GFW Enables Finance for Agroforestry in Peru

Read the original announcement in Spanish from Peru’s Ministry of Environment here, or read an English translation below:

The new “Agroprotector” green credit line has been introduced in Peru through a collaborative effort between the Ministry of the Environment (Minam) and financial institution Caja Cusco. This initiative is part of national efforts to address the impacts of climate change and biodiversity loss.

This innovative financial initiative supports sustainable agricultural practices in agroforestry, particularly in the cultivation of coffee and cocoa. According to Elvis García, Director General of Environmental Economics and Financing in the sector, this new credit offering will support the development of conservation-oriented agroforestry systems in the Amazon. “This significant development is aligned with the Green Finance Roadmap. In this regard, the public-private partnership facilitates the mobilizing of financial resources to value standing forests through the sustainable use of resources,” he said.

Luis Vergara, President of the Sustainability, Inclusion, and Compliance Committee at Caja Cusco, noted that “Agroprotector is an important step toward transforming the economy by redirecting investments and business models towards sustainability.”

In its initial phase, this product is available at agencies located in the La Convención province: Quillabamba, Maracaná, Kiteni, Quebrada, and Machupicchu. Projections indicate that approximately 100 beneficiaries are expected by the end of the year.

Evaluation

In evaluating applications for these credits, the freely accessible Global Forest Watch platform is used to verify, through satellite analysis, any loss of forest cover in the applicants' cultivation plots. This georeferencing tool is essential for the financial institution to assess eligibility for the green credit line.

This initiative is supported by German development agency GIZ with funds from the International Climate Initiative (IKI).