FAO proposes innovative financial solutions to accelerate the transformation of agrifood systems

The Regional Office of the Food and Agriculture Organization of the United Nations (FAO) for Latin America and the Caribbean presented four initiatives that bring together innovative financing mechanisms to transform agrifood systems.

Innovative financial mechanisms are instruments that combine different sources of financing and distribute risks to attract and multiply investments, such as blended finance, green and climate bonds, guarantee and first-loss funds, and public–private partnerships. Their purpose is not to replace traditional cooperation but to strengthen and expand it.

The presentation of the initiatives took place during the opening event Unlocking Finance for Agrifood Systems Transformation, hosted by FAO Transforma 2025, an initiative that brings together technical capacity, financing pathways adapted to local realities, political will, and strategic positioning to advance concrete initiatives that contribute to the achievement of the Sustainable Development Goals, promoting Better Production, Better Nutrition, a Better Environment, and a Better Life, leaving no one behind.

The initiative also aligns with regional governance frameworks, including the FAO Regional Conference for Latin America and the Caribbean, which helps guide policy coherence and institutional coordination for agrifood systems transformation across the region.

“Today we are brought together by a central and urgent issue: how to unlock, align, and leverage financial resources to accelerate the transformation of agrifood systems," stated the newly appointed Assistant Director-General and Regional Representative of the Food and Agriculture Organization of the United Nations (FAO) for Latin America and the Caribbean, Rene Orellana Halkyer, at the beginning of the event. "We know that without more agile and innovative financial mobilization, it will not be possible to achieve the structural change that the region and the world need.”

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