Financing the transition to regenerative agriculture in the EU

Clarmondial AG, commissioned by the MAVA Foundation, Männedorf, Switzerland, 2022.

European agriculture is central to meeting multiple objectives, including food security, biodiversity conservation, climate mitigation and adaptation, and rural livelihoods. The sector is receiving increased public and private sector attention, including in the context of the EU Green Deal, revised Common Agricultural Policy and carbon farming. However, current public funding allocations and modalities are unlikely to deliver the ambitious transformation targets – private resources, from farmers, companies and investors, must be mobilised. This report describes some of the challenges and opportunities for financing regenerative agriculture in the EU, the opportunities for blended and results based financing structures, and potential modalities for private sector support to be mobilized, including for climate, biodiversity, soil, and water health.

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Mobilizing additional financial resources for nutrition

Clarmondial AG, commissioned by the Swiss Development Corporation, Männedorf, Switzerland, 2020.

This document was produced by Clarmondial based on seven questions posed by the Swiss Development Corporation (SDC) on how to mobilize additional financial resources for nutrition. It focuses primarily on the mobilization of additional finance from the private sector. The paper explains what “nutrition finance” is, where and by whom financing is needed for nutrition, how additional financing can be mobilized, how these can be accessed by countries, and the potential entry points, models and stakeholders to engage.

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Marine Stewardship Council
Guidance for Investors

Clarmondial AG, commissioned by the Marine Stewardship Council, London, United Kingdom, 2020.

The Marine Stewardship Council (MSC) provides more than a trusted label for consumers to identify sustainable seafood options: it can also serve as a practical tool for investors. This report explores how the MSC program and tools could be used to support private and public financial institutions that are considering sustainability in their investment decisions in the seafood sector.

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Blended finance for agriculture: exploring the constraints and possibilities of combining financial instruments for sustainable transitions

Tanja Havemann, Dr Christine Negra, Fred Werneck
Agriculture and Human Values journal, 2020.

Transitioning to sustainable agricultural systems is imperative to meet the global Sustainable Development Goals (SDGs). Achieving more sustainable agricultural production systems will require significant additional capital, however this can- not be covered by the current financial market setup, which dissociates public and private funders. Blended finance, where concessionary development-oriented funding is used to mobilize additional private capital, is essential. To ensure that the limited pool of concessionary funding is used efficiently and effectively, a shared understanding of the roles and limitations of public and private funders is necessary. In this paper, we describe the high-level funding gap for sustainable agriculture, the general landscape of agricultural finance, and the concept and potential roles of blended finance in this context. This paper introduces the conditions under which different financing mechanisms can contribute to addressing barriers related to sustainable agriculture investments. It highlights that multiple funding modalities must be utilized in order to achieve agricultural investment at a meaningful level and encourages greater exploration of the range of blended financing structures to increase SDG-related agriculture investments.

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Sustainable agri-food investments require multi-sector co-development of decision tools

Christine Negra, Roseline Remans, Simon Attwood, Sarah Jones, Fred Werneck, Allison Smith
Ecological Indicators journal, 2019.

Global targets, such as the UN Sustainable Development Goals, and private sector commitments, such as de- forestation-free supply chains, are stimulating growing demand for sustainable investment opportunities in the food and agriculture sector. Yet, the supply of such opportunities has been slow to materialize despite a pro- liferation of impact funds and other sustainability-focused funders seeking to direct global capital flows into the sector. This can be explained, in part, by the heterogeneous, multi-layered, and fragmented nature of agricultural production systems and food value chains and the poorly developed knowledge systems available to inform new types of investment. The volume of sustainability-oriented investment in the food and agriculture sector is likely to be hampered by the absence of a robust scientific evidence base and well-designed tools (e.g. indices and other benchmarking mechanisms) for harnessing knowledge to investment decision processes. At present, indicator- based tools for incorporating sustainability into agricultural value chains are being developed without adequate engagement by scientists. Collaborative co-development of decision tools by researchers and corporate and fi- nancial actors, that draws upon their distinct needs and knowledge sets, can improve the utility of these tools for real-world application (e.g. assessing non-financial returns; mitigating reputational risk). This paper proposes new requirements and strategies for the scientific community to contribute to co-development of science-based indicators and other decision tools that better enable agri-sector companies and investors to integrate food system sustainability considerations into management and capital allocation. It will present early lessons from multi-sector engagement in construction of indices, such as the Agrobiodiversity Index (ABDI), and review new modes for research institutions to engage with private sector partners.

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EIRA: Environmental Impact Reporting in Agriculture
Creating a link between agricultural investments and environmental impact

Negra C, Havemann T, Baumann K, Werneck F, Houtkamp J, Janssen H, Kuikman P, Vullings W.
Clarmondial AG, Zürich, Switzerland, 2019.

Aiming to lay the foundation for dynamic, globally-relevant benchmarking, the EIRA initiative convenes motivated agriculture sector investors, companies, researchers, and others to design, build, and test a software tool that delivers information needed for directing capital toward agricultural operations with better environmental performance and lower risks. This report builds on a 2018 feasibility assessment conducted by Clarmondial AG, Versant Vision, and Wageningen Environmental Research with support from EIT Climate-KIC’s Climate-Smart Agriculture Booster.

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How conservation organisations can engage with investors to mobilise capital

Clarmondial AG, Zürich, Switzerland, 2017.

