Responsible Commodities Facility

The Responsible Commodities Facility (RCF) is a financial instrument designed to reduce deforestation in the Brazilian Cerrado by providing low-cost loans to soy and corn producers who utilize previously cleared and degraded lands rather than expanding into native vegetation.

• The RCF aims to redirect agricultural production to an estimated 40 million hectares of previously cleared and degraded pasture lands in the Cerrado to mitigate the deforestation driven by global soy demand.
• The facility intends to provide low-cost loans to 600 farms, with a total lending target exceeding US$ 3 billion over a 10-year period. This is expected to result in over US$ 20 billion worth of soy and corn produced without further deforestation or conversion of the Cerrado.
• The RCF targets the restoration of 1.2 million hectares of degraded lands, which is projected to avoid and sequester up to 55 million tonnes of carbon emissions.
• Financing for the RCF will be sourced through investment grade-rated green bonds targeting institutional investors, with an initial US$ 300 million bond expected by early 2019. The facility will offer producers revolving one-year credit lines for cultivation and loans up to six years for land restoration, on-farm infrastructure, and compliance with the Brazilian Forest Code.
• To ensure transparency and sustainability, the RCF will utilize a dedicated selling platform linked to a blockchain registry, alongside traceability systems and an Environmental Committee comprising producers, buyers, local NGOs, and financial partners.

APA

Climate Policy Initiative (2018). Responsible Commodities Facility. https://www.climatepolicyinitiative.org/wp-content/uploads/2020/07/Responsible-Commodities-Facility_Instrument-Overview.pdf

Chicago

Climate Policy Initiative. Responsible Commodities Facility. 2018. https://www.climatepolicyinitiative.org/wp-content/uploads/2020/07/Responsible-Commodities-Facility_Instrument-Overview.pdf.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=Responsible Commodities Facility |date=2018 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2020/07/Responsible-Commodities-Facility_Instrument-Overview.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2018responsible, author = {{Climate Policy Initiative}}, title = {{Responsible Commodities Facility}}, institution = {Climate Policy Initiative}, year = {2018}, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2020/07/Responsible-Commodities-Facility_Instrument-Overview.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }