Finance Mechanisms for a Low-Carbon Development in Peru
Past experience in many developing countries has shown that although ambitious mitigation objectives and activities have been defined on a planning level, there are frequently challenges in moving these actions towards implementation. A major barrier in this context is generally the lacking existence of and commitment to sound approaches on the financing of mitigation actions. Whilst international climate finance can play an important role in implementation, in most cases, mitigation actions will only be sustainable if they are also aligned with national public finance allocations and if private sector investments can be mobilised.
The “Finance Mechanisms for a Low-Carbon Development” project (FinanCC) aims at strengthening the capacities of prioritised institutions in integrating climate change mitigation aspects into public and private financial instruments and in their proper application.
In this context, the project will support the following activities:
- Development of guidelines for the inclusion of mitigation aspects into the planning and evaluation of public investment projects.
- Development of a methodology for translating NAMAs (related to sustainable transport and construction) into results-based public budget programmes, in order to ensure their financial sustainability and foster their implementation.
- Assistance with the implementation of a “green bonus” housing programme for eco-efficient buildings.
- Introduction of low-carbon development and sustainable land use considerations into the portfolio of credit lines of the agricultural bank Agrobanco.
The project is part of the global CF Ready (Climate Finance Readiness) Programme of the German Federal Ministry for Economic Cooperation and Development (BMZ) and receives funding from USAID.
GIZ, in cooperation with several Peruvian institutions: Ministry of Economy and Finance, Ministry of Environment, Ministry of Housing, Construction and Sanitation, Ministry of Transport and Communications, Housing Fund MiVivienda, Agriculture Bank Agrobanco.
General, LEDS, Other
Deutsche Gesellschaft für Internationale Zusammenarbeit (Germany - GIZ)
1 million USD
August 2015 - July 2017
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- Global Good Practice Summary Report (GPA2.0)