Project: Regenerative Outcomes Finance Platform
State of development: Current
Stage of development: Early stage
Type of instrument — Impact Bond: No; Outcomes Fund: Yes; Social Impact Incentives (SIINC): No; Social Impact Guarantee: No; Payment-by-results (no pre-financing): No; Technical Assistance and Market-building program: No; Other: 
Part of a larger outcomes-based financing program: Yes 
Expected launch date: Q1 - 2023
Total expected project development time: 12-24 months
Expected length of project (years): 5
Project design process began: Q1-2022
Rationale for using outcome-based finance: Outcomes based financing is being used to help de-risk and accelerate the transition to regenerative agriculture. Outcomes model also allowing for greater focus on ESG reporting, performance management and behavior change.
Role of the domestic government — Outcomes funder: No; Service provider: No; Member of project committee: No; No formal role: Yes; Other: 
Service providers identified and selected — Request-for-proposals: No; Direct contracting by outcome funder/investor/intermediary: Yes; Provider-led deal development: No; Other: 
Feasibility study: Yes
Proposed financing instruments — Debt: No; Equity: No; Guarantee: No; Grant: No; Other: TBD
Technical assistance grant: Yes — 
Estimated maximum potential outcome payment: TBD TBD
Social/developmental challenge: Solving the global climate crisis must consider the impacts of the global food system on the environment. Transitioning to regenerative food production at scale will require a shift in the practices of both large and small producers and of the Food and Beverage industry. The F&B sector has been particularly ambitious in its commitments to cutting supply chain emissions and Net Zero. A transition of this magnitude requires financing that incents farmers in shifting to regenerative practices. It also demands dynamic learning, outcomes-focused pricing methods, new technologies to capture robust data and the identification of new business opportunities for farmers who become regenerative producers.
Expected intervention model: Multiple transition pathways to be tested for transitioning to regenerative agriculture based on locally appropriate technology and global best practice.
Policy sectors — Employment and private sector development: No; Education: No; Social protection: No; Criminal justice: No; Health: No; Agriculture: Yes; Environment and climate change: Yes; Water, Sanitation and Hygiene: No; Energy: No; Humanitarian: No; Early Childhood Education: No; Other: 
Secondary SDG goals: 12,13,15
Target population: Small and medium sized agriculture producers of key agriculture commodities that are part of supply chains of large food and beverage companies.
Targeted number of unique service users or beneficiaries: TBD
Unit type of targeted beneficiaries: Individual
Country income classification of beneficiaries — Low-income: Yes; Lower-middle-income: Yes; Upper-middle-income: Yes; High-income: Yes
Notes: Data for this pipeline project was last updated in April 2022
Delivery location: Latin America & the Caribbean