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
Online: https://www.giz.de/en/worldwide/93112.html

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State of implementation/results

The law, which creates a special incentive for biodiversity-friendly business models by adapting the competitiveness compensation program (Agroideas), was published in the official gazette El Peruano (link).
The National Program Agroideas now allows access for a larger group of producers. In addition, the program Committee (Comité del programa) is now able to develop specific incentives for organic companies based on criteria from new global frameworks (e.g. from the EU regulation on deforestation-free supply chains - EUDR).
Access for producers to subsidy-relevant incentive mechanisms for the introduction of biodiversity-friendly technologies is also to be facilitated.
The BioInvest project also supports the Programme for the Promotion of Internationalization (PAI), which was created through cooperation between the Ministry of Environment (MINAM) and the Ministry of Foreign Trade and Tourism (MINCETUR), in the integration of sustainability criteria with a focus on biodiversity. To date, the PAI has supported 14 organic companies in the regions of Cajamarca, Lima, Junín, Amazonas and San Martín and provided a total of 275,000 euros in non-repayable funds.

As a result of the second edition of the matchmaking event, 10 impact investors have identified investment potential in 23 biodiversity-friendly business models. The investors are already in concrete negotiations with 7 of these business models.
Since December, the Municipal Savings Bank of Ica (Caja Municipal) has been offering loans for biodiesel plants, which should be of interest to agricultural producers in the Andahuaylas, Ayacucho and Cusco regions.
In collaboration with two Peruvian universities and the Ministry of the Environment, a course for risk analysts on integrating biodiversity into the world of finance was successfully developed. The focus of this course is on presenting the connection between biodiversity aspects and financial risk analyses, as well as identifying existing potential through the inclusion of biodiversity aspects in risk analyses. 35 participants from the financial sector are already applying the knowledge acquired in this course.

Latest Update:
07/2024