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

The report identifies a severe underfunding of sustainable livestock systems in Latin America and the Caribbean (LAC), where livestock accounts for approximately 28% of regional greenhouse gas emissions. It highlights a significant financing gap, estimating that annual flows need to increase up to 255 times to enable a transition. The analysis reveals that public investors are currently the most suitable for the sector due to higher risk tolerance, while private investment is hindered by governance risks, macroeconomic instability, and a mismatch between project scales and investor preferences. The document proposes three scenarios—Business-as-Usual, Improved Finance Strategies (IFS), and Improved Finance and Policy Strategies (IFPS)—to demonstrate how blended finance, risk-reduction tools, and regulatory reforms can attract private capital, particularly for large-scale farms in Brazil and Mexico.

• There is a massive global and regional financing gap for sustainable livestock; globally, less than US$ 240 million is allocated, leaving a gap of US$ 181 billion, while in Latin America and the Caribbean (LAC), annual flows of US$ 100 million in 2021/22 fall short of needs by US$ 23.2-25.2 billion.
• Livestock systems in LAC are a primary driver of emissions, accounting for approximately 28% of total regional greenhouse gas emissions, with 53% coming from enteric fermentation, manure management, and land degradation, and 47% from land-use conversion.
• Public investors are currently the most suitable for climate investments in LAC livestock due to their higher risk tolerance and development focus, whereas private investors are deterred by high governance risks, physical climate risks, and macroeconomic instability.
• Specific regional risks include severe macroeconomic volatility in Argentina, where the peso lost two-thirds of its value between 2018 and early 2020, and geopolitical trade risks in Mexico, which exports approximately 89% of its agricultural products to the US.
• Small-scale farms face structural barriers including a lack of collateral and high bank risk aversion, making them almost entirely dependent on public funding across all analyzed markets.
• Blended finance strategies, such as first-loss capital and credit guarantees, can improve risk-return profiles to attract private capital, particularly for large-scale farms in Brazil and Argentina.
• The 'Improved Finance and Policy Strategies' (IFPS) scenario suggests that combining financial tools with public policy reforms—such as natural capital accounting and digital infrastructure—can maximize investor alignment and diversify the capital mix.
• Nature-based solutions (NbS), such as silvopastoral systems, are critical for the transition but are often poorly aligned with conventional financial instruments due to long return horizons (5-10 years).

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} }