Agriculture and agri-business place significant pressure on the environment and natural resources. It is essential that Europe encourages sustainable farming.
The Nouvelle-Aquitaine region in France has suffered a lot from climate change. It is a major agricultural area with more than 70 000 farms. To preserve the environment and provide people with a high-quality food system, the region has made it a priority to foster sustainable agricultural and agri-business processes, under its Neo Terra programme.
As highlighted by a feasibility study carried out by the Bank’s advisory team under the fi-compass platform, ecological investment projects in Nouvelle-Aquitaine face difficulties obtaining finance. Financing sustainable agriculture can be considered risky by banks, because it implies changes in business models and there can be uncertainty about investment returns and outcomes.