FP302

Latin America and the Caribbean (LAC) is home to some of the world’s most important carbon-sink ecosystems and biodiversity hotspots. However, the region is also highly vulnerable to climate change. These climate pressures threaten ecosystems, rural livelihoods, and resource-dependent communities. While nature-based solutions are increasingly recognised as critical tools for climate mitigation and adaptation, investment in these approaches remains limited across the region. Rural small and medium enterprises (SMEs), which play a vital role in delivering nature-based solutions, face significant financing barriers.  Many SMEs and smallholder farmers lack the technical capacity and business skills to implement climate-resilient, nature-positive practices at scale.

This programme seeks to close this gap by providing tailored growth capital and technical assistance to rural SMEs working in nature-based solution value chains across Latin America and the Caribbean. Investments will focus on sectors such as sustainable and regenerative agriculture, agroforestry and sustainable forestry management, aquaculture, circular economy solutions, and ecotourism.

Alongside financing, the programme will deliver specialised technical assistance to strengthen business performance and support the adoption of climate and nature standards, certifications, and monitoring systems. Over a ten-year period, the initiative is expected to generate significant climate benefits, including an estimated reduction of 55.5 million tonnes of carbon dioxide equivalent, while supporting climate resilience for approximately 1.3 million people and promoting sustainable management across more than one million hectares of land.

This project was developed under the Project-specific Assessment Approach (PSAA).