Accelerating biodiversity conservation in the peruvian Amazon: innovative and inclusive financial mechanisms
Location
Period
Mar 2025 - Mar 2027
Funding (USD)
1,405,883
Project Code
PE48
Theme
Climate Finance
Green Growth
Status
Active
Project Summary
This project aims to strengthen the financial and institutional foundations for biodiversity conservation in Peru by promoting innovative mechanisms such as biodiversity bonds, habitat banks, and payments for ecosystem services.
Through a government-led approach, it seeks to create enabling conditions to mobilize greater financial resources toward conservation, integrating biodiversity into the national financial policies and decision-making processes.
It also promotes the inclusion of women, indigenous communities, and rural populations as key actors in ecosystem protection, ensuring they are fairly compensated for their contributions.
Project goal and objectives
The project seeks to accelerate biodiversity conservation and sustainable ecosystem management as key drivers of resilience, inclusive development, and sustained economic prosperity for Peru, the Amazon, and its communities.
Key objectives include:
– Strenghtening the institutional and regulatory framework to support the effective and sustainable implementation of Peru’s National Strategy for Biological Diversity.
– Enhancing the equitable distribution of financial, economic, and social benefits derived from biodiversity conservation and sustainable natural ecosystems management.
-Incresing financial flows directed toward biodiversity conservation and sustainable ecosystem management.
Context and Background
Despite Peru’s rich biodiversity, sustainable management efforts are constrained by fragmented planning, lack of standardized metrics, and limited coordination among institutions. Existing financial mechanisms are insufficient to support large-scale conservation, and biodiversity projects often lack viable revenue models, which discourages private investment.
Vulnerable groups, including Indigenous peoples, rural communities, women, and youth, are disproportionately impacted by biodiversity loss, which threatens their livelihoods, food security, and cultural heritage. Existing financial tools and planning frameworks often fail to address their needs or include them in decision-making.
Additionally, nature-related risks are not yet integrated into financial and policy frameworks in Perú, increasing the country’s exposure to greater economic vulnerability. Unlike neighboring countries such as Colombia and Brazil, Peru has not adopted the recommendations of the Taskforce on Nature-related Financial Disclosures (TNFD).
Unlocking scalable, bankable, and private-sector-led conservation models is essential to close the biodiversity finance gap and ensure long-term impact.