THE SOCIO-CLIMATE BENEFITS FUND INSTRUMENT ANALYSIS

The Socio-Climate Benefits Fund (SCBF) is a proposed investment vehicle designed to combat small-scale deforestation in the Brazilian Amazon. It operates by funding a 'New Company' that provides upfront capital, technical training, and market access to smallholders who implement sustainable agroforestry systems (SAFs) on their land. The model utilizes a vertical integration approach, similar to poultry or swine supply chains, where the New Company and smallholders co-own the harvest. The initial pilot targets the state of Acre, aiming to restore 12,000 hectares of forest and engage up to 3,000 properties over a decade. The fund seeks a mix of grants, concessional debt, and equity to overcome barriers such as lack of long-term finance and market access for small-scale farmers.

• The SCBF aims to address small-scale deforestation in the Amazon, specifically targeting areas less than 50 hectares which are often poorly managed and difficult for authorities to monitor via satellite.
• The instrument uses a vertical integration business model, adapted from the poultry and swine sectors, to create a supply chain for agroforestry products, providing smallholders with technical assistance and collective market access.
• The proposed agroforestry system in Acre combines three main crops—cocoa, coffee, and acai—with support crops of bananas and rubber trees to ensure cash-flow stability and carbon sequestration.
• The financial model for the initial 500 properties through 2023 requires an estimated R$ 71 million (US$ 17.75 million), structured as 30% equity and 70% debt, including an initial US$ 1.5 million grant.
• The instrument is projected to significantly increase carbon storage, potentially increasing it tenfold from an average of 9.7-22.2 tons of CO2 per hectare to approximately 220 tons of CO2 per hectare over 20 years.
• Implementing the agroforestry model is estimated to increase smallholder income by 58% if one hectare is used, and by 234% if the proposed four hectares per property are implemented.
• The long-term goal is to bring up to 3,000 properties and 300,000 hectares of land into compliance with the Brazilian Native Vegetation Protection Law, restoring 12,000 hectares of forest.

APA

Climate Policy Initiative (2018). THE SOCIO-CLIMATE BENEFITS FUND INSTRUMENT ANALYSIS. https://www.climatepolicyinitiative.org/wp-content/uploads/2018/10/Socio-Climate-Benefits-Fund_Instrument-Analysis-1.pdf

Chicago

Climate Policy Initiative. THE SOCIO-CLIMATE BENEFITS FUND INSTRUMENT ANALYSIS. 2018. https://www.climatepolicyinitiative.org/wp-content/uploads/2018/10/Socio-Climate-Benefits-Fund_Instrument-Analysis-1.pdf.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=THE SOCIO-CLIMATE BENEFITS FUND INSTRUMENT ANALYSIS |date=September 2018 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2018/10/Socio-Climate-Benefits-Fund_Instrument-Analysis-1.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2018socioclimate, author = {{Climate Policy Initiative}}, title = {{THE SOCIO-CLIMATE BENEFITS FUND INSTRUMENT ANALYSIS}}, institution = {Climate Policy Initiative}, year = {2018}, month = sep, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2018/10/Socio-Climate-Benefits-Fund_Instrument-Analysis-1.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }