Climate Finance Roadmap For Livestock in Latin America and the Caribbean Annexes

This document contains the technical annexes for the Climate Finance Roadmap for Livestock in Latin America and the Caribbean. It details the methodology for scoring investment risks (governance, financing, physical climate, market, infrastructure, and nature) and investment attributes (horizon, ticket size, and return) across different farm sizes. It also outlines the modeling for three financial scenarios—Business-as-Usual, Improved Finance Strategies, and Improved Finance and Policy Strategies—to estimate the potential shift from public to private capital. Additionally, it provides a breakdown of farmer characteristics in Brazil, Argentina, and Mexico, and notes a significant gap in tracked private climate finance flows in the region.

• The methodology for assessing investment risks in the LAC livestock sector utilizes six risk categories: governance, financing, physical climate, market, infrastructure, and nature. These are quantified using a quartile approach where countries are assigned a score from 1 (Very low) to 4 (High) based on percentile ranges.
• Investment attributes for the livestock sector are differentiated by farm size. Large-scale commercial farms typically have an investment horizon of 5-10 years, average ticket sizes of USD 5-10 million, and expected returns of 15-25%. In contrast, smallholder farms have longer horizons of 10-15 years, smaller ticket sizes of USD 0-1 million, and lower expected returns of 5-15%.
• The document identifies a significant underestimation of climate finance flows in the LAC livestock sector. A comparison of data for Brazil showed that a national-level analysis revealed 120 times more private finance and 2.5 times more public finance than the Global Landscape of Climate Finance (GLCF) dataset, largely due to Brazil's Rural Credit policy.
• In the Business-as-Usual (BAU) scenario, public finance is the dominant source of capital for small farms across the region. For example, the midpoint for public finance for small farms in Argentina, Mexico, and the rest of LAC is 93%, with private finance at only 8%.
• The report models two improvement scenarios: Improved Finance Strategies (IFS) and Improved Finance and Policy Strategies (IFPS). The IFPS scenario assumes the lowest share of public finance because it incorporates both financial and policy incentives to improve the enabling environment and crowd in private investment.
• Farm characteristics vary significantly by country. In Brazil, family farms represent 85% of all farms and produce over two-thirds of the country's food, despite occupying only one-quarter of agricultural land. In Argentina, large-scale farms make up only 0.3% of all farmers but occupy more than three-quarters of total farm land.

APA

Climate Policy Initiative (2025). Climate Finance Roadmap For Livestock in Latin America and the Caribbean Annexes. https://www.climatepolicyinitiative.org/wp-content/uploads/2025/07/CLIC_LAC_AFS_Roadmap_Annexes_Final.pdf

Chicago

Climate Policy Initiative. Climate Finance Roadmap For Livestock in Latin America and the Caribbean Annexes. 2025. https://www.climatepolicyinitiative.org/wp-content/uploads/2025/07/CLIC_LAC_AFS_Roadmap_Annexes_Final.pdf.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=Climate Finance Roadmap For Livestock in Latin America and the Caribbean Annexes |date=July 2025 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2025/07/CLIC_LAC_AFS_Roadmap_Annexes_Final.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2025climate, author = {{Climate Policy Initiative}}, title = {{Climate Finance Roadmap For Livestock in Latin America and the Caribbean Annexes}}, institution = {Climate Policy Initiative}, year = {2025}, month = jul, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2025/07/CLIC_LAC_AFS_Roadmap_Annexes_Final.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }