A conversation with Philip Kauders, CEO and co-founder of Courageous Land, working on reforesting landscapes via large-scale biodiverse agroforestry. 

We can invest hundreds of millions into regenerative agroforestry, maybe even billions. No, we don’t need new regulations or new technology (drones that prune, for example— sure, they’ll help, and they’ll come, but they’re not essential). According to Philip the puzzle pieces for making large scale multi strata agroforestry systems are there. The place: Brazil. The land: the former rainforest which is currently bare or maybe grazed a bit, so underperforming financially and ecologically ecosystems. The knowledge is there because of 10000 years of agroforestry experience- the Amazon is a managed agroforestry system-, the financial system is ready because agroforestry is a thing in Brazil. Companies are sourcing products from these systems, bankers are investing, and large-scale projects are already on the ground.

The missing link? The game changer which might make real scale possible? Carbon credits. I know what you thinking about the voluntary markets and the scandals, but regen agroforestry systems are amazing carbon sinks. And many companies—especially tech giants with high margins—have made massive climate commitments and continue to buy high-quality carbon credits. That demand makes many of these projects investable, bankable and scalable.
Of course, it’s not all rainbows and unicorns—there are plenty of challenges ahead. But the main point is: we know what to do, and we know how to do it. So… what are we waiting for?

[Courageous Land’s Agroforestry Intelligence Platform™️ helps partner agroforestry projects with planning, financing, management and sales. Philip began his career at Goldman Sachs in New York before moving to Private Equity at Tarpon Investimentos in Brazil.]

WHY AGROFORESTRY ALREADY MAKES INVESTMENT SENSE, ESPECIALLY IN BRAZIL

Philip explains that agroforestry combines agricultural revenue with carbon credits, creating a dual-income stream that enhances financial viability. Brazil’s climate and scalable systems further boost returns.

“It’s an absolute game changer. I think that it’s something that is an internalization of a positive externality and it’s something that makes it is the difference between a project being sufficiently financially attractive or not, basically.” Philip Kauders

“One of the advantages of agroforestry is that the majority of the revenue still does come from the agricultural piece of it. It’s the icing on the cake. It helps the carbon is the icing on the cake. It helps it become more attractive.” Philip Kauders

WHY AGROFORESTRY IS SUCH A DEVELOPED SECTOR IN BRAZIL

Brazil’s climate, biodiversity, and cultural embrace of agroforestry make it a hotspot. Philip highlights its mainstream appeal, including media representation.

“I think agroforestry, given that it’s a polyculture, you’re planting multiple species there’s a lot of opportunities to optimize carbon sequestration, whether it’s through pruning that can then be converted into biochar or things like this. There’s plenty of options for going beyond the traditional carrying capacity of the land. [In Brazil] given the weather and the year-long growing conditions, you can sequester at least twice as much carbon per per hect per acre per year versus, let’s call it, northern colder climate.

“[Agroforestry] was actually the theme of one of the most recent soap operas that’s watched by millions of people on the main TV station here. People are quite interested in it… I have not seen this level of interest in other countries.” Philip Kauders

HOW CARBON CREDITS ARE A GAME CHANGER AND MAKE AGROFORESTRY PROJECTS INVESTABLE

Carbon credits transform agroforestry by internalizing environmental benefits, bridging funding gaps, and attracting institutional investors.

“So what can happen is you can either have a corporate that wants the future carbon credits, invest upfront into the project, and then they will be the partner in the project and they will have the future carbon credits used to offset their emissions. Or you can have a player that wants to pay for the carbon upon delivery and offtake agreement, and then you have a contract that is essentially a receivable, and then you can take that to a bank and get the financing upfront. ” Philip Kauders

ROLE OF TECHNOLOGY, AI, AND MODELING IN UNLOCKING INVESTMENTS IN AGROFORESTRY

Philip emphasizes how technology streamlines planning, financing, and management, making large-scale agroforestry feasible.

“The software product that we launched is called a diagnostic. Essentially any piece of land, starting in Brazil, you just need to upload the shape file or draw it on the map. And then within 25 seconds we have a report with everything that you really need to know about that piece of land and its potential for agroforestry. So it shows the total number of hectares eligible for carbon credits, the species that would be the best species to plant there, altitude maps, rainfall patterns, the expected weather now and in 2040, biodiversity numbers, soil type, irrigation potential, like everything you can possibly imagine. This report we give for free to anyone in Brazil.” Philip Kauders

OTHER POINTS DISCUSSED:

Koen and Philip also talked about

• Why you shouldn’t rely on carbon credits alone
• What are the big bottle necks in scaling agroforestry in brazil

LINKS:

• Courageous Land
• Feeding Tomorrow documentary

LINKED INTERVIEWS:

• Jonas Steinfeld – The many shades of green of agroforestry systems
• Fernando Russo – From selling Playboy’s to growing coffee, cacao, credit and lots of cows
• Paul McMahon – Why regen forestry is natural capital’s Trojan horse for institutional investors
• Felipe Pasini – Walking the land of Amadeco Syntropic Farm with a regenerative farmer

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The above references an opinion and is for information and educational purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.