“Capitalising Conservation” explores how conservation organisations and their partners can mobilise private investment in conservation. The report provides a framework to guide the identification, structuring and execution of investments in conservation. It describes various roles conservation organisations can play to unlock investment capital and supports effective investor engagement. The publication highlights how leading conservation organisations have pioneered investment strategies and structures in conservation finance, illustrated by case studies. “Capitalising Conservation” was produced by Clarmondial in cooperation with WWF and with funding from EIT Climate KIC.

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10 best bet innovations for adaptation in agriculture
A supplement to the UNFCCC NAP Technical Guidelines

CCAFS working paper, 2017
Tanja Havemann contributed to chapter 10. Scaling up financing for climate change adaptation in agriculture

Faced with the triple challenges of achieving food security, adapting to the impacts of climate change, and reducing emissions, agriculture has been prioritized by countries as a sector for climate action. The national process of formulating and implementing National Adaptation Plans, which gives effect to the ambitions set out in the Intended Nationally Determined Contributions of countries, is a key instrument that will not only facilitate access to resources, but also advance best practice and implementation of proven and effective adaptation actions. In order to support countries in the elaboration of their National Adaptation Plans, this paper aims to tap into agricultural research for development conducted by CGIAR Centers and research programs, to identify best bet innovations for adaptation in agriculture, which can help achieve food security under a changing climate, while also delivering co-benefits for environmental sustainability, nutrition and livelihoods.

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Reducing risks and seizing opportunities: integrating biodiversity into food and agriculture investments

Agrobiodiversity Index – summary for investors

by Dr Christine Negra. Contributors: Allison Smith, Fred Werneck. June 2017

Using the Agrobiodiversity Index, companies and governments can reduce operational and reputational risks and seize opportunities by estimating and monitoring the agrobiodiversity impact of supply chain investments. The Agrobiodiversity Index can also help investors to screen their portfolios for companies and governments that promote agrobiodiversity, as a proxy for operational and reputational risks related to climate change and unsustainable production.

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Value chain finance for agricultural climate change resilience

CTA (Technical Centre for Agricultural and Rural Cooperation) Discussion Paper

by Havemann, Tanja (Clarmondial AG). October 2016

The purpose of this report is to explore the potential for agricultural value-chain finance (AVCF) to promote climate change resilience in ACP countries, focusing on the experiences of farmers and financiers with market-based lending and risk-mitigation finance products. This paper focuses on loans (i.e. debt, credit), but the role of concessional financing is discussed in the last section. By ACP countries, this paper specifically means the 79 state signatories to the Cotonou Agreement (the ACP-EC Partnership Agreement). These include 48 countries from Sub-Saharan Africa, 16 from the Caribbean and 15 from the Pacific.

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Impact in the forests : Summary

The potential for business solutions to combat deforestation in large forest landscapes in Asia: a progress report.

by Clarmondial, Ennovent, GreenWorks Asia, Impact Hub and WWF. 2016

N. Dudley, P. Chatterton, E. Cramer, A. Cremonesi, R. Deau, T. Havemann, H. Hoffmann-Riem, T. Neupane, A. Safford, P. Scheuch, D. Shandilya, P. Skvaril, S. Stolton, S. Varma. 2016. Impact in the Forest: The Potential for Business Solutions to Combat Deforestation in Large Forest Landscapes in Asia, WWF-Switzerland: Zürich.

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Leveraging ecosystems:
A business-focused perspective on how debt supports investments in ecosystem services

Tanja Havemann, Clarmondial; Daniel Schuster, Credit Suisse; Justine Leigh-Bell, Climate Bonds Initiative; Dr. Christine Negra, Advisor to Clarmondial; Anne Levonen, Credit Suisse. April 2016.

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European Dialogue: 5th Microfinance Award
Microfinance and the Environment

Tanja Havemann and Fred Werneck
Published by the European Microfinance Platform. March 2015.

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Coordinating finance for climate-smart agriculture
Ecoagriculture Discussion Paper No. 9

Shames, S., Friedman, R. and Havemann, T.
for EcoAgriculture Partners. August 2012.

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Mechanisms for agricultural climate change mitigation incentives for smallholders

CCAFS Report 6
Copenhagen, Denmark

Havemann, T. and Muccione, V. (2011)

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Financing mitigation in smallholder agricultural systems
Issues and opportunities

CCAFS Working Paper

Havemann, Tanja. 2011.

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A System to Deliver Terrestrial Carbon Mitigation (REDD+ to AFOLU):
Functions, Institutions and Transition Pathways

The Terrestrial Carbon Group

Anna Creed and Tanja Havemann (2009)

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Measuring and Monitoring Terrestrial Carbon:
The State of the Science and Implications for Policy Makers

Policy Briefs #5, The Terrestrial Carbon Group Project

Havemann, Tanja (2009)

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Articles, interviews and other contributions

Could debt swaps fund green growth?

Environmental Finance Magazine. October 2012.

Article published by Tanja Havemann and Fiona McKenzie (University of Sydney)

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Opalesque Radio Feature 16
Tanja Havemann in conversation with Sona Blessing

Despite the odds why investors should consider/continue to invest in carbon markets

In this feature Tanja Havemann, director of Beyond Carbon shares why despite the credit crisis, inconclusive Copenhagen and Cancun Kyoto Protocol talks and the scandals that affected the carbon market earlier this year, she still sees investment opportunities and, why shifting toward implementing regional schemes (fragmentation in markets) as opposed to waiting for global consensus on regulation has its advantages…

Podcast available as MP3 here and on Opalesque’s website here

Fraud and Corruption in the Carbon Finance Markets – Lessons learnt

Tanja Havemann & Amanda Gore
for Transparency International Switzerland (2011)

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