The Government of Peru will develop the appropriate capacities, strategic frameworks and a portfolio of projects to accelerate the national and international mobilization of climate finance, while promoting private sector participation and investments in climate change mitigation and adaptation, through the improvement of institutional capacities and the design of sustainable financial plans and instruments.

The Global Green Growth Institute works closely with the government of Peru to support the country in addressing challenges related to climate change and sustainable finance. In this context, the project is being developed with the following objectives:

– Institutional Capacity Building: Delivery of training programs on sustainable finance for the public sector and green banking for the financial institutions.

– Design of Public and Private Financing Instruments: Expansion of green credit lines, development of a Thematic Bond Framework, and implementation and monitoring of the Debt-for-Climate Swap (DFCS).

–Implementation of a System for Monitoring Climate and Gender Financing Flows: Incorporation of the Climate and Gender Budget Tagging System into Peru’s national budget framework.

– Public-private Collaboration Mechanisms: Launch of a flagship project focused on climate-smart public private partnerships.

–Greening of the Financial Market: Integration of ESG (environmental, social and gender) criteria into decision-making processes and banking regulations; implementation of Environmental and Social Management Systems (ESMS); and development of recommendations for banking regulation.

–Acceleration of International Climate Finance: Provision of technical assistence for the development, submission, and review of a concept note submitted to the Green Climate Fund.

GGGI Peru collaborates with multilateral institutions, government agencies, and the private sector to develop a diverse portfolio of programs through an integrated approach to green growth planning and implementation, offering innovative solutions and sharing knowledge.

Outcomes:

-GCF recipient countries have developed or enhanced strategic frameworks to address policy gaps, improve sectoral expertise, and enhance enabling environments for GCF Programming in low emission investment.

-Strategies for transforming and attracting private sector investment for low emissions and resilience have been developed and are being used.

-Increase in the number of quality project concept notes developed and submitted.

Project participants and direct/indirect beneficiaries:

• Ministry of Economy and Finance (MEF)
• Ministry of Environment (Minam)
• Superintendency of Banking, Insurance and PFA (SBS)
• Superintendence of Securities Market (SMV)
• Peruvian financial sector