Photo: Climate change in Peru
The Inter-American Development Bank (IDB) approved a loan of $25 million to help Peru consolidate its climate change program. The programmatic loan will support policy for the reduction of Greenhouse gas emissions, the reduction of vulnerabilities and adaptation to the effects of climate change.
The program is expected to consolidate the institutional and regulatory framework, to mainstream climate change in development planning and investment, to build capacity in the lead institutions and develop standardized management tools.
An example is Peru’s Risk Management and Climate Change Adaptation Plan in the Agricultural Sector 2012-2021 (PLANGRACC-A), which will channel $704 million for climate research and information, emergency response, risk reduction, planning, and capacity building projects throughout the country.
While Peru contributes minimally to global greenhouse gas emissions, it is among the most vulnerable countries to climate change due to the diversity of its ecosystems and the predominance of climate-sensitive sectors in its economy such as agriculture, energy and fisheries.
About 15 percent of Peru’s GDP and the economic activity of approximately one-third of its population is sensitive to climate change.
Various studies calculate that the impact of climate change to the Peruvian economy could cost 1 percent to 4 percent of GDP by 2030 unless response measures are adopted. On the other hand, an investment of 1 percent of GDP in adaptation measures today has a payback of 5 percent GDP by 2030.