Description financing model: Multi-Stakeholder Platform
More coordination is needed across the value chain to align farmers, food & agri corporates, retailers, financial institutions and catalytic funders.
Multi-stakeholder platforms enable this by i) Curating a portfolio of initiatives that support farmers in driving change at scale; ii) Crowding in diverse sources of capital across commercial, concessionary, and catalytic sources; iii) Aggregating key actors across the system to fill key capabilities (e.g., MRV , technical assistance, financial actors, food & agri corporate actors)
Applicability: Applicable to a diverse set of local initiatives, provided they align with signatories’ goals. It is well-suited for farmer financing in emerging markets, where accessing recipients remains most challenging
Considerations: Success is supported by a strong, scalable network of financiers (incl. commercial and catalytic) and on-the-ground initiatives, as well as a diverse set of financing mechanisms tailored to different needs
Description of de-risking tool(s):
N/A
Case study description:
IFACC is an initiative of the UNEP, TFA and The Nature Conservancy, that foster lending and investment for deforestation/conversion-free beef and soy (and increasingly other commodities) in Brazil, Argentina and Paraguay
- IFACC defines appropriate indicators, connect catalytic capital providers with signatories, provides training, facilitates stakeholder involvement and participates in events (e.g., UN COPs, LCAW, NYCW, Davos)
- Signatories include banks, asset managers, catalytic funds, securitization companies, value chain players and facilities and operators
- These signatories collaborate on financial products tailored to specific region & solution, and they actively establish partnerships – incl. with non-signatories – to drive these initiatives forward
Currently 17 financial products; $499M cumulative disbursements (Dec 2024); 24 signatories