INSTRUMENT ANALYSIS SEPTEMBER 2024 SPV FOR SILVOPASTURE SCALING

The SPV for Silvopasture Scaling aims to transition medium-sized Colombian cattle farms from conventional to sustainable practices by providing capital and technical assistance. It utilizes a profit-sharing model based on productivity gains and the sale of carbon credits to avoid the debt-aversion barriers typical of traditional loans. The instrument is structured into three facilities: SPS Implementation, Carbon Credit, and Technical Assistance. A pilot in El Cesar will test the model before potential scaling to other regions of Colombia and countries like Brazil and Mexico.

• The SPV addresses financial barriers for medium-sized ranchers by replacing traditional loans with profit-sharing agreements based on productivity gains, which aligns with the local 'cuentas en participación' scheme.
• The instrument is structured into three distinct facilities: an SPS Facility for on-farm implementation, a Carbon Credit Facility to aggregate and sell credits, and a Technical Assistance Facility funded by grants to provide five years of support.
• The total estimated cost of the vehicle is USD 97 million, with an initial funding requirement of USD 59 million and a planned reinvestment of USD 37 million from productivity gains.
• Financial projections estimate total revenues of USD 247 million, with productivity gains contributing USD 165 million (67%) and carbon credits contributing USD 82 million (33%), resulting in a projected IRR of 14%.
• The SPV targets 59,000 hectares in El Cesar, Colombia, and expects to avoid or reduce 1.2 MtCO2e through the implementation of silvopastoral systems.
• The project aims to improve rural resilience and productivity, citing evidence from the MSCR project where SPS led to a 25% increase in milk production, a 26% increase in animal load, and a 9% reduction in production costs.

APA

Climate Policy Initiative (2024). INSTRUMENT ANALYSIS SEPTEMBER 2024 SPV FOR SILVOPASTURE SCALING. https://www.climatepolicyinitiative.org/wp-content/uploads/2024/09/SPV-for-Silvopasture-Scaling_Instrument-Analysis.pdf

Chicago

Climate Policy Initiative. INSTRUMENT ANALYSIS SEPTEMBER 2024 SPV FOR SILVOPASTURE SCALING. 2024. https://www.climatepolicyinitiative.org/wp-content/uploads/2024/09/SPV-for-Silvopasture-Scaling_Instrument-Analysis.pdf.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=INSTRUMENT ANALYSIS SEPTEMBER 2024 SPV FOR SILVOPASTURE SCALING |date=September 2024 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2024/09/SPV-for-Silvopasture-Scaling_Instrument-Analysis.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2024instrument, author = {{Climate Policy Initiative}}, title = {{INSTRUMENT ANALYSIS SEPTEMBER 2024 SPV FOR SILVOPASTURE SCALING}}, institution = {Climate Policy Initiative}, year = {2024}, month = sep, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2024/09/SPV-for-Silvopasture-Scaling_Instrument-Analysis.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }