Low Emissions and Climate Resilient Agriculture Risk Sharing Facility

Supporting the transition to low emission, climate resilient agriculture in Guatemala and Mexico through the creation of a risk sharing facility to unlock innovative and scalable financial instruments for MSMEs.

In Latin America, the combined effects of climate change, inequality and population pressures are escalating the food and nutrition security and income challenges faced by smallholder farmers. In the Caribbean, rising sea levels are leading to increased agricultural land loss and causing more widespread damage to agricultural systems as a result of saline intrusions into coastal aquifers.

The risk-sharing facility created by GCF and IDB will target agricultural MSMEs that demonstrate environmentally sustainable practices. It will support them to engage lenders for the longer-term loans needed for climate-smart investments. GCF’s investment in this programme will support both mitigation and adaptation outcomes. The risk-sharing facility will attract additional local and international private sector investors, resulting in significant additional private capital being channelled into these activities.

The project has an estimated lifespan of 15 years.