BIODIVERSITY FINANCE
Peru drives US$ 8 million investment in biodiversity conservation through two innovative financial mechanisms
Peru is one of the most biodiverse countries in the world. To preserve its natural heritage, which spans from the…










Peru is one of the world's most biodiverse countries, with ecosystems ranging from the Pacific coast and Andes to the Amazon rainforest. Its natural capital supports agriculture, fisheries, forestry, tourism, water security and the livelihoods of millions of people, while the Peruvian Amazon forms part of one of the planet's most important biodiversity and carbon reservoirs.
Despite this extraordinary natural wealth, biodiversity faces growing pressures from land-use change, ecosystem degradation, climate change and unsustainable production. Protecting and restoring nature requires not only stronger policies, but also sufficient and well-targeted finance. Mobilizing new resources, improving the effectiveness of public expenditure and increasing private investment are therefore essential to achieving Peru's national biodiversity goals.
UNDP BIOFIN has worked in Peru since 2013, in close collaboration with the Ministry of Environment and other national partners, to strengthen the country's biodiversity finance framework. The programme supports biodiversity expenditure analysis, financial needs assessments, the development of the Biodiversity Finance Plan and the design of finance solutions that can mobilize public, private and international resources for nature. This work is helping Peru align biodiversity finance with its updated National Biodiversity Strategy and Action Plan and the Kunming–Montreal Global Biodiversity Framework.
Based on initial results of the Biodiversity Finance Plan, the following are the finance solutions planned for BIOFIN Phase II in Peru:
Finance Solution 1: Increasing Public Investment for Biodiversity; to strengthen the public entities’ prioritization of public investment projects in biodiversity and ecosystem services, based on guidelines of the National System of Multiannual Programming and Investment Management (Invierte.pe), Investments to Offset to Tax liabilities (Work for Taxes) and the Mechanisms for Compensation for Ecosystem Services (MERESE).
Finance Solution 2: Financing funds and green credits to leverage funding for biodiversity; which seeks to develop studies of public financing funds and promote green portfolios in financial institutions to diversify and enhance investment towards the financing of biodiversity with the participation of the Ministries of Finance, Environment and Agriculture, the Financial Banking Association, the Banking, Insurance and Pension Fund Regulator and the Peruvian Federation of Municipal Savings and Credit Banks, among other.
Finance Solution 3: Sustainable bonds for biodiversity to support economic recovery, which has the objective of conducting a viability study that enables a General Corporate Framework for the issuance of sustainable bonds in the microfinance sector to seek positive impacts on the conservation and sustainable use of biodiversity.
Mobilizing Public Investment for Biodiversity
UNDP BIOFIN is helping Peru integrate biodiversity into public investment and develop investment-ready projects for nature. The programme has supported a potential portfolio of more than 600 feasible public investment projects focused on biodiversity conservation and natural infrastructure.
Unlocking US$8 Million for Biodiversity Projects
Through public investment mechanisms including Invierte.pe and Works for Taxes, UNDP BIOFIN has helped advance around US$8 million in investment commitments for four projects focused on ecosystem recovery and conservation in Piura and Junín. More than 500 public investment project formulators have also been trained in natural infrastructure project development.
Building a US$24 Million Nature Investment Pipeline
UNDP BIOFIN is supporting the development of approximately 20 water harvesting and ecosystem projects in the Andean region, representing around US$24 million in potential investment. The portfolio demonstrates how existing public finance mechanisms can be used to scale investment in ecosystems and biodiversity.
Scaling Biodiversity-Friendly Microfinance
UNDP BIOFIN supported the integration of biodiversity considerations into the environmental credit policy of Peru's municipal savings and credit banks and the development of BioCredito, which finances sustainable production practices and biodiversity-friendly businesses. More than 600 credit analysts have been trained in sustainable finance, strengthening the capacity of Peru's microfinance sector to direct finance toward nature-positive activities.
Developing Sustainable Bonds for Biodiversity
UNDP BIOFIN developed a General Framework for Sustainable Bonds, aligned with International Capital Market Association standards, to help Peru's microfinance sector diversify its sources of capital and support future labelled bond issuances that can finance biodiversity-positive activities.