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Expanding pathways for green finance to support regenerative agriculture in Latin America

Published Article

Latin America

Publication date: January 2, 2023

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This study examines how green finance instruments—credit facilities, carbon markets, PES schemes, and biodiversity investment vehicles—are expanding support for regenerative agriculture in Latin America. It highlights opportunities, persistent funding gaps, and the role of green recovery strategies in climate resilience and sustainable land use.

Subject Tags

  • Carbon markets
  • Climate resilience

Abstract

This chapter explores the current state of green finance initiatives and emerging financing instruments for regenerative agriculture in Latin America. We conduct a review of existing journal articles, online platforms, and grey literature, and interview ten key informants from different organizations who are actively engaged with conservation agriculture in the region. We find that a panoply of credit facilities, emerging voluntary and compliance carbon markets, payment for environmental services mechanisms, debt conversions, and green climate and biodiversity investment vehicles are coming on stream for including environmental objectives in the agriculture and land-use sector. We explore the challenges and opportunities for the success of these financing vehicles, illustrating their potential for financing regenerative agriculture and surfacing the gaps in existing funding mechanisms. Finally, we examine the potential for regenerative agriculture to be integrated into Covid recovery packages, to mitigate and adapt to climate change as part of a green recovery in Latin America.

Citation

Gammage, S., Rode, J., & Palacio, F. L. (2023). Expanding pathways for green finance to support regenerative agriculture in Latin America. In Sustainable Finance and the Global Health Crisis (pp. 214-240). Routledge.

https://doi.org/10.4324/9781003284703-13

TNC Authors