Mobilizing more for climate (MoMo4C)

This is a summary of one of a series of case studies that provide insights into various mechanisms used to increase access to finance for smallholder farmers, SMEs and communities in their efforts to contribute to sustainable landscapes. The case studies focus on the strategies used by various stakeholders to reduce the risks of selected financial flows for investors, intermediaries and recipients. These case studies follow up on recommendations made by participants in a consultative process on innovative finance for sustainable landscapes (Louman et al 2020). The goal is to provide more evidence of successful strategies in order to increase access to finance for smallholder farmers, SMEs and communities (Primo et al 2021).

The case study summarized here assessed the capacity of multistakeholder partnerships to mitigate risks and leverage public and private investments at the landscape and subnational level. It studied the process of reaching a shared vision at the subnational level and how this cascaded into specific landscapes. The case study showed that a strategy that promotes synergies and addresses the fragmentation of various investments and projects has strong appeal, inspires confidence among investors, and leads to more effective actions and impacts at scale.

Access to finance is a key element of sustainable and inclusive landscapes. We conducted a literature review to identify the factors that contribute to or hinder inclusive financing for micro/small/medium-sized enterprises and projects across sectors in ways that collectively contribute to more sustainable landscapes in the tropics. The key factors in the design of inclusive landscape finance are landscape governance, the financial literacy of local stakeholders, access to finance technology and services, and inclusive finance facilities and associated mechanisms for integrated (i.e., multi-project, multi-sector, spatially coordinated) landscape finance. The most frequent challenges are the types of existing financial products, the lack of livelihood assets among recipients (such as capital and income), the lack of transparency in finance mechanisms, the small scale of potential business cases, and the high risks perceived by finance providers and their customers. From this review, we propose components specifically focused on financial inclusion that complement the framework for integrated landscape finance developed by the Finance Solutions Design Team for the 1000 Landscapes for 1 Billion People Initiative. We suggest how the revised framework can be applied in designing and assessing the inclusiveness of finance mechanisms for integrated landscape management and to guide further research.

This report (in Spanish) is part of a series of case studies that provide insights into various mechanisms used to increase access to finance for smallholder farmers, SMEs and communities in their efforts to contribute to sustainable landscapes. The case studies focus on the strategies used by various stakeholders to reduce the risks of selected financial flows for investors, intermediaries and recipients. These case studies follow up on recommendations made by participants in the consultative process on innovative finance for sustainable landscapes. The goal is to provide more evidence of successful strategies in order to increase access to finance for smallholder farmers, SMEs and communities.

This case study by Fundación Profin provides information on the financial instrument, Revolving Fund, used by the Indigenous Forestry Association "Ascension" Santa Cruz, Bolivia, for the fulfillment of their social objectives of the integrated landscape, the financial flow in which it is developed and the mechanisms to mitigate associated and shared risks, in support of Community Forest Organizations in the area. 

 This report is part of a series of case studies that provide insights into various mechanisms used to increase access to finance for smallholder farmers, SMEs and communities in their efforts to contribute to sustainable landscapes. The case studies focus on the strategies used by various stakeholders to reduce the risks of selected financial flows for investors, intermediaries and recipients. These case studies follow up on recommendations made by participants in the consultative process on innovative finance for sustainable landscapes. The goal is to provide more evidence of successful strategies in order to increase access to finance for smallholder farmers, SMEs and communities.

This case study looks at how an international agribusiness, the source of the flow, strengthens the capacity of its smallholder providers to generate more income from their cocoa production and become more climate resilient. The case study focuses on how the company integrates technical support to producers with strengthening their capacity to save and invest through village savings and loan associations (VSLAs) in Ghana.

This report is part of a series of case studies that provide insights into various mechanisms used to increase access to finance for smallholder farmers, SMEs and communities in their efforts to contribute to sustainable landscapes. The case studies focus on the strategies used by various stakeholders to reduce the risks of selected financial flows for investors, intermediaries and recipients. These case studies follow up on recommendations made by participants in the consultative process on innovative finance for sustainable landscapes. The goal is to provide more evidence of successful strategies in order to increase access to finance for smallholder farmers, SMEs and communities.

This case study focuses on the various types of productive loans provided by the Social Performance Management Unit of the Credit Union Semandang Jaya that are available to finance small-scale farmers and businesses, and analyzes how these are perceived to contribute to landscape objectives and integrated landscape management initiatives in the Ketapang-Kayong Utara landscape in West Kalimantan, Indonesia.

The report is part of a series of case studies that provide insights into various mechanisms used to increase access to finance for smallholder farmers, SMEs and communities in their efforts to contribute to sustainable landscapes. The case studies focus on the strategies used by various stakeholders to reduce the risks of selected financial flows for investors, intermediaries and recipients. These case studies follow up on recommendations made by participants in the consultative process on innovative finance for sustainable landscapes. The goal is to provide more evidence of successful strategies in order to increase access to finance for smallholder farmers, SMEs and communities.

This case study describes a conservation finance mechanism implemented by the Environmental Conservation Trust of Uganda (ECOTRUST). The mechanism delivers US$6 of every US$10 to smallholder conservation farmers through a blended model that combines public (donor) finance, private-sector foreign direct investment (FDI), and community contributions, to support long-term biodiversity and climate change outcomes at the local level. ECOTRUST has developed this model over 17 years of implementing its Trees for Global Benefit (TGB) program.