BIOFIN activities in Peru
BIOFIN Peru is undertaking the following activities:
1. Biodiversity Finance Policy and Institutional Review (PIR)
Through this process, the national BIOFIN Team maps the impact of economic sectors on biodiversity, identifies the main financing mechanisms being used and reviews which subsidies have an impact on biodiversity. The PIR also reviews the overall financing architecture for biodiversity in the country and generates specific recommendations for an improved institutional framework.
2. Biodiversity Expenditure Review
Through the Biodiversity Expenditure Review, the national BIOFIN team assesses which expenditures national stakeholders incur towards biodiversity, from both national and international resources, including the public and private sector. This helps the country generate national level expenditure data on biodiversity.
3. Biodiversity Finance Needs Assessment
Detailed calculations will be made to find out how much it would cost to complete all activities and reach all goals of the National Biodiversity Action Plan.
4. Biodiversity Finance Plan
Under this component BIOFIN will develop a strategy to mobilize potential finance actors and finance mechanisms to reach national biodiversity targets.
Status: To start in 2015
5. Implementing the Biodiversity Finance Plan
Status: To start in 2015
Information about the country and partnerships
Peru is a global biodiversity hotspot, being one of the 18 mega diverse countries. It has the highest number of bird species of any country (>1700). The protected area system is more than 100 years old and includes 75 natural protected areas, covering over 15% of all land.
Biodiversity Finance example in Peru: Since 2011 Peru has worked on an ecosystem service valuation for all environmental impact assessments in the country. The purpose is to attribute economic value to environmental services to enhance its benefits and associate the importance of biodiversity conservation with the country’s development. The total value of selected ecosystem services such as energy, water, agriculture, forestry among other services in Peru were estimated at US$15.3 billion in 2009.
To mobilize resources, water fund projects such as Aquafondo were created to finance watershed restoration and other environmental activities. The project has proved a great success and in 2011, seven water funds were operational in the Northern Andes reaching over 11 million people and covering 1.6 million ha of watershed.
The EBA Mountain project in Peru: UNDP and the IUCN have developed the Ecosystem-based Adaptation Program (EBA), a collaborative initiative to implement the Ecosystems Based Adaptation approach in the Peruvian mountains (also Nepal and Uganda). The EbA Mountain project is implemented in the Nor Yauyos Cochas, located in the departments of Lima and Junin. The main objective is to strengthen national capacity to identify and implement measures on Ecosystem-based adaptation, to reduce vulnerability to climate change in local communities in high mountain ecosystems.