Hoja de ruta para la financiación climática de la ganadería en América Latina y el Caribe

The report identifies a massive funding gap for sustainable livestock in Latin America and the Caribbean, where the sector is responsible for approximately 28% of regional emissions but receives minimal climate investment. It analyzes investment risks—including governance instability, physical climate threats like El Niño, and macroeconomic volatility—and evaluates the suitability of various public and private investors. The document proposes three scenarios: Business-as-Usual, Improved Finance Strategies (IFS), and Improved Finance and Policy Strategies (IFPS), arguing that a combination of blended finance, risk-reduction tools, and institutional reforms is necessary to transition from a heavy reliance on public funding to a diversified capital base. Specific recommendations include implementing first-loss capital, long-term loans, and natural capital accounting to unlock investment in practices such as silvopasture and sustainable feed production.

• There is a severe global and regional funding deficit for sustainable livestock systems; globally, less than USD 240 million is directed to these systems against a deficit of USD 181 billion, while in Latin America and the Caribbean, annual flows averaged only USD 100 million in 2021/2022.
• Livestock systems in Latin America and the Caribbean are a major source of emissions, accounting for approximately 28% of the region's total emissions, with 53% coming from enteric fermentation, manure management, and soil degradation, and 47% from land-use change.
• Public investors are currently the most suitable for climate investments in the region due to higher risk tolerance, whereas private investors are deterred by high governance risks, small project sizes, and low expected returns, particularly for small-scale farms.
• Specific regional risks hinder investment, including the increased frequency of El Niño-intensified physical climate risks, high governance risks due to inconsistent land tenure and policy changes, and macroeconomic instability, such as the significant devaluation of the Argentine peso between 2018 and 2020.
• Geopolitical tensions and trade regulations pose market risks, specifically for Mexico, which exports approximately 89% of its agricultural products to the United States and faces potential competitiveness losses from US tariffs.
• The report proposes that 'Improved Finance and Policy Strategies' (IFPS) can shift the capital composition toward more private investment; for example, in small-scale farming in Brazil, the private share could increase from 25-35% in a BAU scenario to 45-55% under IFPS.
• Blended finance tools, such as first-loss capital and credit guarantees, are essential to reduce risks for private investors, while long-term capital with repayment periods of 5 to 10 years is needed to align with the biological and financial cycles of sustainable practices like silvopasture.
• Policy interventions such as incorporating natural capital accounting into national planning and implementing standardized climate reporting are recommended to reduce information asymmetries and improve investment comparability.
• Technical assistance is identified as a critical risk-mitigation tool, as financial capital alone is insufficient to overcome the behavioral and technical barriers farmers face when adopting climate-smart practices.

APA

Kirchherr, A., Alberti, C., Barron, M., Bansal, S., Sikka, A., & Strinati, C. (2025). Hoja de ruta para la financiación climática de la ganadería en América Latina y el Caribe. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2025/10/Hoja-de-ruta-para-la-financiacion-de-la-ganaderia-en-America-Latina-y-el-Caribe.pdf

Chicago

Kirchherr, Alexandre, Caroline Alberti, Mairéad Barron, Shreya Bansal, Aanandita Sikka, and Costanza Strinati. Hoja de ruta para la financiación climática de la ganadería en América Latina y el Caribe. Climate Policy Initiative, 2025. https://www.climatepolicyinitiative.org/wp-content/uploads/2025/10/Hoja-de-ruta-para-la-financiacion-de-la-ganaderia-en-America-Latina-y-el-Caribe.pdf.

Wikipedia

{{cite report |last1=Kirchherr |first1=Alexandre |last2=Alberti |first2=Caroline |last3=Barron |first3=Mairéad |last4=Bansal |first4=Shreya |last5=Sikka |first5=Aanandita |last6=Strinati |first6=Costanza |title=Hoja de ruta para la financiación climática de la ganadería en América Latina y el Caribe |publisher=Climate Policy Initiative |date=October 2025 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2025/10/Hoja-de-ruta-para-la-financiacion-de-la-ganaderia-en-America-Latina-y-el-Caribe.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{kirchherr2025hoja, author = {Kirchherr, Alexandre and Alberti, Caroline and Barron, Mairéad and Bansal, Shreya and Sikka, Aanandita and Strinati, Costanza}, title = {{Hoja de ruta para la financiación climática de la ganadería en América Latina y el Caribe}}, institution = {Climate Policy Initiative}, year = {2025}, month = oct, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2025/10/Hoja-de-ruta-para-la-financiacion-de-la-ganaderia-en-America-Latina-y-el-Caribe.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }