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Forests Investments

A Financial Strategy for the Production-Protection Compact in the Peruvian Amazon

By Lawrence Szott, Gustavo Su谩rez de Freitas, Victor Galarreta, Daniel Coronel, Frank Hicks - Contributing Authors: Rupert Edwards, Josh Gregory
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The production-protection compact (PPC), proposed and outlined over the two previous papers in this series, can form a key element of Peru鈥檚 strategy to reduce deforestation, on the basis that environmentally sustainable and economically profitable agricultural production can be combined with increased forest conservation to enable sustainable development that improves livelihoods and environmental protection. A principal challenge of the PPC, however, is how to finance climate-friendly farming practices that improve farm productivity and rural incomes and reduce deforestation. The overall financing requirements are very significant, and as available funding and expertise within the public sector alone are likely to be insufficient to address the scale of the challenge, for the PPC to be successful there is the need to develop public-private partnerships. In this paper, we seek to provide a diagnosis of the current financial needs and opportunities to support the PPC as part of Peru鈥檚 broader goals contained in its NDCs and its National Strategy for Forests and Climate Change (NSFCC).