At Climate Action Week in London in July, the world's first financial mechanism offering green bonds to finance sustainable soy production in Brazil was launched
The Responsible Commodities Facility, presented at the London Stock Exchange, will aim to provide low-interest credit lines to Brazilian producers committed to using degraded pastures and avoiding deforestation and removal of native vegetation for agriculture. The mechanism is expected to provide more than US$1 billion over the next four years to finance the production of more than 180 million tons of sustainable soybeans and corn.
“Global demand for soybeans shows no signs of slowing down and is consequently driving continued expansion of agricultural production areas in Brazil,” said Shaun Kingsbury CBE, Chairman of Sustainable Investment Management Ltd – SIM, the fund’s management company. “By redirecting soybean expansion into degraded pastureland, the Responsible Commodities Facility will help curb deforestation to clear Cerrado areas, reducing carbon emissions and promoting compliance with Brazilian environmental laws (i.e. the Forest Code).”
