Access to financial resources is crucial for promoting deforestation-free coffee supply chains and enhancing transparency. Smallholder coffee farmers, in particular, need support to implement sustainable land use practices and adopt new technologies required by national and international markets, such as traceability systems. Barriers such as high upfront costs, limited access to credit, and high investment risks limit their ability to adopt key sustainability practices.
Innovative financial solutions, including grants, blended finance, and microfinance, can help bridge this gap. By facilitating smallholders’ access to finance, these mechanisms can support the adoption of sustainable and deforestation-free agricultural practices.
The 5th SAFE Finance Briefing explores the urgency of mobilizing financing for deforestation-free coffee supply chains, the key stakeholders involved, and the potential of financial mechanisms to support smallholders. It also outlines pathways for smallholders to access such financing and highlights successful case studies from Brazil, Ecuador, Zambia, DRC, Vietnam, and Indonesia, particularly those covering commodities included in the EU Deforestation Regulation (EUDR).
You can download the Briefing here.
