Prolade, a Mexican producer of sustainable palm oil, has secured $15 million in debt financing from IDB, the Inter-American Development Bank.
The announcement marks IDB Invest’s first investment in the palm oil sector, with IDB president Ilan Goldfajn joining representatives from Prolade, the Roundtable on Sustainable Palm Oil (RSPO), Canadian Climate Fund for the Americas (C2F) and the Finland-LAC Mixed Financing Climate Fund (FINLAC) at the signing ceremony in Mexico City.
The funding will enable Prolade to expand its operations by 2,000 hectares, as well as introduce advanced irrigation systems, while also bolstering its commitment to local communities and environmental sustainability.
Prolade’s responsible agricultural practices will help to reduce CO2 emissions by 1.23 million tonnes, prevent deforestation, and create employment opportunities in rural communities in Mexico, the RSPO said in a statement.
Direct communication
“When we began implementing our projects, we spoke directly with community members to explain our intentions and the positive impact we hoped to achieve,” commented Marco Lucas, COO of Prolade. “I understood that it was crucial to be present and listen to their concerns. This open dialogue was essential.
“Through communication and transparency, we have built a stronger, more collaborative relationship. The community is more willing to engage because they’ve seen the results of our work. This experience has taught us that trust is built gradually and is vital for project success.”
Environmental stewardship
Prolade’s environmental stewardship is also highlighted through the company’s use of previously deforested land for palm oil cultivation.
The company’s Environmental and Social Action Plan (ESAP), developed with technical guidance from IDB Invest, includes measures for biodiversity protection, community relations, and pollution control, while a biochar program has been implemented to improve soil quality.
‘As the partnership progresses, Prolade and IDB Invest are poised to drive impactful change, fostering sustainable growth for both the region and its communities, with the RSPO playing a critical role in supporting their efforts,’ the RSPO noted. Read more here.
