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Forest Investment Projects in Peru
To contribute to national targets of reduction of greenhouse gas emissions that result from deforestation in the Peruvian Amazon.

Project Detail

Country

Peru

Project Number

PE-G1003

Approval Date

September 19, 2018

Project Status

Implementation

Project Type

Investment Grants

Sector

ENVIRONMENT AND NATURAL DISASTERS

Subsector

FOREST RESOURCES MANAGEMENT

Lending Instrument

-

Lending Instrument Code

-

Modality

-

Facility Type

-

Environmental Classification

Likely to cause significant negative impacts, or have profound implications affecting natural resources

Total Cost

USD 19,500,000.00

Country Counterpart Financing

USD 0.00

Original Amount Approved

USD 19,500,000.00

Financial Information
Operation Number Lending Type Reporting Currency Reporting Date Signed Date Fund Financial Instrument
GRT/SX-16930-PE Sovereign Guaranteed USD - United States Dollar Strategic Climate Fund Grant
Operation Number GRT/SX-16930-PE
  • Lending Type: Sovereign Guaranteed
  • Reporting Currency: USD - United States Dollar
  • Reporting Date:
  • Signed Date:
  • Fund: Strategic Climate Fund
  • Financial Instrument: Grant

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Implementation Phase
https://www.iadb.org/document.cfm?id=EZIDB0000578-522669563-44369
PE-G1003 First period Jan-Jun 2023 - Public Report.PDF
Published Jan. 29, 2024
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https://www.iadb.org/document.cfm?id=EZIDB0000578-522669563-43738
PE-G1003 Second period Jan-Dec 2022 - Public Report.PDF
Published Jul. 20, 2023
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https://www.iadb.org/document.cfm?id=EZSHARE-522669563-42429
PE-G1003 First period Jan-Jun 2022 - Public Report.PDF
Published Feb. 06, 2023
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https://www.iadb.org/document.cfm?id=EZSHARE-522669563-41423
PE-G1003 Second period Jan-Dec 2021 - Public Report.PDF
Published Aug. 15, 2022
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https://www.iadb.org/document.cfm?id=EZSHARE-522669563-35666
PE-G1003 First period Jan-Jun 2021 - Public Report.pdf
Published Feb. 22, 2022
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https://www.iadb.org/document.cfm?id=EZSHARE-522669563-35209
PE-G1003 Second period Jan-Dec 2020 - Public Report.pdf
Published Jul. 23, 2021
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https://www.iadb.org/document.cfm?id=EZSHARE-522669563-34331
PE-G1003 First period Jan-Jun 2020 - Public Report.pdf
Published Mar. 09, 2021
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https://www.iadb.org/document.cfm?id=EZSHARE-522669563-33713
PE-G1003 Second period Jan-Dec 2019-Public Report.pdf
Published Aug. 25, 2020
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https://www.iadb.org/document.cfm?id=EZSHARE-1470197173-48123
Proyectos de Inversión Forestal Perú - Financiamiento No Reembolsable.pdf
Published Sep. 26, 2018
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https://www.iadb.org/document.cfm?id=EZSHARE-1470197173-48124
Forest Investment Projects in Peru - Non Reimbursable Financing.pdf
Published Sep. 26, 2018
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https://www.iadb.org/document.cfm?id=EZSHARE-2056220512-6142
Convenio de Financiamiento No Reembolsable - Proyectos de Inversión Forestal Perú.pdf
Published Feb. 19, 2019
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https://www.iadb.org/document.cfm?id=EZSHARE-522669563-32450
PE-G1003 Second period Jan-Dec 2018-Public Report.pdf
Published Oct. 16, 2019
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https://www.iadb.org/document.cfm?id=EZSHARE-522669563-33072
PE-G1003 First period Jan-Jun 2019-Public Report.pdf
Published Feb. 12, 2020
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Preparation Phase
https://www.iadb.org/document.cfm?id=EZSHARE-1078895510-6
Marco de Gobernanza EASE-final.pdf
Published Mar. 07, 2018
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https://www.iadb.org/document.cfm?id=EZSHARE-1078895510-7
actas consultas_consolidado.pdf
Published Mar. 07, 2018
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https://www.iadb.org/document.cfm?id=EZSHARE-1078895510-8
PE-L1232-EASE_PGAS marzo 2018-final.pdf
Published Mar. 12, 2018
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Publications
Published 2022
Payment for Ecosystem Services in Costa Rica: Evaluation of a Country-wide Program
Several countries have implemented payment-for-ecosystem-services (PES) programs, buoyed by the promise of these programs as a win-win strategy that would allow both the conservation of natural resources, and the reduction of poverty for rural households and communities. Our study evaluates the effect on deforestation of Costa Rica's PES program, one of the oldest country-wide programs in the world. Costa Rica approved the 1996 Forest Law (Law No. 7575), creating a PES program that compensates landowners for forest conservation. We estimate these effects using an event study design with staggered entry into treatment. Our results show a statistically significant effect for the first year with a decrease in deforestation of 0.21 ha, but not for the following years. Given that the baseline level of deforestation in our sample is low, the magnitude of the effect is large. When compared to the pre-2016 average level of within farm deforestation, our estimated effect would imply a 100% reduction in deforestation for the first year after enrollment. Given the program pays the participants for a 5-year period, and that the effect is significant only during the first year, it may be beneficial for the program to reduce its length and implement required simplified annual contract renewals or other behavioral interventions to reduce noncompliance in subsequent years.
