Conserving biodiversity in Peru through environmentally friendly investment

Context

Peru is one of the world’s most biodiverse countries. As such, it has huge potential to market biodiversity products and services. Often, however, natural resources are not used in an environmentally friendly way.

Biodiversity-friendly companies earn low profits and have few opportunities to grow their business as the investment options are limited and risky.

At the same time, the traditional capital market does not reward the positive social and environmental impacts of environmentally friendly investment. However, Peru needs to leverage its biodiversity and ecosystem services so that its current economic model can develop into a green economy.

Objective

The Peruvian Government has improved the conditions for sustainable investment, known as impact investment and other forms of sustainable financing in biodiversity-friendly businesses.

Approach

The project supports Peru’s Ministry of Environment (MINAM) in improving the conditions for investments based on the sustainable use of biodiversity. As a result, companies have better access to public and private funding, and can promote the responsible use of natural resources.

The project:

• Identifies biodiversity-friendly companies with scalable business models and trains them until they reach the finance-ready stage,
• Supports matchmaking events to connect these companies with impact investors, and
• Works with public and private stakeholders to develop financing mechanisms to mobilise investment.

In addition, the project is supporting Peru in implementing national strategies that promote green growth, competitiveness and productivity.

The consulting firm ARGE GOPA Worldwide Consultants GmbH supports the project development.

Last update: October 2024