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Investing in Regeneration

Uruguay’s grasslands as an impact finance model

When Althea Ganly looks across her family’s land in Uruguay’s Savannah, she sees more than cattle and grass; she sees resilience, responsibility, and heritage. The grasslands of Uruguay, part of the extensive Pampas ecosystem that spans Argentina, Uruguay, and southern Brazil, have long supported local economies, cultural identities, and remarkable biodiversity.

However, these grasslands are critically endangered. Approximately 80% of Uruguay is dedicated to cattle ranching, both on natural and artificial grasslands. Overgrazing, monoculture soy production driven by international demand, and invasive species have led to significant soil erosion and habitat loss. Iconic local species, including giant anteaters and jaguars, have faced local extinctions.

Uruguay grasslands landscape

This ecological and economic crisis is being addressed by the Uruguay Grasslands Regeneration Project — a pioneering collaboration that Althea co-founded, leveraging regenerative economic ecosystems to restore the grasslands.

Uruguay grasslandsWhy grasslands matter

Grasslands, often overlooked compared to forests, cover 40% of the Earth’s land area and store over 30% of terrestrial carbon. Yet, globally, half of all grasslands have been degraded, severely diminishing their environmental and economic value. Regenerative grassland management practices restore soil organic carbon (SOC), essential for soil fertility, water retention, nutrient cycling, and climate change mitigation.

The Uruguay Grasslands Regeneration Project demonstrates how regenerative economic models can create ecological, social, and financial value, benefiting farmers, investors, markets, and ecosystems simultaneously. This model emphasizes the importance of understanding complex ecological and economic dynamics to maximize impact and reduce risks.

Inside the Uruguay Grasslands Regeneration Project

The project spans 140,000 hectares across 125 family-owned ranches, anchored by the principle that financially empowered land stewards are most effective in ensuring landscape resilience. Ranchers employ Voisin’s Rational Grazing (PRV) and Holistic Planned Grazing (HPG), which manage grazing cycles to enhance soil regeneration and carbon sequestration. This approach directly links regenerative practices to measurable carbon credit revenues.

An integrated regenerative ecosystem

The project functions through interconnected nodes:

  • Uruguay Grasslands Regeneration Project LLC (SPV) manages carbon credit rights and revenue distribution to ranchers.
  • Cultivo Land PBC provides Monitoring, Reporting, and Verification (MRV), converting ecological data into investor-grade reports.
  • Pampa Oriental®, a Savory Hub, delivers rancher training and ecological monitoring.
  • Verra validates carbon credits, ensuring transparency and market credibility.
  • The Savory Institute facilitates connections between stakeholders, strengthening systemic capacity.

Cattle on Uruguay grasslandsEach node plays a distinct but complementary role:

  • Ranchers apply regenerative practices, generating ecological outcomes monetized through carbon markets.
  • Pampa Oriental® supports ranchers with training and robust ecological measurements.
  • Cultivo translates data into actionable reports, creating feedback loops to enhance regenerative practices.
  • Verra ensures carbon credits meet stringent global standards, maintaining market trust.
  • Investors and buyers seek verified climate outcomes and transparent impact reporting.

This ecosystem depends on trust, transparency, and coordinated relationships. However, the interconnectedness introduces risks — issues like credibility gaps or certification inconsistencies can significantly affect the ecosystem’s resilience, as demonstrated by previous global carbon market challenges. Designing regenerative ecosystems for systemic resilience through redundancy, adaptability, and transparency is essential for long-term success.

Impactful outcomes and scalable change

The project targets annual carbon sequestration of approximately 290,944 tCO?e, comparable to removing 67,000 cars from the road each year. With a carbon price of $15 per ton, ranchers could receive around $30,000 annually per 1,000 hectares — significantly bolstering their financial stability, particularly in economically challenging periods.

Additionally, meeting standards such as Regenerative Organic Certified (ROC) opens new premium market opportunities for ranchers, further improving economic outcomes.

If effectively scaled, this model offers global relevance, adaptable to diverse cultural and ecological contexts.

Yet, the project’s benefits extend beyond economics. Ranchers report healthier soils, better water retention, and improved livestock health, nurturing a new generation dedicated to regenerative practices.

Uruguay grasslands

If effectively scaled, this model offers global relevance, adaptable to diverse cultural and ecological contexts. Uruguay has the potential to set a global benchmark for combining land stewardship, carbon finance, and rural resilience.

As one participating rancher summarizes: “We’re not just managing livestock. We’re healing ecosystems, addressing water crises, providing food security, confronting climate change, and preserving our land for future generations.”

The Uruguay Grasslands Regeneration Project exemplifies a living regenerative economic ecosystem, illustrating a practical path toward systemic, sustainable, and economically viable solutions.

Dr. Dan Gordon is Board Chair of the Colleaga global impact fund and venture collaboratory, fostering collaborative impact investment and networked innovation for UN Sustainable Development Goals. Dan focuses on sourcing, financing and accelerating platform companies that aim to deliver scalable regenerative systems improvement.

This article was produced in collaboration with the Magazine's Content Partners.

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