Combating climate change in agriculture: supporting Agrobanco's strategy for mitigation and adaptation to climate change in the rural areas

This project aimed to support Peru’s main financial instrument for agriculture, Agrobanco, to fulfil its mission of developing the country’s sustainable agriculture.  This project was designed against a backdrop where more than a third of the Peruvian population lives in rural areas and 50% of its revenues come from agriculture, a very vulnerable sector to climate change (drought, flood, Nino and Nina phenomenon, etc.). Agricultural techniques in Peru cause deforestation and considerable degradation. In addition, the use of irrigated water is not effective due to leaks and overwatering and does not thus encourage water savings.

Through LACIF, the EU offered a contribution of 5 325 000 euros to support Agrobanco in mainstreaming climate change mitigation and adaptation in the agricultural sector in Peru.  

The LACIF contribution to this project managed by AFD financed:

I) A Technical Assistance program to increase Agrobanco's green portfolio of projects which reduced greenhouse gas emissions or helped contributing to the adaptation of the Peruvian agriculture to the consequences of climate change. More specifically, the TA looked into Institutional Capacity building, Knowledge transfer, Market studies, marketing and communication and Monitoring, audit and verification.

II) "Green investment grants" for the projects which were most in need of incentives (specifically, in the Andean region for adaptation, in the Selvan area for mitigation and in the "Valle de los rîos Apurîmac, Ene y Mantaro" (VRAEM) area for conversion of coca cultivation to other cultivations, like shaded cocoa or coffee plantations).