**

Investing in long-term resilience: mobilising private finance for regenerative agriculture ahead of COP30

The global food system faces a triple crisis: climate change, biodiversity loss, and unsustainable agricultural practices. Regenerative agriculture, a holistic approach that prioritizes soil health, biodiversity, and ecosystem services, offers a powerful solution. However, scaling up regenerative agriculture requires significant investment, and attracting substantial private finance is crucial for achieving meaningful progress before COP30 in Brazil. This article explores how to mobilize this crucial funding.

The Urgent Need for Regenerative Agriculture

Climate change is already impacting agricultural yields, exacerbating food insecurity and threatening livelihoods. Conventional farming methods contribute significantly to greenhouse gas emissions, deforestation, and soil degradation. Regenerative agriculture, in contrast, sequesters carbon in the soil, enhances biodiversity, and improves water retention, creating a more resilient and sustainable food system. This approach offers a crucial pathway to achieving the Sustainable Development Goals (SDGs) and mitigating the impacts of climate change, particularly in the context of climate-smart agriculture.

Key Benefits of Regenerative Agriculture

Regenerative practices deliver multiple benefits across environmental, social, and economic dimensions:

• Enhanced Carbon Sequestration: Healthy soils act as significant carbon sinks, mitigating climate change. This carbon sequestration is crucial for meeting net-zero targets.
• Improved Soil Health: Regenerative practices build soil fertility, reducing the need for synthetic fertilizers and pesticides.
• Increased Biodiversity: Diverse cropping systems and habitat restoration support biodiversity, improving ecosystem resilience.
• Enhanced Water Management: Improved soil structure increases water infiltration and retention, reducing water stress.
• Increased Farm Resilience: Regenerative farms are better equipped to withstand climate shocks, such as droughts and floods.
• Improved Farmer Livelihoods: Regenerative practices can increase farm profitability and create new economic opportunities.

Mobilizing Private Finance for Regenerative Agriculture

Despite the clear benefits, accessing finance remains a significant barrier for farmers transitioning to regenerative practices. Traditional financial institutions often struggle to assess the risk and long-term returns associated with regenerative agriculture, resulting in limited investment. To bridge this gap, several strategies are needed:

1. Developing Innovative Financial Instruments

• Impact Investing: Impact investors are increasingly interested in regenerative agriculture, seeking both financial returns and positive environmental and social impact. However, standardised metrics for measuring impact are needed to attract further investment.
• Green Bonds and Sustainability-Linked Loans: These financial instruments can channel capital towards projects with demonstrable environmental benefits, including regenerative agriculture initiatives.
• Blended Finance: Combining public and private funding can de-risk investments and attract larger sums of private capital. This approach is particularly crucial for early-stage projects and smaller farmers.
• Carbon Credits and Markets: Farmers can generate revenue by sequestering carbon in their soils, creating a financial incentive for adopting regenerative practices. However, robust carbon accounting methodologies are vital for ensuring market integrity.

2. Enhancing Data Transparency and Measurement

Data transparency is crucial for building trust and attracting investment. This includes:

• Standardized Metrics: Developing common metrics for measuring the environmental and social impacts of regenerative agriculture will improve the comparability of projects and attract more investors.
• Digital Platforms: Digital tools can streamline data collection and reporting, reducing the administrative burden on farmers and enhancing transparency for investors.
• Third-party Verification: Independent verification of environmental and social impacts can assure investors that projects are delivering on their promises.

3. Building Capacity and Knowledge Sharing

Many farmers lack the knowledge and skills to implement regenerative practices effectively. Investing in capacity building is essential, including:

• Training and Education Programs: Providing farmers with the necessary skills and knowledge to adopt regenerative techniques.
• Extension Services: Providing ongoing support and advice to farmers implementing regenerative practices.
• Knowledge Sharing Networks: Connecting farmers, researchers, and investors to facilitate the exchange of best practices.

The Role of COP30 in Accelerating Investment

COP30 represents a critical opportunity to accelerate the global transition to regenerative agriculture. Governments and international organizations can play a crucial role by:

• Setting Ambitious Targets: Setting clear targets for the adoption of regenerative practices can drive investment and innovation.
• Developing Policy Frameworks: Creating supportive policies that incentivize the adoption of regenerative agriculture and streamline access to finance.
• Facilitating Public-Private Partnerships: Fostering collaboration between governments, private sector actors, and civil society organizations to mobilize resources and share knowledge.

Conclusion: A Collective Effort for a Sustainable Future

Mobilizing private finance for regenerative agriculture is a crucial step towards building a more sustainable and resilient food system. By developing innovative financial instruments, enhancing data transparency, and investing in capacity building, we can unlock the transformative potential of regenerative agriculture and create a more secure future for food and agriculture. The upcoming COP30 provides a critical platform to accelerate this crucial transition and secure the long-term health of our planet. The focus must be on collaborative efforts, technological advancements in precision agriculture, and a clear understanding of the long-term value that regenerative practices bring to the agricultural sector, ultimately ensuring a healthier planet for future generations. This requires a holistic approach involving governments, the private sector, and farmers themselves, working together to achieve a truly sustainable agricultural landscape.