Lima, April 7, 2021.- The British Embassy in Peru, together with representatives of the public, private and international sectors, presented this Wednesday the three winning projects of the UK PACT (Partnering for Accelerated Climate Transitions), a program that belongs to the International Climate Finance portfolio that provides support towards a sustainable and inclusive economic recovery for governments, businesses and civil society.
Similarly, the Green Recovery Challenge Fund, a program that works with partner countries to improve the capacity and ability of key institutions to reduce emissions and foster inclusive economic growth. The three projects that obtained this funding are:
1.- Peru's government training to support its first sustainable/green sovereign bond issue - The Global Green Growth Institute (GGGI).
The objective is to support the Ministry of Economy and Finance (MEF) and the Ministry of Environment (Minam) to enable the first issuance of sovereign green bonds and was designed in close collaboration with them.
While green bond issuance in the last 10 years grew at an average annual rate of 83% and in 2020 totaled US$ 269.5 billion, there is an increase in the issuance of bonds with social and sustainable labels and bonds aligned with the United Nations Sustainable Development Goals, and it will be a trend to increase their use in the coming years.
2. Capacity building on climate action for investors in the Peruvian financial ecosystem, within the framework of the Green Finance Roadmap - Responsible Investment Certification Program (PIR).
The objective is to sensitize and equip Peru's key financial and public sector stakeholders with tools that will enable them to identify climate-related risks, assess investment opportunities with a low-carbon economy and a climate-resilient approach that will contribute to the achievement of the Nationally Determined Contribution (NDC).
3. Developing and incorporating an NDC capital raising strategy for Peru - GGGI and Vivid Economics
According to the NDC they are at the heart of the Paris Agreement and the achievement of these long-term goals. Thus, this project supports increasing the institutional capacity of national institutions to plan, mobilize and access private capital in support of national climate ambitions through the development of an NDC capital raising strategy.
The British Ambassador to Peru, Kate Harrisson, said that Peru and the United Kingdom are collaborating to accelerate the transition to a low-emission economy.
"One of our priorities in the environmental sector is to promote the raising of capital for sustainable plans and projects in the country. The three projects we have launched today under the UK PACT Green Recovery Challenge Fund amount to approximately US$1.5 million, and aim to integrate the financial and business sector into climate action in close coordination with the Government's goals," he said.
The Lima Stock Exchange (BVL), with the technical support of the British Government, presented the Guidelines on Social and Sustainable Bonds aligned with the Sustainable Development Goals of the United Nations for Peru.
"From the Lima Stock Exchange we are committed to promoting the listing of companies, issues and participants that have sustainable financing and promote a positive impact on the environment. We are grateful for the support of the Embassy of the United Kingdom for its commitment to promote this market. This is an opportunity for business to do good," said Francis Stenning, general manager of the BVL.
Likewise, Miguel Angel Zapatero, deputy general manager of business of the BVL, highlighted that the objective of the Guidelines on social and sustainable bonds aligned with the United Nations Sustainable Development Goals is to provide issuers and investors with the necessary guidelines for the issuance of this type of bonds, raising awareness and promoting a sustainable capital market.
Thus, progress is being made on the overall green finance roadmap, working to reduce greenhouse gas emissions and build resilience to climate change.