Growing Returns

Selected tag(s): agricultural finance

Fostering innovative finance in the agriculture value chain

Companies throughout the agriculture value chain have set commitments to reduce the environmental impacts of agricultural production. They’re now engaged in the hard work to achieve those goals by developing programs to increase farmer adoption of conservation practices.

As value chain sustainability programs mature, there is increasing attention on the financial barriers to the implementation of sustainable agriculture at scale — and questions about how financial innovation can overcome those barriers.

A recently released report, Financial Innovations to Accelerate Sustainable Agriculture: Blueprints for the Value Chain, provides companies throughout the food and agriculture sector with 12 tangible innovative finance mechanisms and value-added incentive strategies to support U.S. farmers in scaling conservation practices and delivering sustainable outcomes. The blueprints encompass innovations for transition risk sharing, pay for performance, leasing incentives and more.

Here are three key insights for those looking to take action. Read More »

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Banks take major step to turn climate commitments into action for global agriculture sector

Today at COP26, the World Business Council for Sustainable Development announced the Banking for Impact on Climate in Agriculture (B4ICA) initiative in partnership with EDF, the United Nations Environment Programme Finance Initiative and the Partnership for Carbon Accounting Financials.

Banks representing over 40% of global banking assets have already committed to aligning their portfolios with net zero emissions by 2050.

A major theme of this COP — the international climate change conference — is the urgent need to transition from commitments to action.

Action is needed to protect the agriculture sector from climate change, as farmers around the world are exposed to increasingly volatile weather that threatens global food security and rural livelihoods. At the same time, the sector must reduce its own greenhouse gas emissions, particularly potent methane and nitrous oxide emissions.

Fortunately, farms have the potential to reduce emissions, sequester carbon and build resilience — but farmers need support to make change at the scale and pace required to avoid major losses. Read More »

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