Early Warning System

Countries

Peru

Geographic location where the impacts of the investment may be experienced.

Specific Location

Amazonas, San Martín, Cusco, Puno, Loreto and Madre de Dios

Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.

Financial Institutions

Green Climate Fund (GCF)

International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.

Project Status

Proposed

Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.

Bank Risk Rating

Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."

Voting Date

Oct 17, 2022

Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.

Borrower

Peruvian Trust Fund for National Parks and Protected Areas (PROFONANPE)

A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.

Sectors

Agriculture and Forestry
Climate and Environment

The service or industry focus of the investment. A project can have several sectors.

Investment Type(s)

Grant

The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.

Investment Amount (USD)

$ 10.00 million

Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.

Loan Amount (USD)

$ 8.90 million

Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.

Grant Amount (USD)

$ 8.90 million

Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.

Project Cost (USD)

$ 10.00 million

Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.

Bank Documents

Primary Source

Original disclosure @ GCF website

Updated in EWS Oct 5, 2022

Disclosed by Bank Sep 26, 2022

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Project Description

If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

The purpose of the EBBF project is to achieve effective mitigation results by investing in eco bio businesses that support the sustainable management and conservation of Peruvian forests. EBBF aims to contribute directly to the implementation of national policies to carry out REDD+ actions and eco bio businesses in the Peruvian Amazon region.

The EBBF will provide technical and financial support to eco bio businesses to promote change towards sustainable practices, which will contribute to increasing the value of standing forests, making them financially viable.

The categories of activities that can benefit from the initiative include: Agroforestry, forest use for timber purposes, non-timber forest use, ecotourism and wildlife management.

The EBBF will be established as an open fund and will be capitalized with resources from the GCF and PROFONANPE, while its long-term sustainability will be ensured through repayments of eco bio business grants (EBBs) and possibly payments based on in assigned REDD+ results (RBP), in case Peru qualifies for results-based payments in the future.

The EBBF will also provide specialized technical assistance to strengthen technical and institutional capacities, which will facilitate the implementation, monitoring and reporting of eco bio businesses (EBBs), in line with Peru's national REDD+ framework.

Program Components:

Component 1: Strengthening of REDD+ governance, institutional and regulatory systems. This includes the strengthening and implementation of 3 pillars of REDD+: (i) the Forest Cover Monitoring Module, (ii) Reference Levels for Forest Emissions, and (iii) safeguard mechanisms.

Component 2: Establishes the Financial Facility for Eco Bio Businesses in the Amazon (EBBF) and reimbursable grants.

The EBBs will receive technical and financial support (reimbursable grants) for the expansion/adoption of sustainable agricultural and forestry practices.

EBBF grant funding will benefit a minimum of 55 EBBs during the first ten years of operation with an average volume of USD 90,000.

The funds received from the reimbursement of the grants to the EBBF will be reused following the same procedures as for the award of the initial grants.

Investment Description

Here you can find a list of individual development financial institutions that finance the project.

Green Climate Fund (GCF)

Contact Information

This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.