Sliced: Protecting Grasslands with Climate Finance

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Our work with a longtime client deeply involved in the restoration of global grasslands has given us a front-row seat to both the incredible value and the urgent vulnerability of these ecosystems. This relationship inspired me to take a closer look at grasslands, not only through an environmental lens but also as an opportunity for scalable, finance-driven climate solutions. Grasslands may be underappreciated in mainstream conservation conversations, but their importance to planetary health, food systems, and local communities is difficult to overstate.

Grasslands, spanning an estimated 52.5 million square kilometers, over 40% of the Earth’s terrestrial surface excluding Antarctica and Greenland, are among the planet’s most extensive yet underappreciated ecosystems. Found across continents such as prairies, savannas, shrublands, and tundra, they are ecological powerhouses and cultural keystones that support life, livelihoods, and landscapes. Despite their size and significance, they face growing threats from industrial agriculture, land conversion, and climate change. The solution to their survival may lie in climate finance.

Ecologically, grasslands perform critical functions that stabilize Earth’s systems. They hold more than 30% of the world’s terrestrial carbon stocks, making them essential for mitigating climate change. They are home to a wide range of flora and fauna, some highly endangered, such as the Plains-wanderer in Australia and African savannah elephants. Their dense root systems filter water, retain soil, and recharge aquifers, providing essential ecosystem services that extend far beyond their boundaries.

Beyond ecology, grasslands are deeply interwoven with human societies. Over 1 billion people depend on them for food security, livestock grazing, and traditional livelihoods. Indigenous and rural communities around the world maintain cultural, spiritual, and historical connections to grassland environments. Economically, grasslands support around 80% of agriculturally productive land and contribute to global markets through cereals, livestock, wool, and ecotourism.

However, these ecosystems are vanishing at alarming rates. Nearly half of the world’s grasslands have already been degraded, primarily due to agricultural expansion, urban sprawl, overgrazing, and climate-induced stressors like drought and invasive species. In North America alone, 1.9 million acres of grasslands are lost annually. Fire suppression and herbicide overuse further degrade habitat quality.

A standout leader in reversing this trend is the Savory Institute, whose work has shaped the global movement toward regenerative grassland management. Their Ecological Outcome Verification (EOV) model sets a benchmark for how outcomes, not just practices, should be measured and rewarded. EOV uses a science-based, field-tested framework to track indicators like soil health, water retention, biodiversity, and ecosystem function, making it one of the most credible and transparent tools in land restoration. Importantly, the model connects land managers and investors by validating real ecological improvements, which enables carbon markets, brands, and funders to align capital with measurable impact. With decades of leadership in holistic land management, Savory has not only influenced theory but helped regenerate millions of acres across five continents.

More broadly, climate finance offers promising mechanisms to protect and restore grasslands. In Brazil’s Cerrado biome, a $69 million fund has protected 43,000 hectares, avoiding emissions of roughly 18 million tonnes of CO2. Additional methods, such as Verra’s VM0032 Methodology for the Adoption of Sustainable Grasslands through Adjustment of Fire and Grazing, v1.0, focus on improved grazing to boost carbon sequestration over decades.

Impact and catalytic investing also play critical roles. Transition finance models, such as Mad Agriculture’s Perennial Fund, support farmers in adopting regenerative practices through blended capital, grants, and low-interest loans. France’s national grassland conservation program, despite a modest 7% carbon-offset return on investment, offers up to 44% value through broader ecological co-benefits like biodiversity and soil health.

Grassland restoration efforts must also center communities. Initiatives such as The Climate Trust’s support for small U.S. ranchers demonstrate that local leadership and technical support are key to durable conservation. By lowering access barriers to carbon markets and aligning traditional stewardship with financial incentives, these programs turn marginalized actors into central stakeholders.

In conclusion, grasslands are foundational to ecological balance, food systems, and community resilience, yet they remain under threat. The good news is that diverse forms of climate finance – carbon markets, catalytic capital, blended funds, and community-based grants – offer practical tools for conservation and regeneration. Success will depend on scaling proven models, integrating the knowledge of Indigenous Peoples and Local Communities, and building equitable financial systems that reward stewardship.

Protecting the world’s grasslands is more than an environmental goal, it is a vital strategy for climate stability, biodiversity, and human equity in the 21st century.

Interested in connecting with us on climate finance, impact investment, climate solutions strategy, or carbon credit development and commercialization? Book a 30-minute conversation with Gordian Knot Strategies here to discuss how we can support your goals.

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