Roteiro de Financiamento Climático Para a pecuária na América Latina e no Caribe

This report by the Climate Policy Initiative (CPI) provides a strategic roadmap to increase climate finance for livestock systems in Latin America and the Caribbean (LAC). It identifies a massive funding gap, analyzes investment barriers—particularly for smallholders—and proposes a combination of blended finance strategies and public policy reforms to attract private capital and transition the sector toward sustainable practices.

• There is a severe global and regional funding gap for sustainable livestock systems. Globally, the ClimateShot Investor Coalition (CLIC) estimates that less than US$ 240 million in climate finance is allocated to livestock, leaving a gap of US$ 181 billion. In Latin America and the Caribbean (LAC), annual climate finance flows for livestock were approximately US$ 100 million in 2021/22, while the funding gap is estimated between US$ 23.2 billion and US$ 25.2 billion.
• Livestock systems in LAC are major contributors to greenhouse gas (GHG) emissions but receive disproportionately low investment. Agriculture, forestry, and other land use (AFOLU) account for 54% of regional GHG emissions, with livestock responsible for approximately half of that (28% of total regional emissions). In Brazil, cattle ranching is linked to 72% of deforestation, and in Argentina and Paraguay, it accounts for 11%.
• Investment in sustainable livestock is hindered by six primary risk categories: governance, finance, physical climate, market, infrastructure, and nature. Governance risks include political instability and inconsistent land tenure. Physical climate risks are exacerbated by El Niño, causing heat stress and forage loss. Market risks include geopolitical tensions, such as Mexico's high dependence on the US market (approximately 89% of agricultural exports).
• There is a significant misalignment between the needs of livestock projects and the preferences of private investors. Private investors typically seek shorter return horizons and larger ticket sizes than those offered by small-scale livestock projects. Consequently, public investors (governments and Development Finance Institutions) are currently the most suitable for these investments due to higher risk tolerance and development mandates.
• The report proposes three scenarios to improve capital composition: Business-As-Usual (BAU), Improved Finance Strategies (IFS), and Improved Finance and Policy Strategies (IFPS). The IFPS scenario, which combines blended finance with regulatory reforms, is the only one capable of significantly increasing private sector participation, especially for smallholders, by reducing structural risks and providing regulatory clarity.
• Key financial solutions to unlock capital include the use of 'patient capital' (repayment terms of 5-10 years), first-loss capital to protect private investors, and value-chain anchored loans where repayments are deducted directly from buyer payments to producers.
• Essential policy interventions include integrating Natural Capital Accounting (NCA) into national planning, implementing standardized climate reporting, and expanding rural digital infrastructure to reduce transaction costs for remote producers.
• Sustainable livestock practices identified for investment include silvopastoral systems (integrating trees and shrubs in pastures), sustainable feed production to decouple from deforestation, and improved waste management (e.g., biogas collectors). Nature-based solutions are highlighted as fundamental for the climate transition.
• The upcoming COP 30 in Brazil is identified as a critical opportunity to elevate sustainable livestock systems on the regional climate agenda through new Nationally Determined Contributions (NDCs) and regional investment roadmaps.

APA

Kirchherr, A., Alberti, C., Barron, M., Bansal, S., Sikka, A., & Strinati, C. (2025). Roteiro de Financiamento Climático Para a pecuária na América Latina e no Caribe. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2025/10/Roteiro-de-Financiamento-Climatico-para-a-pecuaria-na-America-Latina-e-no-Caribe-1.pdf

Chicago

Kirchherr, Alexandre, Caroline Alberti, Mairéad Barron, Shreya Bansal, Aanandita Sikka, and Costanza Strinati. Roteiro de Financiamento Climático Para a pecuária na América Latina e no Caribe. Climate Policy Initiative, 2025. https://www.climatepolicyinitiative.org/wp-content/uploads/2025/10/Roteiro-de-Financiamento-Climatico-para-a-pecuaria-na-America-Latina-e-no-Caribe-1.pdf.

Wikipedia

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BibTeX

@techreport{kirchherr2025roteiro, author = {Kirchherr, Alexandre and Alberti, Caroline and Barron, Mairéad and Bansal, Shreya and Sikka, Aanandita and Strinati, Costanza}, title = {{Roteiro de Financiamento Climático Para a pecuária na América Latina e no Caribe}}, institution = {Climate Policy Initiative}, year = {2025}, month = oct, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2025/10/Roteiro-de-Financiamento-Climatico-para-a-pecuaria-na-America-Latina-e-no-Caribe-1.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }