Peru has a forest cover 73.3 million hectares, including part of the Amazon Rainforest, which covers over 60% of the country’s territory. The Peruvian Ministry of Environment (MINAM) estimates the country’s annual deforestation rate at approximately 0.2%, which is relatively low. However, deforestation is considered the primary source of greenhouse gas (GHG) emissions in the country.
Peru submitted its Readiness Preparation Proposal (R-PP) to the Forest Carbon Partnership Facility (FCPF) in March 2011. The R-PP was under review throughout 2013, and the grant agreement is expected to be signed in early 2014. In addition, Peru recently presented the final version of its investment plan under the Forest Investment Program (FIP) and received the first tranche of funding to create a Dedicated Grant Mechanism for Indigenous Peoples and Local Communities. This FIP funding will be reported as part of the 2013 data in late 2014.
Peru’s REDD+ financing landscape is set out below:
Donor Governments agencies account for approximately one-third, or 32% of the total amount of REDD+ funding committed to Peru. A majority (70%) of that funding was allocated to International NGOs/Academic institutions. A portion of these donor governments’ commitments also went to Peruvian NGOs/Academic institutions.
Financial flows from private foundations represent US$7.8 million, or 20% of the total REDD+ finance committed in Peru. The Moore Foundation is responsible for allocating 97% of these funds across a diverse group of recipients, including the Peruvian Ministry of the Environment (MINAM), the Private sector and Peruvian NGOs/Academic institutions.
International NGOs/Academic institutions have committed US$3.9 million to Peruvian government agencies and Peruvian NGOs/academic institutions for the implementation of REDD+ activities in-country, with over US$ 3 million flowing from Columbia University to MINAM. In general, international NGOs/academic institutions tend to be recipients of REDD+ funding rather than donors. However, in some instances, international NGOs and academic institutions mobilize funding through direct public donations which are spent on activities. International NGOs/academic institutions are listed as donors when finance cannot be tracked back to another donor organization.
An overview of the REDD+ financing landscape in Peru shows that donor government agencies are primary contributors, with a vast majority of these funds coming from Finland’s Ministry of Foreign Affairs (FORMIN). FORMIN has committed US$8.6 million, or approximately 22% of the total funding flowing to Peru, which has been entirely allocated to IICA - Peru.
Private foundations, including the Gordon and Betty Moore Foundation and the Charles Mott Foundation are substantial contributors as well, providing approximately 20% of the total funds committed.
Peruvian NGOs and Academia represent large portions of both donors and first tier recipients. These tend to be in-country organizations of large International NGOs including Conservation International (CI), World Wildlife Fund (WWF) and Center for International Forestry Research (CIFOR). Smaller local NGOs are also receiving REDD+ funding. Overall, Peruvian NGOs and Academic institutions are scheduled to receive approximately US$11.1 million, or 29% of the total REDD+ funds fund committed to Peru during the period between 2009 and 2012.
A number of private sector entities are also first tier recipients; however, they are slated to receive only 5% of the total amount committed to Peru.
Peru saw a steady increase of both commitments and disbursements over the four-year period from 2009 to2012, with total cumulative commitments increasing from US $17.1 million in 2009 to US$ 38.9 million in 2012. This is in contrast to other countries in region that tended to receive minimal funding during 2009 and 2010, and then witnessed dramatic increases in both commitments and disbursements towards the end of the Fast Start Period (2011-2012).
The data presented below highlights levels of REDD+ financing committed and disbursed, main donors, recipients and REDD+ activities in the period between 2009 and 2012