Opportunities and Challenges of Impact Investing in Climate-Smart Agriculture in Latin America

Abstract

Climate-smart agriculture is inherent to impact investing. Altogether, it provides mitigation of the highest appointed risk for agriculture investing—climate change; it brings to light out-of-the-box solutions that go from soil management practices to new sorts of apps and technology with a direct positive and measurable impact on reduced desertification; better soil quality; lower costs; and food security. In this chapter, we address the most commonly mentioned concerns of individual and institutional investors about climate-smart agriculture investing and provide real and up-to-date cases on how these perceived risks are being addressed by businesses in Latin America. The findings show that new business models and changed mindsets resemble concrete opportunities and that a sort of new actors in the field will provide the required seed and start-up capital.