Authors: Jimena Calvo, María Marta Mokobodzki Ongaro, and María Florencia Merino.
Executive Summary
The study analyzes the functioning and prospects of voluntary carbon and biodiversity markets, as well as environmental certification schemes, with a focus on Argentina’s agricultural sector and its potential to support the transition toward regenerative practices. It describes key stakeholders, costs, processes, standards, and relevant regulations, while also examining the still-emerging state of the local market. In addition, the report explores sustainability-oriented financial instruments and the role of certifications as an intermediate strategy for accessing markets and strengthening productive capacities.
The research identifies several structural barriers faced by small-scale agricultural producers, including the high costs of project design and certification (around USD 80,000 or more), the need for a minimum operational scale (e.g., more than 1,000 hectares) to achieve viable returns, volatile and relatively low carbon credit prices (approximately USD 6–12 per unit), the limited development of the Argentine market, and the scarcity of methodologies specifically adapted to agriculture. In response to these challenges, the study argues that voluntary certifications and sustainability labels can serve as an intermediate step toward market access, improved competitiveness, and the development of capabilities in monitoring, compliance, and traceability.
The main findings of the study are summarized below:
The study identified a series of structural challenges that limit access to and the scaling of environmental market projects for small agricultural producers pursuing regenerative production practices, particularly within the Argentine context.
First, significant barriers arise from technical complexity and high entry costs. Developing projects that meet the requirements of international environmental market standards requires the involvement of specialized consulting firms for project design, quantification, and certification, with costs that can exceed USD 80,000 per project, not including the additional investment needed to implement on-farm improvements. This financial threshold effectively excludes smaller producers and actors with limited access to capital.
Second, business models associated with these instruments generally require minimum levels of territorial scale and environmental impact volume—typically exceeding 1,000 hectares—to generate sufficient emissions reductions or carbon sequestration to achieve a viable financial return. Such returns depend on both the volume of environmental certificates issued and their market price, which generally fluctuates between USD 6 and USD 12 per unit. In many cases, these prices are insufficient to offset project development, certification, transaction, and operational costs.
A third challenge is the limited depth of the local market. Unlike Europe and other more mature markets, environmental markets in Argentina and, more broadly, across Latin America remain in an early stage of development, characterized by the predominance of voluntary schemes, limited regulatory frameworks, and fragmented institutional arrangements. Sectors with significant potential contributions—such as regenerative agriculture—still lack methodologies fully adapted to their specific characteristics, in contrast to more established sectors such as renewable energy and reforestation.
In light of these constraints, the study identifies a more accessible intermediate strategy for small producers through voluntary sustainability certifications and labels targeted at international markets. These tools facilitate market access while strengthening capabilities related to compliance, traceability, monitoring, and continuous improvement. Among the most widely demanded certifications are GlobalG.A.P., HACCP, and Good Agricultural Practices (GAP) standards (IRAM 14110 and SENASA), as well as organic certifications (SENASA, USDA Organic, EU Organic, and Regenerative Organic Certified), fair-trade certifications (Fairtrade and Fair for Life), sustainable land-use certifications (LEAF and Rainforest Alliance), and environmental footprint standards (ISO 14064, ISO 14067, and ISO 14046). In addition, there are certification schemes tailored to specific regional agricultural economies.