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.

Project data

Countries
Peru
IKI funding
6,000,000.00 €
Duration
04/2020 till 03/2025
Status
open
Implementing organisation
Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH
Political Partner
  • Ministry of Environment (MINAM) - Peru
  • Ministry of Foreign Relations - Peru
Implementing Partner
  • Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH

State of implementation/results

    Public sector:
    • The Ministry of the Environment (MINAM), in collaboration with the Ministry of Agricultural Development and Irrigation (MIDAGRI), has updated the law creating the Competitiveness Compensation Program (Agroideas). In the first phase of the support program for the introduction of new technologies, 45 business plans were selected in April 2024. These plans were evaluated according to the new guidelines, which BioInvest helped to develop. A budget has yet to be approved by the Board of Directors. The most important products in the value chains include guinea pigs, honey and avocados (link).
    • The Internationalization Promotion Program (Programa de Apoyo a la Internacionalización, PAI), which also takes biodiversity conservation criteria into account, co-finances 33 projects in eight regions, mainly in the agricultural, textile and processing industries. The Ministry of Foreign Trade and Tourism (MINCETUR) has published a list of beneficiary exporting SMEs that will receive a total of EUR 17,000 in non-repayable funds and EUR 22,000 in co-financing (link).
    Private sector:
    • MINAM has selected 85 small and medium-sized enterprises (SMEs) from 19 regions of the country to participate in a program to prepare for impact investment in 2024. The investments vary between 90,000 and 900,000 euros. As part of the program, the SMEs will receive three months of training and technical support with the aim of improving the social and environmental impact of their investments. (link).
    • MINAM has partnered with the savings banks of Ica (link) and Cusco (link) to promote green loans for biogas plants in the livestock sector. This initiative supports over 33,000 livestock farmers with an investment of around 99 million euros. Biogas plants produce biogas and organic fertilizer from livestock waste, which reduces greenhouse gas emissions by 300 kg of CO2 per cubic metre of waste. This measure promotes the circular economy and ecological sustainability in the regions of Arequipa, Ayacucho, Apurímac, Cusco and Ica.
    • In cooperation with MINAM and with technical support from the project, Sparkasse Caja Cusco has introduced the innovative Agroprotector financial product. This product is designed to promote sustainable agricultural practices and forest protection in the cultivation of flagship products such as coffee and cocoa (link). So far, four financial products have been placed in Quillabamba, Cusco, with a total amount of EUR 8,000.

Latest Update:
02/2025

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