Andean Cacao: Advancing Climate Finance for Agroforestry in Colombia

Andean Cacao, in partnership with RRG Nature Based Solutions and Terra Global Capital, completed the validation and verification under Verra of its landmark regenerative agroforestry system with multiple species (cacao trees, shade trees, wind barriers, cover crops). The Afforestation, Reforestation, and Revegetation (ARR) project, will issue VCUs with Climate, Community and Biodiversity (CCB) verification, including exceptional (gold) climate adaption benefits.

Andean Cacao leads the implementation, establishment and maintenance of the diversified agroforestry system, financed by an institutional investor. By converting degraded pastures, the project improves soil health, creates habitats for biodiversity to thrive, and reduces the use of inputs and consumption of water. The implementation approach trains and employs local workers to work on the project’s farms and includes outreach to a network of smallholders that helps to improve their farming practices.

The carbon revenue from monetizing these high-quality, multiple-benefit VCUs delivers valuable climate finance for the project. The first issuance will generate over 56,000 VCUs and, with the growing market demand for high-quality ARR credits, will generate valuable carbon revenue for the project. The successful validation and verification of this ARR highlights Terra’s role in expanding from a globally respected jurisdictional REDD+ developer into one of ARR projects, including agroforestry, reforestation for conservation, and restoration, including in blue carbon. “Terra Global is proud to have worked with Andean Cacao on this significant milestone and looks forward to the completion of the next ARR project with RRG Nature Based Solutions, which is in the final stages of validation and verification with the VVB, using Verra’s new VM00047”, said Leslie Durschinger, Founder, CEO, CIO of Terra Global.

The initiative delivers measurable benefits across communities, climate, and biodiversity. “Andean Cacao is proud to be the first large-scale cacao project to a reach this milestone, demonstrating that carbon credits are not only a tool for climate finance but also tangible proof that sustainable agriculture is a powerful climate solution. Through the certification journey, we gained the tools and expertise to monitor and report benefits beyond carbon, ensuring lasting value for rural communities and the ecosystems where they operate,” said Carolina Camacho, Sustainability Manager Andean Cacao.

Thus far, 880 hectares of diversified agroforestry systems have been established as part of the 1,764-hectare agroforestry system designed to recover degraded land and create ecological corridors. These corridors strengthen species diversity and habitat connectivity while aligning agricultural production with conservation goals. On the community side, the project employs more than 400 local workers under long-term contracts with additional benefits such as food vouchers, education opportunities, and access to recreational activities, while more than 120 smallholder farmers outside the project area have diversified their cacao plots, adopting sustainable agricultural practices and selling their cacao Andean Cacao at stable and fair prices.

As demand for removal credits grows, Andean Cacao demonstrates how ARR can be community-driven, ecologically sound, and economically viable, setting a benchmark for future restoration efforts across Latin America.