Nature-based solutions in agriculture: financing avenues in Latin America and the Caribbean

This document identifies and analyzes financing mechanisms to promote the adoption of nature-based solutions in agriculture in Latin America and the Caribbean. It highlights that financing options are broad and can include new ways of generating income to invest in these solutions, as well as alternatives for channeling support to farmers for their implementation. Innovative financing avenues are identified, such as a reissue of the sovereign debt-for-nature and climate action swap, as well as sovereign debt borrowing at preferential rates through green bonds for sustainability. It highlights the opportunity presented by the transformation of pre-existing incentives to invest in nature-based solutions and discusses adjustments to more traditional forms of agricultural support, such as insurance and credit, that can encourage investment in nature-based solutions.