EMEA Side Event at COP29 – Financing Agroforestry: Exploring Diverse Financing Schemes for Sustainable Land Use

Agroforestry, the practice of integrating trees and shrubs into agricultural landscapes, offers significant environmental, economic, and social benefits. It enhances biodiversity, improves soil health, increases crop resilience, sequesters carbon, and provides sustainable livelihoods for farmers. Despite these benefits, the adoption of agroforestry systems has been hindered by limited access to financing tailored to its unique characteristics and long-term nature.

Financing agroforestry requires innovative schemes that account for its dual role in producing both agricultural and forestry-related outputs. These financing models need to be adaptable to the timelines of agroforestry projects, support smallholders, and align with sustainability goals. This event seeks to explore various financing schemes, highlight successful case studies, and foster dialogue on how to accelerate investment in agroforestry systems globally.

Key Discussion Points:

• Agroforestry’s Economic and Environmental Benefits: The dual benefits of agroforestry for enhancing biodiversity, improving resilience to climate change, and providing long-term economic returns.
• Public and Private Financing Models: The role of government subsidies, grants, and policy frameworks that incentivize agroforestry, alongside private-sector-led green financing models like green bonds and carbon credits.
• Impact Investing and Blended Finance: How impact investors and blended finance mechanisms can de-risk agroforestry investments while delivering both financial returns and social/environmental benefits.
• Access to Finance for Smallholders: Addressing the financing gap for smallholder farmers, including microfinancing, cooperatives, and the role of community-based financing schemes.
• Innovative Financial Tools: Exploring tools such as payment for ecosystem services (PES), carbon financing, agroforestry insurance products, and sustainability-linked loans that support long-term agroforestry investments.
• Challenges and Opportunities for Scaling: Identifying the key barriers to scaling up agroforestry financing, including the need for long-term investment horizons, regulatory frameworks, and alignment with sustainability standards.

Agenda

Moderator: Dr. Yeganeh Forouheshfar, Senior Researcher at the Euro-Mediterranean Economists Association (EMEA)

Panel: (TBC)

1. Gerry Lawson, Policy Officer at EURAF
2. Sergio Ponsá Salas, Director of BETA Technological Center and Coordinator of BETA Research Group
3. Martin Lukac, Professor in Ecosystem Science, University of Reading, Coordinator of the ReForest project
4. Enrique Doblas, Ecology researcher, transfer officer, consultant at CREAF
5. Tiago Zibecchi, Researcher at the Euro-Mediterranean Economists Association
6. Marek Chalupnik, Co-Founder & COO at DeepRoots
7. UfM Speaker TBC

Date: 19 November 2024

Time: 17:00 – 18:30 AZT / 14:00- 15:30 CET

Venue: Mediterranean Pavilion, COP 29 Conference centre, Baku, Azerbaijan, and online

Event format: Hybrid (In-person and virtual participation)