Agroforestry and the Sustainable Finance Initiative

Policy Briefing #28 (v2) responds to an EU consultation on the Sustainable Finance Initiative. It focuses on the need for agroforestry to be recognised alongside forestry and wetland restoration in Annex 1 of the Climate Delegated Act of the SFI (the “taxonomy”). For the purposes of the SFI, "agroforestry" describes the planned use of trees and shrubs on agricultural land. Given the correct incentives, agroforestry can be a very attractive option for farmers and landowners who do not wish to change the legal designation of their land to "forest" through "afforestation".  Agricultural land was defined in Article 4 of the CAP Strategic Plan Regulation as including agroforestry, and agroforestry definitions are given in the CAP Strategic Plans of all Member States.  Agroforestry should therefore be included in Annex 1 of the SFI  "Climate Delegated Act" as a new section titled “2.2 Agroforestry Establishment and Restoration”. Possible technical screening criteria are provided, including: agroforestry plans, climate benefit analysis, guarantee of permanence, audit and group assessment.