Pathways to Scaling Restoration Finance: The Organic Opportunity
Agri-food systems account for one-third of global greenhouse gas emissions and are major drivers of land degradation, biodiversity loss, and water depletion. Tropical commodity value chains are particularly impactful—tropical regions account for 95% of global deforestation, with agriculture as the primary driver.
Transforming these systems is therefore critical for global restoration. Yet the sector remains severely underfunded. Aligning agri-food systems with a low-emissions, climate-resilient pathway requires $1.1 trillion annually, while less than 5% of global climate finance is directed to it.
In recent years, certification schemes—such as Fairtrade, Rainforest Alliance and organic—have emerged as mechanisms to channel finance into restorative agriculture. But with so many competing standards, a key question remains: which approach offers the most effective and scalable pathway for financing restorative agricultural practices?
Organic Models at Work: Insights from MRTA
Over the past two years, Regeneration’s Market Readiness and Technical Assistance (MRTA) Facility has been exploring the role of organic farming in attracting private finance for restoration. By supporting restorative agribusinesses—over a quarter of which are organically certified—MRTA has been helping them to secure investment and premium off-take agreements. Additionally, as a large share of MRTA’s portfolio already follows organic practices, MRTA has been helping these businesses overcome certification and market barriers and secure fair compensation for their commitment to sustainability.
As per IFOAM Organics, “organic agriculture is a production system that sustains the health of soils, ecosystems, and people.” Instead of using synthetic fertilisers and pesticides, it relies on “ecological processes, biodiversity and cycles adapted to local conditions”. They often integrate regenerative practices like composting, crop rotation, and cover cropping to build long-term soil fertility and resilience, making organic agriculture well-suited to land restoration. Certifications such as EU Organic and USDA Organic help ensure these standards are met.
Reflecting on MRTA’s private finance mobilisation outcomes, organic agriculture has emerged as a key competitive advantage within the portfolio. Nearly 25% of capital mobilised to date has supported organic models, including deals in macadamia, fresh avocado, avocado oil, and cocoa. Building on this experience, it is critical to explore why organic agriculture is increasingly attracting interest from both off-takers and investors.
Biofarms EPZ, a leading Kenyan avocado processor and exporter, has seen strong gains from its organic avocado line—commanding premium prices while promoting sustainable farming practices. Source: Regeneration.
Driving Business Resilience: Organic as a Climate-Smart, Nature-Positive Investment
Based on our experience on MRTA, organic systems are increasingly emerging as a lever for business resilience—restoring natural capital and embedding climate adaptation into production systems.
By safeguarding water resources and rebuilding soil health, organic farming enhances supply chain resilience while helping businesses avoid regulatory and reputational risks. Organic systems eliminate synthetic nitrogen fertilisers, a major contributor to water pollution, helping to safeguard aquatic ecosystems that support rural livelihoods. At the same time, natural inputs improve soil structure and water retention, which can lower input costs and help stabilise yields during droughts and other climate extremes—now increasingly important as more than one-quarter of global crops are grown in highly water-stressed regions.
Furthermore, biodiversity gains from organic farming help maintain the natural functions that support healthy, productive landscapes over time. Organic farms support over 30% more biodiversity than conventional systems, enabling natural pest control and pollination. This reduces dependence on chemical inputs and reinforces ecosystem services that underpin long-term productivity and land value. With 55% of global GDP reliant on nature, investing in organic models is not just environmentally sound—it’s a strategic move to future-proof agri-businesses.
Additionally, organic systems contribute to climate goals and regulatory readiness. By replacing environmentally degrading fertilisers with green alternatives, organic systems cut emissions, enhance soil carbon sequestration and create closed-loop nutrient cycles. As well as strengthening on-farm climate resilience, this helps businesses stay ahead of tightening climate disclosure rules, which are rapidly becoming mandatory. Once all pending regulations take effect, these disclosures will apply to nearly 40% of the global economy—making climate-smart practices like organic farming a strategic advantage.
“Organic avocado production has not only enabled us to access premium export markets, but also strengthened our commitment to sustainable agriculture. By working closely with smallholder farmers and adhering to organic standards, we are improving soil health (and) protecting ecosystems.”
Unlocking Business Growth: Tapping into the Emerging Organic Market
Organic agriculture not only delivers clear climate and nature benefits that build long-term business resilience—it is also a fast-growing, investable sector offering strong commercial returns. With rising consumer demand and strong markets forming, organic farming presents a compelling opportunity for businesses looking to align profitability with sustainability.
Driven by a long-term shift toward health-conscious and environmentally responsible consumption, the organic sector continues to show robust growth. With a projected global CAGR of 13.9% between 2024 and 2030 for organic food and beverage, businesses entering this space are well-positioned to capture expanding market share. In line with this, strong markets for organic products are forming. The United States remains the largest organic market (€59.0 billion), followed by Germany (€16.1 billion) and China (€12.6 billion). High per capita spending in Switzerland (€468) and strong market penetration in Denmark (11.8% of total food sales) also signal mature consumer bases and premium pricing potential.
Not only is there growing demand, but organic-certified producers are also scaling rapidly, creating a robust pipeline for sourcing and investment. By the end of 2023, 98.9 million hectares were under organic management globally—a 2.6% increase from 2022. Africa led with a 24% growth rate, highlighting strategic souring opportunities in emerging economies.
