Financing Sustainable Agriculture in Brazil's Cerrado: Insights from London Climate Action Week 2025

In July 2025, the London Climate Action Week (LCAW) served as a pivotal platform for stakeholders focused on sustainable agriculture in Brazil's Cerrado biome. The event, prominently featuring the Soft Commodities Forum (SCF) and its partners, including the Tropical Forest Alliance, IDH, and WWF, highlighted Brazil's essential role in addressing global climate challenges and advancing food security through sustainable practices.

The Cerrado, recognized for its ecological significance, is a biodiversity hotspot and a crucial agricultural region. It supports livelihoods for millions while serving as a critical carbon sink. As discussions unfolded at LCAW, the emphasis was placed on transitioning to sustainable, deforestation- and conversion-free (DCF) agricultural practices. This approach aims to balance agricultural productivity with ecological preservation, ensuring that the Cerrado continues to thrive as a food production hub.

A notable session organized by the Sustainable Landscapes Partnership (SLP) focused on Transition Finance for Resilient Agricultural Systems. This collaboration between the Consumer Goods Forum’s Forest Positive Coalition and the WBCSD’s SCF gathered various stakeholders to explore financial strategies that could facilitate a shift towards sustainable practices in the Cerrado. Participants discussed how to mobilize finance effectively to support this transition, underscoring the urgent need for holistic, landscape-scale solutions.

According to Debora Dias, Senior Manager at the Consumer Goods Forum, “The Cerrado is at a crossroads where sustainable finance can either catalyze growth or lead to ecological degradation. Our focus is on fostering partnerships that align economic incentives with environmental stewardship.”

The session revealed that the SLP has successfully mobilized nearly $10 million in joint investment, positively impacting over 700 farms and advancing sustainable outcomes across approximately 800,000 hectares. However, stakeholders recognize that this is just the beginning. The partnership is currently seeking an additional $10 million in near-term co-funding and over $10 million annually in blended capital to scale its impact further.

During the event, COFCO International presented as a representative of the SCF, showcasing how the SLP has evolved from grant-based funding to a more sustainable investment model. This shift aims to foster long-term financial resilience in the agricultural sector while encouraging transparency and traceability within supply chains.

Rabobank and the Agri3 Fund also participated in discussions, emphasizing the need for innovative financing mechanisms that attract private investments into sustainable agriculture. Sainsbury’s, a member of the CGF-FPC, provided insights into the retailer's perspective on enhancing supply chain resilience through direct investments in sustainable practices.

A significant development during LCAW was the announcement of Brazil's “Caminho Verde” (Green Way) program, aimed at channeling public funds into subsidized loans for regenerating degraded pastures. This initiative aligns with the goals of advancing regenerative agriculture and reducing the necessity for further land-clearing.

Experts reiterated the importance of aligning value chains across agricultural producers and retailers to promote sustainable practices. The SCF and CGF-FPC continue to collaborate on addressing challenges related to indirect supply chains, risk assessment methodologies, and joint landscape investments in high-risk areas of the Cerrado.

As the discussions concluded, a consensus emerged: systemic change necessitates collective action. Building resilient landscapes and sustainable food systems requires collaboration among corporations, investors, governments, and civil society. As articulated by Matt Inbusch, Director of Sustainable Landscapes at WBCSD, “No single initiative will suffice. Our goal must be to create a synergistic approach that maximizes our impact on both people and the planet.”

The SLP stands as a crucial platform for advancing sustainable agriculture in the Cerrado, mobilizing capital, and driving progress toward a future where agricultural practices contribute positively to environmental and social outcomes. Stakeholders interested in participating in this transformative journey are encouraged to contact Debora Dias or Matt Inbusch for further engagement opportunities.