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

Tanja Havemann (), Christine Negra () and Fred Werneck
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Tanja Havemann: Clarmondial AG
Christine Negra: Versant Vision LLC
Fred Werneck: Clarmondial AG

Agriculture and Human Values, 2020, vol. 37, issue 4, No 23, 1292 pages

Abstract: Abstract 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 cannot 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.

Keywords: Blended finance; Investment; Finance; Agriculture; Agribusiness; Impact investment; SDGs; Sustainable agriculture; Climate smart agriculture (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (13)

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DOI: 10.1007/s10460-020-10131-8

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