This Knowledge Publication, developed for the fifth Regional Technical Dialogue (RTD#5) under the Sustainable Agriculture for Forest Ecosystems (SAFE) project, examines the urgent need for inclusive and scalable financing mechanisms to support deforestation-free commodity production in Indonesia and Malaysia. The publication highlights how financial exclusion, limited ESG capacity, and regulatory pressures such as the EU Deforestation-Free Regulation (EUDR) constrain smallholders’ participation in sustainable supply chains. Drawing from emerging initiatives in blended finance, green lending, and sustainability-linked financing, the report emphasizes affordability, legality, and technical assistance as critical pillars for scaling impact and strengthening climate-smart, traceable, and resilient commodity production systems.
Region:
Luwero, Nakaseke, Kassanda, Mubende, Bukomansimbi, Kyotera, Omoro, and Nwoya
Target group:
Smallholder farmers, traders, state and non state actors, and processors
Key activities:
- Capacity building of smallholder coffee farmers in production practices and sustainable land use management.
- Establishing traceability system and facilitating access to sustainable financing
- Facilitate inclusive business partnerships between producer organizations and supply chain actors
- Promote multi-stakeholder cooperation
Commodities:
