As some individual farmers hold back on committing to decades long land use agreements, private capital portfolios can play a role in looking long-term to help the sector decarbonize.
A carbon credit with inherently questionable value is no good for the climate or the sector but it is also no good to throw the baby out with the bathwater.
The firm’s natural capital vehicle has invested in a 400ha regenerative almond project in Spain, while its carbon strategy has backed the two million ha Restore Africa initiative.
With natural assets still waiting to be correctly valued, ‘a huge arbitrage opportunity will exist for the investors that are willing to lean in,’ StepStone says.