Promoting low emission and climate resilient practices in the soy and cattle ranching program in Paraguay (GCF-NNLAC02)

  • Paraguay
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • Green Climate Fund (GCF)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Bank Risk Rating
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Dutch Development Bank (FMO)
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
  • Agriculture and Forestry
  • Climate and Environment
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
Not Disclosed
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ GCF website

Updated in EWS Nov 22, 2022

Disclosed by Bank May 26, 2020

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the implementing agencies, the project will offer long-term loans for farmers to invest in highly productive, climate-resilient and low-emission practices. The loans will be granted to small farmers and large producers of soybeans and / or livestock, and will be conditional on maintaining the existing forest cover on farmland and ranches.

The project will allow at least 300 producers in Paraguay to access personalized credit lines, using the reimbursable and non-reimbursable funds of the GCF. This will help reduce emissions from deforestation and increase food, water and health security.

The project will promote sustainable development with low emissions by increasing the productivity of livestock herds, due to better practices in animal husbandry, thus reducing the intensity of emissions per unit of production (tCO2e / kg of meat).

It will also incentivize the expansion of soybean crops in degraded areas rather than on forested land. Finally, the project will help Paraguayan farmers to identify the relationship between GHG emissions, farm management, and system productivity.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

The program shall provide long-term and tailored concessional loans that will be made available through partner national financial institutions in Paraguay to private local farmers, as a way to incentivize the introduction of low-emission, climate-resilient production practices at scale, following specific eligibility criteria, including forest protection.

Loans are only made available for financing productive practices in the soy production and cattle ranching sectors if that results in emission reduction from deforestation and  increases the resilience of productive systems to climate vulnerability.


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

FMO Headquarters:
Anna van Saksenlaan 7,
2593 HW, The Hague,
The Netherlands

FMO has an Independent Complaints Mechanism

If you have a project-related complaint you can inform us about the problem in writing by letter or by filling out the online form on this page.

UNDP Office:
World Trade Center,
Asunción, Paraguay

UNDPs Stakeholder Response Mechanism,successfully%20resolved%20issues%20of%20concern.

Mezas de Finanzas Sostenibles Office:
Avenida Santa Teresa Nº 3088y,
Asunción, Paraguay


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How it works