InfoSAWIT, MEXICO CITY – Prolade, a producer of sustainable palm oil from Mexico certified by the Roundtable on Sustainable Palm Oil (RSPO), has successfully closed a debt financing deal worth USD 15 million. This funding marks IDB Invest's first investment in the palm oil sector. IDB Invest is a leading financing institution based in Washington, D.C., supporting social, economic, and institutional development in Latin America and the Caribbean.
The signing of the agreement took place in Mexico City, attended by IDB President Ilan Goldfajn, Prolade CEO Luis Tejado, and RSPO's Deputy Director for Latin America Camilo Santos, along with representatives from the Canadian Climate Fund for the Americas (C2F) and the Finland-LAC Mixed Financing Climate Fund (FINLAC).
As a member of RSPO, Prolade is committed to producing palm oil that meets the highest environmental and social standards. The funds will be used to expand operational land by 2,000 hectares, implement advanced irrigation systems, and strengthen relationships with local communities while ensuring environmental sustainability. This project is projected to reduce CO₂ emissions by up to 1.23 million tons over 25 years, prevent deforestation, and create economic opportunities in rural areas of Mexico.
In its journey towards sustainability, Prolade emphasizes the importance of relationships with local communities. Prolade's COO, Marco Lucas, highlighted the company's transparent approach from the project's inception. "We engage directly with community members to explain our goals and the positive impacts we aim to achieve. Open dialogue is key to building trust," Marco stated, as reported by InfoSAWIT on Tuesday (December 31, 2024).
This trust has yielded tangible results, including the emergence of new services such as transportation, home renovations, and the development of small businesses like restaurants and shops around the project area.
Prolade utilizes degraded land to create productive palm oil plantations, producing high-quality RSPO-certified palm oil for the Mexican market. With technical support from IDB Invest, Prolade has developed an Environmental and Social Action Plan (ESAP) that includes biodiversity assessments, land acquisition procedures, community relations management, and pollution control.
Additionally, Prolade has adopted innovative programs using biochar to improve soil quality and introduced a Corporate Governance Action Plan to enhance decision-making and risk management.
As the second-largest economy in Latin America, Mexico has significant potential for sustainable palm oil development. By utilizing degraded land, Prolade demonstrates that agricultural practices can align with environmental sustainability and responsible consumption.
Prolade, together with IDB Invest and supported by RSPO, continues to drive positive change, fostering sustainable growth that benefits communities and the environment while serving as an example of how the agricultural sector can evolve responsibly. (T2)