Climate Change Mitigation Credit Line for Dairy Sector
Kenya’s Agriculture Sector Transformation and Growth Strategy chose the dairy sector as one of 13 agricultural value chains with high potential for transformation. Although the sector provides numerous benefits to smallholder farmers, it is also an important contributor to greenhouse gas emissions. Numerous options exist to sustainably increase dairy production efficiency, for example by improving the quality and availability of feed resources, or by improving genetics and animal health. Lack of access to finance hinders the adoption of these practices. This project aims to create a credit line for the sector that offers favorable terms conditional on greenhouse gas emission reductions and other co-benefits. UNIQUE was selected to design the credit line, which included the development of a monitoring reporting and verification (MRV) methodology.
- Identification of potential finance partner and loan recipients
- Identification of investments and development of credit products along the value chain
- Design of the credit line including plans for technical assistance
- Design of an MRV system including collection of baseline data