Agribusinesses at COP26 Commit to Invest $3B in Deforestation-Free Soy and Cattle Production
Eight agribusiness and financial groups, including &Green Fund, The Dutch Impact Fund, DuAgro, AGR13 Fund (managed by Rabobank), Gaia Group, JGP Asset Management, Syngenta, Sustainable Investment Management, and VERT, have signed onto a commitment worth $3 billion to invest in soybean and cattle production that is free of deforestation and land conversion in South America.
These signatories, which signed on at the COP26 World Leaders Summit, are the first to back the Innovative Finance for the Amazon, Cerrado, and Chaco (IFACC) initiative - as part of their plans to shift soy and cattle production in South America to a more sustainable model.
Disbursements totaling $200 million have been committed by 2022, however, the ultimate goal of the initiative is to reach $10 billion, with disbursements totaling $1 billion by 2025.
The IFACC was launched in November 2021 in Glasgow by The Nature Conservancy (TNC), Tropical Forest Alliance (TFA), and United Nations Environment Programme (UNEP) to work with signatories to scale up new finance mechanisms, including support for environmental and social management, and increased access to long-term, patient capital for transitions.