Blogs
Published 2023
Training Guardians of Suriname’s Mangrove Forests
Suriname, the world’s most forested nation, boasts a diverse and rich ecosystem that includes vital mangrove forests along its coastline. Like a hidden magical realm, the magnificent mangrove ecosystems hold the secrets to a thriving world beneath the waves. These mangrove ecosystems play a crucial role in supporting biodiversity, mitigating climate change, and providing sustainable
Publications
Published 2021
Options to Achieve Carbon Neutrality in Chile: An Assessment Under Uncertainty
Chile aims to reach carbon neutrality. Its Nationally Determined Contribution (NDC) commits the country to reach net-zero emissions of greenhouse gases by 2050 and sets targets for emissions to be reduced progressively over time. To comply with the goals of the NDC, line ministries have considered a set of sectoral transformations, such as closing coal-fired power plants, promoting electric mobility, and increasing forest captures which, taken together, could bring emissions down to zero. This study evaluates how these sectoral transformations would fare under a wide range of economic, environmental, and technological uncertainties. It identifies the vulnerabilities of the strategy, that is, under what conditions sectoral transformations are insufficient to achieve net-zero emissions. It then quantifies options for making sectoral plans to deliver the NDC more robust, that is to reduce the likelihood of not achieving carbon neutrality. Additional measures discussed include speeding up retirement of coal-fired power plants, promotion of telework and non-motorized transport, reduction of beef consumption, expansion of thermal retrofitting of houses, increased afforestation, sustainable forest management, and expansion of protected areas. These measures are based on ideas proposed by sectoral experts during a participatory process. Finally, a macroeconomic evaluation finds that enhancing the set of measures put forward to comply with the NDC would result in a net gain of 0.8% of gross domestic product (GDP) by 2050, on the top of 4.4% GDP gain that the current NDC plans would bring.
Publications
Published 2021
NDC Invest Bulletin: Vol. 4, January 2021
The IDB Group supports the region through nature-based in Central America to address development challenges which are exacerbated by climate change. With a portfolio of about US $ 200 million, the Bank supports the design and implementation of REDD strategies focused on protection and management sustainable forest, value chain support and climate finance resource mobilization. These programs support countries to meet not only commitments under their NDCs, but also with national development priorities.
Blogs
Published 2022
Podemos compartir una comida y preservar la biodiversidad y el clima, si elegimos lo que comemos y cómo lo producimos
Las fiestas nos recuerdan el poder cultural de la comida: nada mejor para unir a familiares y amigos que un plan para compartir una deliciosa comida. Excelente plan, hasta que empieza la discusión alrededor de temas delicados. En estas fechas, latinoamericanos y caribeños se reúnen para celebrar grandes hitos (¡incluido una copa!), justo cuando líderes mundiales anuncian la firma de un marco global para proteger la biodiversidad. En estas cenas navideñas, algunos van a acabar discutiendo con sus cuñados sobre el impacto medioambiental de los alimentos. ¡Ojalá no le pase! Pero por si pasa, dos publicaciones recientes del BID ofrecen datos sobre el impacto de la comida en la deforestación y las emisiones de gases de efecto invernadero, las ventajas de mejorar el sistema alimentario, por qué es difícil hacerlo y cómo pueden los gobiernos actuar al respecto.
Publications
Published 2021
Amazonian Forest: The Products of Agroecological Systems: Considerations about the Natural Forest and Economic Exploitation for its Conservation and How to Develop Sustainable Agroforestry Systems that Induce the Reduction of Deforestation
This study demonstrates that the economic activity of the Amazon's natural forest has great potential yet to be developed when considering Non-Timber Forest Products (NTFPs) and those coming from agro-ecosystems (SAFs). Preliminary financial analyzes, in systems that are still incipient, point to a great potential for profitability of these alternative systems compared to traditional activities such as soybean and livestock farming, with the advantage of being conducted without degradation and deforestation, allowing the continuation with the support of the Amazonian ecological system. More research is needed to scale successful cases and more “dialogue” between the models of modern agriculture and the traditional knowledge to reach an integrated natural forest management system.
Blogs
Published 2021
Run Out of Waste Day in Suriname
