IFACC 2023 Market Report

IFACC 2023 MARKET REPORT FOREWORD “Agricultural transformation is only possible by giving long- term ‘livelihood security’ to farmers and on the other hand tackle deforestation and the climate crisis. This requires a united front of financial support and collective engagement. By fostering collaboration, we can catalyze positive change, ensure food security, and build resilient economies based on nature-positive business models”.“Private investments are pivotal in steering the just transition of the agricultural sector. With the rising global demand for food, it’s crucial to prioritize funding innovations for productive models that curb biodiversity loss and protect critical natural habitats while increasing production. This proactive approach not only safeguards the environment but also aligns with the growing market demand for sustainable agricultural products.”“Like renewable energy decades ago, scaling investment in the agriculture transition will require an injection of catalytic support from value chain companies, DFIs, and governments. $2 billion in flexible catalytic capital by 2030 would go a long way to driving the needed transition in the Amazon, Cerrado, and Chaco.”TABLE OF CONTENTS FOREWORD ......................................................................................................... 2 INTRODUCTION .................................................................................................. 4 2023 AT A GLANCE .............................................................................................. 6 IFACC IMPACT RESULTS ...................................................................................... 8 MOBILIZING FINANCE AT SCALE .................................................................... 10 IFACC-ALIGNED PRODUCTS 2022 AND 2023 .................................................. 12 IN ORDER OF LAUNCHING DATE 1. Syngenta, Itaú pasture recovery program (“Reverte”) in the Cerrado ......14 2. SIMFlor Program ............................................................................................. 16 3. AGRI3 Restoration of Degraded Pastureland loan ..................................... 18 4. &Green & FS - Corn ethanol loan .................................................................. 20 5. Responsible Commodities Facility – Cerrado Programme Fund .............. 22 6. AGRI3 & Rabobank – Locks Group sustainable agriculture lending ........24 7. JGP, Agrogalaxy and Vert - Green Galaxy .................................................... 26 8. AGRI3 & Rabobank - Renova Pasto .............................................................. 28 9. Conexsus, Belterra, Grupo Gaia and Santander Green CRA ...................... 30 10. Living Amazon Mechanism (“Mecanismo Amazônia Viva”) ...................... 32 11. FIDC Fiagro Belterra – Agroforestry Productive Restoration ................... 34 KNOWLEDGE PRODUCTS 2023 ........................................................................ 36 PREVIOUSLY LAUNCHED KNOWLEDGE PRODUCTS ...................................... 37© TNC IVO MULDER, HEAD OF THE CLIMATE FINANCE UNIT AT UNITED NATIONS ENVIRONMENT PROGRAMMEDANIELLE CARREIRA, HEAD OF FINANCE SECTOR ENGAGEMENT AT THE TROPICAL FOREST ALLIANCEGREG FISHBEIN, AGRICULTURE FINANCE DIRECTOR AT THE NATURE CONSERVANCY 3 IFACC 2023 MARKET REPORT