Impact investments for the sustainable use of biodiversity in Peru
With more than 80 percent of the territory covered by forest ecosystems, Peru is considered one of the 17 megadiverse countries in the world. Peru´s current economie is highly dependent on the use of non-renewable natural resources, creating considerable negative impacts on the biological diversity. To counteract this problem, Peru committed itself to foster the sustainable use of its biodiversity, thereby improving its competitiveness. The project increases public and private impact investments in green business models that promote the sustainable use of biodiversity. The measures therefore include the planning/adaptation and implementation of public instruments and mechanisms that promote impact investments in biodiversity, strengthening the enabling conditions for green businesses and the implementation of impact business models. The project contributes to a sustainable economic and social development of the biodiversity-rich Peruvian Amazon region. The project is part of the IKI Corona Response Package.
- IKI funding
- 6,000,000.00 €
- 04/2020 till 03/2025
- Political Partner
- Ministry of Environment (MINAM) - Peru
State of implementation/results
- Public sector
- The Ministry of Environment (MINAM), in collaboration with the Ministry of Economy and Finance (MEF), has published a Roadmap for Green Finance through a Presidential Decree. This instrument establishes lines of action to mobilize the resources of the financial system for green investments. It is the first of its kind in Latin America. Link.
- The Ministry of Environment and the Ministry of Agricultural Development and Irrigation (MIDAGRI) are jointly promoting the adaptation of the law for the establishment of the Competitiveness Compensation Program (Agroideas). The goal is to create a special incentive for biodiversity-friendly business models. The draft law amendment is currently being discussed in the Agrarian Commission of the Peruvian Congress. Link.
- Approximately 8.3 million euro have been catalyzed under the "Promotion Program for Internationalization (PAI)" for companies with biodiversity-friendly business models. This program is the first public funding instrument to integrate biodiversity conservation criteria. This marks a milestone in the cross-sectoral work between the Ministry of Environment and the Ministry of Foreign Trade and Tourism (MINCETUR). Link.
- As a result of the matchmaking event, four of the 32 participating biodiversity-friendly companies received funding totaling 1.2 million euro.
- As part of the second edition of the Investment Readiness program, 39 companies met with 14 impact investors at a 2023 matchmaking event. The companies held bilateral discussions and presented their business models to the investors. Link.
- MINAM is advising two financial institutions in the regions of Ica (link) and Cusco (link) on the development of four dedicated credit lines for biodiesel plants and domestic agricultural products. These financial products will allow the financial institutions to catalyze up to 78 million euro for companies with biodiversity-friendly business models. Another financial institution is close to finalizing a similar agreement.
- Through a successful collaboration between MINAM and two Peruvian universities, more than 40 lecturers participated in a training program on biodiversity finance. The course content was also adapted to the relevance of biodiversity and intact ecosystems for the financial sector. Link
- Report: Baseline biodiversity-friendly companies. (ES)
- Video: Workshop - Task Force on Nature Related Financial Disclosures – TNFD (ES)
- Publication: Supreme decree approving the roadmap for green finance in Peru. (ES)
- Video: Integration and adaptation of financial portfolios to climate and biodiversity risks (ES)
- Video: Green Financing Seminar Module: "Experiences with Advances in Green Financing Instruments, Products, and/or Incentives from IFIs in the Region." (ES)
- Video: Workshop on the importance of green taxonomies (ES)
- Study on institutional and regulatory gaps in the promotion of green financing (ES)
- Video: Green Finance Seminar Module: "Measuring the Impact of Biodiversity Loss on Commercial Bank Portfolios." (ES)
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