NATIONAL FOREST AND CLIMATE
CHANGE STRATEGY
PROMOTING PRIVATE INVESTMENT FOR
GREEN GROWTH IN PERU
Víctor Galarreta
SALIENT FEATURES OF THE
PERUVIAN AGRICULTURAL SECTOR
Climate Change and Agriculture
Micro Deforestation: coffee and
livestock
Peruvian agriculture is a plotter economy ,
where 85% of farmers have plots less...
Megadiverse Peru = Risky
Mega Diversity: High
Risk (Adverse
Selection). High
interest rates
Smallholders: High
transaction costs
Incomplete or
none...
Promote the development of climate-
smart territories
How can we make this happen ?
GREEN DEVELOPMENT OF RURAL
TERRITORIES
Green Growth of
Agriculture:
Inclusive,
Sustainable and
Competitive
“Boutique”
Prod...
Peru maintains an
Investment Grade, stable
macroeconomic basis
and liquid institutional
investors
Green financial
ecosyste...
Challenges and Opportunities
Many small players
involved in green
projects: Farmers,
Service users,
Communities
High risk ...
The Challenge
Innovate and
reduce distance
between
entrepreneurs and
investors
Incubate and
accelerate the
portfolio of gr...
Promoting Startups towards the capital
market
Gestation Birth Development Expansion Maturity
Financing
Business support
Po...
A TEST OF GREEN PORTFOLIO: OUR "GREEN
CHIPS"
COASTAL EXPORT
AGRICULTURE
•Greening agricultural exports as ABC, exploring c...
Promoting Private Investment for Green Growth in Peru- Víctor Galarreta
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Promoting Private Investment for Green Growth in Peru- Víctor Galarreta

This presentation by Víctor Galarreta was given at a session titled "Promoting Private Investment for Green Growth in Peru" at the Global Landscapes Forum: The Investment Case on June 10, 2015. For more, please visit http://www.landscapes.org/london/
Published on: Mar 3, 2016
Published in: Environment      
Source: www.slideshare.net


Transcripts - Promoting Private Investment for Green Growth in Peru- Víctor Galarreta

  • 1. NATIONAL FOREST AND CLIMATE CHANGE STRATEGY PROMOTING PRIVATE INVESTMENT FOR GREEN GROWTH IN PERU Víctor Galarreta
  • 2. SALIENT FEATURES OF THE PERUVIAN AGRICULTURAL SECTOR
  • 3. Climate Change and Agriculture
  • 4. Micro Deforestation: coffee and livestock Peruvian agriculture is a plotter economy , where 85% of farmers have plots less than 10 hectares , predominantly productive units, with an area between 3 and 10 hectares (33%)
  • 5. Megadiverse Peru = Risky
  • 6. Mega Diversity: High Risk (Adverse Selection). High interest rates Smallholders: High transaction costs Incomplete or nonexistent markets Only 10% of agricultural units requested a credit (CENAGRO 2012) and only 9% had access. FINANCIAL MARKET FAILURES: DEFORESTATION DRIVER?
  • 7. Promote the development of climate- smart territories How can we make this happen ?
  • 8. GREEN DEVELOPMENT OF RURAL TERRITORIES Green Growth of Agriculture: Inclusive, Sustainable and Competitive “Boutique” Productos, not Commodities Low Carbon Coastal Agriculture , competitive and complementary to the Amazon. Financial and Business Models Innovations y Paisajes Designation of Origin. Associated with diversity, ABC and Landscapes
  • 9. Peru maintains an Investment Grade, stable macroeconomic basis and liquid institutional investors Green financial ecosystem has much room to grow in the country: Green Infrastructure; Low Carbon Agriculture; Energy efficiency; Bio- business. The pipeline of initiatives presents a gap in its early stages. Lack of Green Startups: Incubation and Acceleration Available International financing offer from credit lines to Green Bonds and hedging instruments. The available capital is growing. The Business Climate
  • 10. Challenges and Opportunities Many small players involved in green projects: Farmers, Service users, Communities High risk perception of potential projects for the portfolio: Track Record, volatility, social risk Innovate business models that bring these medium and long term enterprises closer to the capital market
  • 11. The Challenge Innovate and reduce distance between entrepreneurs and investors Incubate and accelerate the portfolio of green projects Build a Risk Capital Fund, which invests in the development of Green Startups and “adjusts“ them in the capital market
  • 12. Promoting Startups towards the capital market Gestation Birth Development Expansion Maturity Financing Business support Policies development Green business incubators Business ‘accelerators’ Seed capital (FFF*) Green angel investors (networks) time Green Bonds Funds for green innovation Green loans IPOsVenture Capital Private Equity i Self-regulatory and regulatory mechanisms in the sectors (green banks, etc.) Green Bonds Carbon trading system Public risk management instruments for green projects (DCA, MIGA, PPPs, etc.)
  • 13. A TEST OF GREEN PORTFOLIO: OUR "GREEN CHIPS" COASTAL EXPORT AGRICULTURE •Greening agricultural exports as ABC, exploring carbon neutrality. •Complement investments on the coast with reforestation in the Amazon. Green Infrastructure •Investment in Major Basins: Rimac, Jequetepeque Santa. •Link basins with Landscapes (territories). •Promoting collective systems for modern irrigation. Silvicultural Sector •Promote Reforestation, using existing plantations as collateral. •Develop proposal of Green Corridor parallel to Trans-Oceanic Railway Project. •Promote Prime forest cluster with designation of origin . Biodiversity Portfolio •Enhance the sale of biodiversity products on the basis of Gastronomy, Eco Tourism, Cosmetology, “shamanería”.

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