Overview

The Latin American Climate Resilient Coffee Facility (LATTE) is a USD 30M blended finance facility that channels capital through agri-fintech lenders to finance climate resilience measures for small coffee producers across Colombia, Honduras, and Mexico. The facility channels capital through agri-fintech lenders to finance investments that help farmers adapt to climate risks and strengthen the long-term sustainability of coffee production.

The problem

Climate change is increasingly threatening coffee production in Latin America through rising temperatures, erratic rainfall, pests, and declining soil health. Without adaptation, many coffee-growing areas could become unsuitable, pushing production into higher-elevation forests and increasing deforestation. Smallholder farmers often lack access to the financing, technical support, and incentives needed to adopt climate-resilient practices, putting their livelihoods and the long-term sustainability of coffee supply chains at risk.

The Solution

LATTE, proposed by IDH Invest, the integrated investment arm of IDH, is a blended finance facility that combines concessional and private capital to support climate-resilient measures in coffee production across Latin America. The facility channels financing through agri-fintech lenders and agricultural businesses to help farmers adopt climate-smart practices such as regenerative agriculture, soil restoration, and improved water management. Outcome-based payments from coffee companies and a technical assistance facility will further support adoption, strengthen farmer incomes, and help scale climate adaptation across coffee landscapes.

“The Lab’s climate finance and blended finance expertise will help refine LATTE’s capital structure, including modelling the investment and setting tranches within one facility.”

Evgenia Sokolova, Program Director, IDH Invest.

Target Impact

According to IDH Invest, the Facility aims to strengthen climate resilience in coffee-producing regions of Latin America by enabling farmers to adopt climate-smart practices such as regenerative agriculture, soil restoration, and improved water management. By supporting adaptation investments and expanding access to affordable finance, the facility seeks to improve farm productivity and stabilize incomes, while reducing pressure on forests. These efforts are intended to strengthen the long-term sustainability of coffee supply chains while supporting more resilient livelihoods for smallholder producers.