INNOVATION<\/h3>\n\n\n\n
The instrument\u2019s structure addresses the main barriers preventing smallholders in the Amazon from widely adopting agroforestry systems by:
\u2022 Providing the upfront investment needed to implement agroforestry systems in smallholdings through a partnership agreement, with production shared between the smallholder and the company
\u2022 Engaging smallholders in implementation, providing them with an additional income from the start, and as such, training them in agroforestry so they can expand such systems beyond the scope of the partnership
\u2022 Developing markets to sell the shared production<\/p>\n\n\n\n
SCBF will create a blueprint forest restoration business model in rural settlements that increases smallholder income by more than 50% while delivering compliance to Brazil\u2019s Native Vegetation Protection Law.<\/em><\/p>\n\n\n\n \u2022 Store at least ten times more carbon over the next 20 years than the current vegetation in degraded pastures It will then engage smallholders by hiring them at their will and training them to implement, manage, and harvest crops in their landholdings. It will also provide all inputs as well as logistics after harvest. At harvest, between 20% and 30% of the harvest would be owned by the smallholder. A fund to increase forest restoration in the Amazon by investing and providing technical assistance to restore degraded lands in smallholders\u2019 farms with agroforestry systems and, at the same time, developing and facilitating sales of their products<\/p>\n","protected":false},"author":185,"featured_media":30489,"template":"","format":"standard","meta":{"_acf_changed":false},"programs":[395],"regions":[353],"topics":[842,126,1201,1172],"collaborations":[],"class_list":["post-31552","cpi_publications","type-cpi_publications","status-publish","format-standard","has-post-thumbnail","hentry","programs-global-innovation-lab-for-climate-finance","regions-brazil","topics-financial-innovation","topics-forests","topics-land-use-and-conservation","topics-sustainable-agriculture"],"acf":[],"yoast_head":"\nIMPACT<\/h3>\n\n\n\n
\u2022 Increase smallholders\u2019 income by at least 58% if implemented in 1 hectare, and by 234% if expanded in 4 hectares
\u2022 Develop and provide a framework for financial institutions to assess, evaluate, and approve financing of agroforestry systems presented by smallholders across the country, adjusted by regional conditions<\/p>\n\n\n\nDESIGN<\/h3>\n\n\n\n
![\"\"](\"https:\/\/www.climatefinancelab.org\/wp-content\/uploads\/2018\/02\/090818-SCBF-1024x612.jpg\")
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The instrument consists of an investment vehicle that will be the main shareholder of a new company. The new company will be responsible for the agroforestry investments in smallholders\u2019 lands. The company will screen and select smallholders that are eligible for agroforestry investments, and enter into Rural Partnership Agreements with selected smallholders, using a portion of their degraded landholdings to invest in the production of agroforestry systems.<\/p>\n\n\n\n
The company will select which crops will be grown using agroforestry systems. The crops to be placed in the region will be chosen based on market liquidity, storage capacity (if possible), adaptability to the region. It will also play an aggregator role developing markets and collectively selling the shared agroforestry harvests to end buyers.<\/p>\n\n\n\n![\"\"](\"https:\/\/www.climatefinancelab.org\/wp-content\/uploads\/2018\/02\/Socio-Climate-Benefits-Fund_table-05-1024x945.jpg\")
<\/figure><\/div>\n","protected":false},"excerpt":{"rendered":"