With almost 95% of its territory covered by tropical green forest, Suriname is considered as one of the greenest countries in the world. But this title comes with the responsibility to care for the environment. The sustainable management of resources and waste is fundamental to protect and preserve the forests and landscapes of Suriname. However, waste
Publications
Published 2020
The Value of Biodiversity in Economic Decision Making: Applying the IEEM ESM Approach to Conservation Strategies in Colombia
In this paper we evaluate the economic, natural capital and ecosystem services impacts of strategies for conserving Colombias rich natural capital endowment. Specifically, we consider Government program proposals for establishing Payment for Ecosystem Services (PES), implementing more sustainable silvopastoral systems and expanding habitat banking. We develop and apply the Integrated Economic-Environmental Modeling (IEEM) Platform linked with spatial Land Use Land Cover (LULC) and Ecosystem Services Modeling (IEEMESM) to shed light on the multi-dimensional impacts of these programs from the perspective of sustainable economic development and intergenerational wealth. Advancing the state-of-the-art in integrated economic-environmental modeling, our framework for the first time integrates dynamic endogenous feedbacks between natural capital, ecosystem services and the economic system to fully capture how changes in natural capital and ecosystem service flows affect the economy and vice versa. Our approach quantitatively models the economy, natural capital and ecosystem services as one integrated and complex system at a high level of spatial resolution across Colombias 32 Departments. We demonstrate how valuing biodiversity in public policy and investment analysis can make the difference between an investment that is economically viable and one that is not. Without accounting for the value of biodiversity, the proposed PES and habitat banking programs are not economically viable. Including the value of biodiversity, both PES and habitat banking become strong investment propositions with a net present value of US$4.4 billion and US$4.9 billion, respectively. The economic and environmental benefits of enhancing Colombias natural capital base and future ecosystem service supply are demonstrated and regionally differentiated, which provides a strong empirical evidence base to inform the spatial targeting of policies to maximize economic, environmental and social outcomes.
Publications
Published 2021
An Amazon Tipping Point: The Economic and Environmental Fallout
The Amazon biome, despite its resilience, is being pushed by unsustainable economic drivers towards an ecological tipping point where restoration to its previous state may no longer possible. This is the result of self-reinforcing interactions between deforestation, climate change and fire. In this paper, we develop scenarios that represent movement towards an Amazon tipping point and strategies to avert one. We assess the economic, natural capital and ecosystem services impacts of these scenarios using the Integrated Economic-Environmental Modeling (IEEM) Platform linked with high resolution spatial land use land cover change and ecosystem services modeling (IEEMESM). This papers main contributions are developing: (i) a framework for evaluating strategies to avert an Amazon tipping point based on their relative costs, benefits and trade-offs, and; (ii) a first approximation of the economic, natural capital and ecosystem services impacts of movement towards an Amazon tipping point, and evidence to build the economic case for strategies to avert it. We find that a conservative estimate of the cumulative regional cost through 2050 of an Amazon tipping point would be US$256.6 billion in Gross Domestic Product. Policies that would contribute to averting a tipping point, including strongly reducing deforestation, investing in climate-adapted agriculture, and improving fire management, would generate approximately US$339.3 billion in additional wealth. From a public investment perspective, the returns to implementing strategies for averting a tipping point would be US$29.5 billion. Quantifying the costs, benefits and trade-offs of policies to avert a tipping point in a transparent and replicable manner can pave the way for evidence-based approaches to support policy action focusing on the design of regional strategies for the Amazon biome and catalyze global cooperation and financing to enable their implementation.
Publications
Published 2022
Credence Attributes and Opportunities: Yerba Mate in Paraguay
The value of yerba mate (Ilex paraguariensis) exports from Paraguay has recently increased dramatically. Much of this growth is due to positioning of the good within the universe of products where consumption growth is driven by perceptions of sustainable production and health benefits to consumers--that is, credence attributes creating a new dimension of demand. Credence claims for yerba mate's benefits to indigenous producing communities, environmental sustainability under certain production processes, healthful alternatives to energy drinks, are now widely known, but the growth of this awareness came via a new entrepreneurial strategy of a single firm. This case study explores the determinants of growth of credence-based exports of yerba mate from Paraguay, potential for increased growth, and the fragility of the credence-based model.
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