Workers on ABOCFA’s organic cocoa farm in Ghana, where cocoa is cultivated through a diverse agroforestry system without the use of chemical inputs. Source: Cocoa Runners.
From Soil to Security: Organic as a Pathway to Inclusive Business Growth
Beyond its limitations as a mainstream market however, organic presents a compelling opportunity not only in terms of its growth potential, but as a pathway to inclusive business growth: delivering greater value to the smallholders who anchor these supply chains.
By expanding market access and securing price premiums—ranging from 20% to 82% above conventional rates—smallholders can significantly boost their income and quality of life. One study on the organic coffee value chain found that certification was linked to a 75% increase in net coffee revenue, equivalent to 12.5% of average household income.
While much of the income boost from organic farming comes from access to premium prices through certification, even non-certified organic practices can be rewarding due to productivity gains. One study found that non-certified organic coffee farmers saw a 9% increase in net revenue— mainly due to higher yields per tree. A joint report by UNCTAD and UNEP, covering 114 organic projects across Africa, reported average yield increases of 116%, and 128% in East Africa alone. In this respect, while organic farming is often associated with short-term yield reductions, these findings highlight the potential for long-term gains.
These improvements create shared value across the supply chain—not only by boosting supply volumes and margins, but also by enhancing social compliance and strengthening overall resilience. By integrating smallholders into organic systems, agribusinesses can better meet growing demands for social impact, traceability, and responsible sourcing—key pillars of ESG reporting and compliance with emerging due diligence regulations. At the same time, they gain access to a more resilient, high-performing supply network that supports long-term, sustainable business growth.
“Organic cocoa farming is not just about avoiding chemicals—it’s about nurturing the land, empowering farmers, and building a future where communities thrive through sustainability and fairness.”
From Potential to Practice: What’s Holding Organic Back?
Despite the clear benefits of organic systems for both smallholders and agribusinesses, many farmers struggle to fully capitalize on these opportunities.
One of the biggest obstacles to organic farming is the lack of financial incentives. Transitioning to organic farming often involves upfront costs and short-term yield reductions, making it a risky move without guaranteed market access or financial backing. This challenge is compounded by a lack of reliable data—there’s limited robust, comparable evidence on how organic systems perform economically and environmentally. Without this, it’s harder to attract investment or prove that organic farming can scale.
Additionally, achieving certification can be inaccessible and administratively demanding for many smallholders. A lot of farmers—especially in the Global South—lack access to farmer-friendly advisory services or learning platforms that could guide them through the process. Without this support, the transition to certified organic remains unreachable, leaving many “organic by default” without the proper verification to reap the benefits.
Limited market access can also prevent smallholders from capturing high premiums, disincentivising organic practices. Organic value chains tend to be weaker than conventional ones, with fragmented infrastructure for processing, aggregation, and distribution—raising the risk of cross-contamination and blocking access to premium markets. Buyer-supplier networks are also less developed, with buyers often reliant on intermediaries, increasing costs and reducing the value captured by producers. In some cases, poor market access forces farmers to sell certified produce as conventional, undermining their commitment to organic.
These challenges are compounded by the organic market’s limited scale—despite gaining momentum, it remains positioned as a premium offering, restricting its potential to become a mainstream standard. Affordability and accessibility remain key challenges, indicating that while the segment is likely to expand as a high-value niche, it may be limited in scale. In fact, as of 2025, organic products account for less than 0.2% of the global food and beverage market, underscoring the gap between consumer interest and widespread adoption. In periods of economic downturn and financial volatility especially, consumer price sensitivity tends to drive demand toward lower-cost alternatives, reinforcing the barriers to widespread adoption.
Finally, there are concerns whether organic certification alone can deliver the restoration outcomes we need. Organic standards don’t automatically address broader environmental issues like deforestation. To unlock its full potential, organic agriculture must thus be integrated with complementary policies and regulations—such as the EU Deforestation Regulation (EUDR)—to ensure a more holistic and sustainable transformation of land use and food systems.
An organic smallholder farmer supplying Biofarms EPZ. Source: Regeneration.
Unlocking the Organic Opportunity: A Call to Action
Therefore, despite its potential, scaling organic agriculture faces several persistent barriers. To realize organic agriculture as a pathway for mobilising restoration finance, coordinated action is therefore essential. Governments, companies, and financial institutions each have a critical role to play in creating the enabling conditions, incentives, and investments that make organic systems viable, profitable, and resilient at scale.
Governments play a critical role in enabling adoption through policy, investment, and farmer engagement. Investing in inclusive advisory services—such as peer-to-peer learning and demonstration farms—can build local capacity and resilience. Public procurement policies that prioritize organic products can anchor demand, while subsidies or performance-based payments can accelerate adoption.
Off-takers are essential partners in building strong, inclusive organic value chains. By supporting smallholders, co-investing in certification and training, and raising consumer awareness about the benefits of organic, businesses can strengthen supply chains and build trust. Transparent and equitable sourcing models not only support ESG goals but build long-term, resilient farms.
Financial institutions have the power to unlock scale by reducing risk and funding transition. By financing certification, infrastructure, and farmer training, they can catalyse adoption and de-risk investment. Strategic capital flows into organic agriculture deliver returns beyond profit—supporting climate resilience, biodiversity, and rural livelihoods.
Ultimately, scaling organic agriculture will depend on practical collaboration and targeted investment. Now is the moment to align efforts and scale solutions that deliver both environmental and economic value.