the harvest, leaving 20% to 30% for the smallholder.
• The fund's financial requirements include $1.5 million in grants for incorporation and technical assistance, $5 million in commercial equity to prove the business concept, and $11.6 million in concessional debt split between first-loss equity ($5.8 million) and senior/mezzanine tranches ($5.8 million).

APA

Climate Policy Initiative (2018). Socio-Climate Benefits Fund. https://www.climatepolicyinitiative.org/wp-content/uploads/2020/07/Caaporã-The-Socio-Climate-Benefits-Fund_Instrument-Overview.pdf

Chicago

Climate Policy Initiative. Socio-Climate Benefits Fund. 2018. https://www.climatepolicyinitiative.org/wp-content/uploads/2020/07/Caaporã-The-Socio-Climate-Benefits-Fund_Instrument-Overview.pdf.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=Socio-Climate Benefits Fund |date=2018 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2020/07/Caaporã-The-Socio-Climate-Benefits-Fund_Instrument-Overview.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2018socioclimate, author = {{Climate Policy Initiative}}, title = {{Socio-Climate Benefits Fund}}, institution = {Climate Policy Initiative}, year = {2018}, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2020/07/Caaporã-The-Socio-Climate-Benefits-Fund_Instrument-Overview.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }