Climate Bonds and the Good Food Institute partner to advance sustainable finance for alternative proteins

The Climate Bonds Initiative and the Good Food Institute (GFI), together with GFI Europe, have signed a Memorandum of Understanding (MoU) to accelerate investment in climate solutions across agrifood systems. GFI is a nonprofit think tank building a more sustainable food system by accelerating progress for plant-based, cultivated and fermentation-enabled proteins. The MoU outlines three key areas of collaboration: activating data, synergising knowledge, and mobilising stakeholders.

The agreement will support the identification of companies within the alternative proteins sector with potential eligibility for Certification under the Climate Bonds Standard. Through joint engagement and the exchange of data and insights, the collaboration aims to scale sustainable finance and catalyse capital flow across the sector.

Under the MoU, Climate Bonds will provide GFI and GFI Europe with relevant data and analysis from its green, social, sustainability, and sustainability-linked (GSS+) bond database, to identify financing flows and opportunities linked to alternative proteins and methane abatement. In parallel, GFI will contribute sector expertise, research, and market insights to inform Climate Bonds’ engagement across agrifood innovations.

Why food systems matter for climate action

Conventional meat production is a major contributor to climate change and biodiversity loss, responsible for 60% of agrifood system emissions and close to 20% of global greenhouse gas emissions. Despite this, it only provides 17% of global calories and 38% of protein. 

Addressing this challenge is critical to achieving global climate goals. Scaling the production and consumption of sustainable, low-GHG protein sources, including plant-based, cultivated and fermentation-enabled meat, represents a key pathway to reduce methane emissions and support more resilient food systems. As a result, alternative proteins are emerging as a high-potential sector for climate-aligned investment, as recently singled out by WEF analysis as “high-growth market for manufacturers”. 

Shaping a climate-friendly food future

Alternative proteins offer a scalable and sustainable way to meet growing global food demand while reducing environmental impact. In many cases, these products outperform even the lowest-emission animal-based alternatives.

In April 2025, Climate Bonds launched its Alternative Proteins Criteria, the first dedicated framework for certifying investments in sustainable protein solutions.

These science-based Criteria align investments with the 1.5°C goal by defining clear eligibility for Climate Bonds Certification. The framework aims to channel capital toward credible green finance instruments, including in bonds’ Use of Proceeds (UoP) and  Sustainability-Linked Debt (SLD), while ensuring measurable climate impact.     

The scope of the Criteria covers a range of alternative protein sources for human consumption, including plant- and fungi-based proteins, fermentation-derived proteins, cultivated meat, and blended products, which combine alternative proteins with conventional meat.

Through this collaboration, Climate Bonds and GFI will work to identify issuers aligned with the Criteria and support the development of granular investable opportunities across the alternative proteins value chain.

Reyes Tirado, Agri-Food Standard Lead, Climate Bonds Initiative

“Redirecting capital towards alternative proteins is essential to reducing emissions from food systems. This collaboration combines Climate Bonds’ standards and GFI’s expertise to support credible issuers in accessing the investment needed to scale solutions.”

Maille O'Donnell, Sr. Policy Specialist, Public Investment and Industry, the Good Food Institute

“Alternative proteins are among the highest-potential climate solutions in food systems, but, to date, they’ve been markedly underrepresented in green finance. By partnering with Climate Bonds Initiative, we can unlock new capital pathways and accelerate the scale needed to meet global climate targets.”

By combining Climate Bonds’ expertise in sustainable finance with GFI’s leadership in alternative protein research and policy, the partnership aims to unlock investment in innovative food solutions that contribute to climate mitigation and the transition to more sustainable agrifood systems.

Till' next time,

Climate Bonds