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


Lawrence Szott, Gustavo Suárez de Freitas, Victor Galarreta, Daniel Coronel, Frank Hicks


This document focuses on financial needs to apply the production-protection compact (PPC), which has been proposed as a key element of Peru’s strategy to reduce deforestation. It provides a diagnosis of the current financial needs and opportunities to support the PPC as part of Peru’s broader goals contained in its NDC and National Strategy for Forest Conservation and Climate Change (NSFCC).  More specifically, it examines: a) the scale of finance required to implement the enabling conditions related to land use, smallholder credit, and technical assistance;  b) sources of existing public and private agricultural finance, constraints to their use, and the potential for improving access to finance to support changes in agricultural productivity linked to forest conservation; and c) the potential for accessing additional resources and scaling-up finance to support the PPC in the Peruvian Amazon, notably by accessing international climate finance.