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This guide outlines the Deforestation and Conversion-Free (DCF) Sourcing Criteria developed by the Climate Bonds Initiative to certify agri-food entities that source commodities from areas free of deforestation and natural ecosystem conversion. The criteria aim to align global financial markets with the 1.5°C goal of the Paris Agreement by providing a science-based certification process for traders, processors, and manufacturers.

This discussion paper by the Climate Bonds Initiative proposes a framework for credible transition finance in the agri-food sector. It argues that current transition instruments, such as Sustainability-Linked Bonds (SLBs), often lack ambition and fail to account for scope 3 emissions. To address this, the paper applies five 'Credible Transition Principles' and five 'Hallmarks' for transforming companies to ensure alignment with 1.5°C climate targets, science-based pathways, and broader sustainability goals including biodiversity and just transition.