Socio-Climate Benefits Fund

The Socio-Climate Benefits Fund (SCBF), proposed by Kaeté Investimentos, is a financial instrument designed to reverse small-scale deforestation in the Brazilian Amazon by incentivizing the adoption of agroforestry systems among smallholders through long-term investment and training.

• The Socio-Climate Benefits Fund aims to address the growth of small-scale deforestation (areas under 50 hectares) in the Brazilian Amazon, supporting Brazil's pledge to restore 22 million hectares of degraded land, including 5.6 million hectares belonging to rural smallholders.
• The instrument operates via an investment vehicle that establishes a company to enter into Rural Partnership Agreements with smallholders. This company provides upfront investment, inputs, logistics, and training in agroforestry, while the smallholder retains between 20% and 30% of the harvest.
• The SCBF targets significant socio-economic and environmental impacts, including increasing smallholder income by at least 58% for 1 hectare of implementation (and 234% for 4 hectares) and storing at least ten times more carbon over 20 years compared to current vegetation in degraded pastures.
• The funding structure for the instrument includes a $1.5 million grant for company incorporation and initial projects, a $5.0 million commercial investment to prove the business concept, and two tranches of patient capital (First Loss Equity and Concessional Debt) each valued at $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} }