Under 10% of official development assistance is directed towards the agriculture, forestry and other land use sector (AFOLU).
This report by CGIAR, looks into some of the key barriers that prevent capital from flowing to sustainable land use and land preservation initiatives, especially in the tropics. Particular attention is given to local farm and producer organizations (LFFPOs) as a an important intermediary in allocating capital to smallholder farmers. Blended finance, along with green bonds and crowdfunding, are discussed in depth as options to reduce transaction costs, source investment opportunities and address investment risks to mobilize more capital.
