This edition of the Finance Briefing introduces the Building Blocks for Financing Deforestation-Free Supply Chains (Smallholder Focus). It provides a practical framework for turning deforestation-free commitments into financeable, inclusive solutions, by putting smallholder farmers at the center and addressing the real constraints they face, from limited access to finance and risk data to traceability and compliance requirements.
The Building Blocks are ten modular, interlinked components that together form an enabling environment for smallholder-inclusive, deforestation-free value chains. They span the core foundations, such as regulatory and policy alignment, access to technology, socio-economic conditions, and effective data and financial flows, as well as “accelerators” like capacity-building, awareness-raising and stakeholder cooperation. By offering a shared structure for coordinated action, the framework aims to help stakeholders align incentives, reduce fragmentation and design context-specific financing approaches. A Uganda coffee sector case illustrates how the Building Blocks can translate systemic challenges into priority actions and partnership opportunities,
