• $1.2 billion MIGA guarantee to support small and medium farmers using climate-smart agriculture.
• 15 reinsurance partners join to mobilize private capital, enhancing MIGA’s investment guarantee capacity.
• Lloyd’s and MIGA target $20 billion in annual guarantees by 2030, driving sustainable development.

Lloyd’s and MIGA Boost Climate-Smart Agriculture with $1.2 Billion Guarantee

Lloyd’s, the world’s leading insurance marketplace, announced a formal partnership with the World Bank Group’s Multilateral Investment Guarantee Agency (MIGA) to accelerate climate-smart agriculture. This partnership, launched during New York Climate Week, provides $1.2 billion in guarantees to Banco do Brasil S.A., supporting loans to micro, small, and medium farmers. These farmers are engaged in no-till agriculture and other climate-friendly practices aimed at carbon sequestration and climate resilience.

The project, backed by 15 reinsurance partners, highlights the increasing role of private capital mobilization to support sustainability initiatives. By leveraging Lloyd’s reinsurance market, MIGA aims to expand its investment guarantee capacity, allowing investors to secure higher coverage levels for projects in developing countries. This partnership will also boost the World Bank Group Guarantee Platform, which plans to issue $20 billion annually in guarantees by 2030.

John Neal, CEO of Lloyd’s, emphasized the impact of this collaboration:
“Collaboration is the hallmark of the Lloyd’s market, and through our ongoing partnership with MIGA, the (re)insurance industry has facilitated projects around the world which are having a tangible impact on the local and national communities that need it most. By providing financial security for these loans, we can help to ensure that this work can continue for decades to come.”

Related Article: USDA Releases Updated Greenhouse Gas Methods Report for Agriculture and Forestry

Supporting Sustainable Development

The long-standing partnership between Lloyd’s and MIGA has supported projects aimed at economic growth, poverty reduction, and climate change mitigation across 22 countries. In FY24 alone, MIGA issued guarantees for 30 projects focused on climate change mitigation or adaptation.

Hiroshi Matano, MIGA’s Executive Vice President, highlighted the value of this collaboration:
“MIGA’s long-running collaboration with the Lloyd’s marketplace has brought significant benefits to both investors and host countries. Investors have gained access to larger levels of coverage for projects in developing countries, and host countries have benefited from higher levels of productive foreign investment. We look forward to many more years of partnership.”

As part of this effort, Lloyd’s and MIGA are working to support global projects that address both development and climate challenges, ensuring that vulnerable communities benefit from increased investment and resilience against future risks.