Following a call for proposals that received 40 applications, the Climate Finance Accelerator (CFA) Peru has announced six innovative low-carbon projects that will support access to finance from investors. The CFA is part of the UK Government’s effort to help Peru tackle climate change through UK International Climate Finance.
Projects are in the fields of energy, forestry, ecotourism and waste management and include activities to increase reforestation areas in Peru, develop innovative ecotourism experiences and improve production systems using solar energy.
To ensure that the selected projects are in the best position to attract investment from Peruvian and international donors, projects will receive capacity building support in areas such as blending funding from public and private sources, developing financial models and preparing pitches -Material and advice on promoting gender, equality and social inclusion. If they secure funding in the future, in addition to their climate change mitigation results, the projects will benefit communities across Peru through pollution reduction, job opportunities, increased energy efficiency, improved public transportation, and by supporting gender equality and social inclusion benefit.
By bringing together stakeholders who can develop and fund large-scale climate projects, the CFA will support Peru’s efforts to fulfill its commitment under the Glasgow Pact, agreed at COP26 in November 2021, to help improve the global limit warming to 1.5 °C.
British Charge d’Affaires for Peru, Peter Clements, said:
“The UK is proud to support Peru’s efforts to tackle climate change and the Climate Finance Accelerator is a great opportunity to do so. At COP26, we could see Peru’s appetite to tackle climate change through increased NDC targets and joining alliances to protect forests. This cohort of projects will drive innovation in key sectors such as energy, ecotourism and waste management. We can’t wait to see the results.”
Libelula CFA Project Manager Peru, Katherine Bocanegra said:
“We are pleased to be working with these six projects to strengthen their capacity and increase their chances of an investment. CFA support will bring projects and funders together, bringing benefits not only to individual projects, but over the longer term to the Peruvian economy as it builds a low-carbon future.”
CFA Program Peru Technical Director Florian Eickhold of SouthSouthNorth said:
“Time counts! The CFA program aims to accelerate the final phase of financial closure for advanced low-carbon projects across a wide range of sectors. This “last mile facilitation” accelerates the implementation of NDCs and helps lay the groundwork for more ambition. I hope that financial institutions and project developers will be inspired by the CFA process to replicate workable solutions at scale. All efforts are required to quickly close the emissions gap towards the global target of 1.5 degrees.”
Projects will begin receiving tailored support ahead of a multi-day event that will take place in May 2022. The support the projects have received so far has included individual needs assessments, as well as financial and technical analyses. The event will allow project advocates to further refine their financial structuring through discussions with interested financial institutions. The event will also provide an opportunity for all attendees to network, and for policymakers and other climate finance initiatives to learn from the landscape mapping findings and recommendations. CFA projects include:
Carbon Turnaround: An innovative organic waste treatment project using Black Soldier Fly technology. Organic waste is recovered and converted into insect protein and an organic fertilizer with high nutritional value. It is based in Lima and managed in partnership with Christof Industries and Grupo GEA.
Grupo Alimenta: Lifesoil™ is our regenerative fertilizer developed to nourish the soil and plants in a balanced way. Replacing mineral fertilizer with Lifesoil™ does not incur any additional costs and allows the soil to bind 30 tons of CO2/ha. Our goal is to set up a network of plants and bind three million tons of CO2.
Marinasol: Installation of floating solar panels in the tailings ponds of a shrimp farm, generating renewable energy and helping to reduce greenhouse gases.
Novum Solar: The project aims to develop, build and operate multiple hybrid power generation systems (solar, battery and backup diesel) to provide electricity to remote communities in the Peruvian Amazon. Currently powered by diesel, the communities are reliably supplied with energy around the clock and 530,000 tons of CO2 are saved.
Rainforest Expeditions and ACCA: This ecotourism project protects primary forest and reduces carbon emissions. It will raise awareness among local people and 35,000-40,000 visitors per year of the need to protect the environment and the reality of climate change by providing jobs and education.
Viridis Terra Perú SA: This project will create a demonstration and training center where up to 1,300 people per year will be taught how to restore degraded land, a biotechnology laboratory with the capacity to produce 1.5 million seedlings per year, a solid forest plantation of 1500 hectares and a nature reserve of about 300 hectares.
For media inquiries please contact:
Carmen Noriega Head of Communications British Embassy Lima [email protected]
Notes for editors:
- UK Department for Business, Energy and Industry Strategy (BEIS): The CFA is funded by International Climate Finance in BEIS. BEIS is the UK government agency responsible for business, industrial strategy, science, research and innovation, energy, clean growth and climate change.
- UK International Climate Finance is the UK Government’s commitment to helping developing countries respond to climate change. The UK has committed to spend at least £11.6 billion on international climate finance between 2021 and 2025. This is the UK’s contribution to the developed world’s target of mobilizing $100 billion per year in climate finance by 2020, which underpins the Paris Agreement.
- The local delivery partners for CFA Peru are Libélula and SouthSouthNorth.
- Libélula is a consulting firm founded in Peru in 2007 specializing in climate change management and communication. Libélula works closely with a wide range of public and private stakeholders at the local, regional and international levels to identify risks and opportunities in the face of climate change in order to inspire and provide solutions at all levels for a low-carbon, resource-efficient and sustainable economy and a climate-resilient future.
- SouthSouthNorth supports national and regional responses to climate change through policy and knowledge interventions, partnerships and intensive collaboration, connecting people and information, enhancing capacities and mobilizing resources to respond in innovative ways to the challenges and opportunities of climate change.
- The global CFA program is managed by PwC UK in partnership with Ricardo Energy & Environment.