Policy Briefing #28. Agroforestry and the Sustainable Finance Initiative

This Policy Briefing responds to an EU consultation (17.10.23) on the Sustainable Finance Initiative taxonomy. It focuses on the need for agroforestry to be recognised alongside forestry and wetland restoration in Annex 1 of the Initiative (the “taxonomy”). For the purposes of the SFI, “agroforestry” will describe the planned use of trees and shrubs on agricultural land. Given the correct incentives it 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”. Agroforestry was recognised in Article 4 of the CAP Strategic Plan Regulation, and national definitions are given in the CAP Strategic Plans of all Member States.  We suggest that agroforestry should be included in Annex 1 of the SFI  “Climate Delegated Act” as a new section titled “2.2 Agroforestry Establishment and Restoration”. Technical screening criteria are suggested for: agroforestry plans, climate benefit analysis, guarantee of permanence, audit and group assessment.