mobilizing capital to scale responsible expansion of crop livestock in brazil

16 There is a relevant capital need with initial tractionThe agenda can become self-sustaining in the private capital market Today Attracts…so that in the long term To unlock the transition1 1. Finance for a Forest-Positive Future, 2022 – IFACC Report.Catalytic capital with favorable interest rate plays a crucial role: • Build track record & credibility • Engage & prepare key value chain actors • Ensure scalabilityUSD 2 billion Catalytic capital USD 4 to USD 8 billion Private investorsBy 2030, there is a need for: USD 120 B 5. Catalytic capital will be crucial to build a track record and unlock private financing Key messages A B C D Blended finance emerges as a strategic solution, with catalytic capital being key to unlocking private finance at scaleThis agenda requires patient capital for long tenors up to 10 years with extended grace periodsCatalytic capital will help establish a track record for innovative financial mechanisms scalable on a private basis, with tremendous impact potentially unlocking the needed USD 120BDFIs play a crucial role in providing this catalytic capital and may share part of the risk by adapting their models to suit the local reality New financial solutions are required to address new challenges The complexity of local agricultural landscape creates intricate risk profiles. The unique characteristics of commercial relationships, combined with limited established track records for financing the recovery of degraded pastures, make scaling investment volumes challenging.