Peru

Peru now has a National Climate Change Strategy to 2050 (ENCC 2050), approved by Supreme Decree in 2024, which includes a net-zero emissions target by 2050 and aims to align sectoral policies with that long-term objective. The ENCC was submitted to the UNFCCC as Peru’s long-term strategy in June 2025. Peru's long-term 'Visión del Perú al 2050' is the country's national strategic development plan, which incorporates climate change and sustainability. The country's Nationally Determined Contribution (NDC) for 2030, updated in 2021, sets ambitious climate goals (30% unconditional, 40% conditional emissions reduction). Additionally, the government created a working group in 2025 to develop a National Energy Plan to 2050. The Ministry of Environment (MINAM) maintains a “Crecimiento Verde” (Green Growth) agenda, with a public page on “economía verde” illustrating that the idea continues to be an organizing principle for environmental-economic integration. The government has launched a Green Finance / Green Bond Roadmap and a Hoja de Ruta de Finanzas Verdes, aiming to mobilize US$5,800 million by 2030 for environmental projects. However, there are policy inconsistencies such as continued investment in fossil fuel expansion and weakening of forestry protection laws, which undermine the overall ambition and coherence of a green transition.

Updated frameworks of voluntary ESG reporting standards. Absence of mandated board-level inclusion requirements. The Superintendency of the Securities Market has approved the Corporate Sustainability Report, a non-mandatory instrument to guide publicly listed companies in disclosing information on environmental policy, social development and stakeholder relations, including labour rights, human rights and energy consumption. This encourages private sector contributions to the SDGs, but it is not mandatory and has no clear incentives. No mandatory standards for either employee representatives on corporate boards or a gender quota for private corporate boards. The country has a Ministry dedicated to inclusion, but focus on gender equality is general. No requirement for employee consultation in high-level decision-making.

Peru has a relatively strong institutional foundation for participatory policymaking: legal rights to citizen participation (Ley 26300), mandatory public consultation in environmental impact assessment (SEIA), and a Law of Prior Consultation for indigenous peoples (Ley 29785). However, these mechanisms are not universal or mandatory across all sectors or for all marginalised groups, and the quality of consultation is often undermined by capacity constraints, power imbalances and weak enforceability. There is no consistent requirement for social or gender impact assessments covering marginalised populations in all proposed legislation.

The IMF’s 2025 technical assistance report notes that Peru’s statistical office publishes statistics and accounts related to environmental issues under the System of Environmental-Economic Accounting, however, improvements are still needed in “timely, coherent statistics to effectively monitor NDCs and guide implementation”. Peru's progress remains focused on the statistical development of natural capital sub-accounts but shows no integration into the national planning cycle.

Major banks are adopting Environmental and Social Risk Management Systems to guide lending practices, using as reference the Green Protocol for the Peruvian Financial System, signed by the Association of Banks of Peru. The National Development Bank (COFIDE) issues green, social and sustainable bonds, with cumulative issuances surpassing USD 2 billion by 2024, supporting renewable energy, sustainable transport and water projects. In 2023, the Ministry of Economy and Finance launched the Sustainable Finance Roadmap 2023–2030, developed with UNDP support, which sets out actions for taxonomy development, ESG disclosure and sustainable investment incentives. The Superintendencia de Banca, Seguros y AFP has introduced climate risk management guidance and begun scenario-based stress testing, but these are voluntary and not regular. Perú is focused on mobilizing capital for climate and biodiversity, like the launch of a project from 2025 aimed at mobilizing USD 500 million by 2027 for biodiversity conservation through innovative financial instruments like thematic bonds, pilot habitat banks and payment for ecosystem services schemes.

"Peru has advanced green finance by issuing sovereign green bonds and implementing the Green Protocol for the financial sector through the Ministry of Economy and the Superintendencia de Banca y Seguros (SBS). Environmental and social risk assessments are allowed on a voluntary basis. The fiscal framework includes these innovations, but there is no institutionalized procedure for integrating environmental sustainability into fiscal or monetary policies, and climate stress testing is not mandatory. The IMF notes macroeconomic stability alongside stalled structural reforms due to political uncertainty.

Peru embeds sustainability to some extent in recent trade instruments. The US-Peru Trade Promotion Agreement contains a binding Environment Chapter and a Forest Annex that is enforceable via trade mechanisms. Peru also participates in TSD processes under the EU/Andean and UK/Andean agreements. On pricing and interoperability, Peru has no explicit economy-wide carbon tax/ETS but is operationalising RENAMI, a national carbon registry. In 2025 the government created a multisector commission to advance a Green Finance Taxonomy, aiming to align domestic classifications with international standards.

There is no national carbon tax or emissions trading scheme currently in place. Current efforts are focused on voluntary carbon markets under Article 6 of the Paris Agreement. According to the update of its nationally determined contribution (NDC 3.0), Peru pledges not to exceed 179 million tonnes of carbon dioxide by 2035. The NDC target is rated as "Insufficient" by independent analysts (Climate Action Tracker) and inconsistent with the Paris Agreement's 1.5°C limit based on Peru's fair share. There is no evidence of a legally-binding carbon budget.

"Peru’s Climate Change Law (2018) established a High-Level Commission and multisectoral working groups to coordinate decarbonization efforts across energy, agriculture, forestry, and transport. The World Bank’s Country Climate and Development Report (CCDR) outlines comprehensive sector strategies. While these institutions and planning mechanisms are in place, implementation and enforcement vary by region and sector, and integration into broader national planning frameworks is still developing.

Peru's primary policy is the National Roadmap for a Circular Economy by 2030, presented by the Ministry of the Environment (MINAM) in 2025. The roadmap's objectives include reducing resource consumption and promoting recycling. However, this roadmap is largely strategic, with no binding targets. Additionally, Peru has approved sectoral roadmaps (industry; fisheries & aquaculture; drinking water & sanitation) via Supreme Decrees, laws on waste management and single-use plastics, technical regulations under consultation (for example plastic bag content and labeling), and is promoting Clean Production Agreements and stakeholder pacts (like the Pact for a Circular Economy). There are no public procurement standards, clear consumer repair rights, nor full alignment of reuse, design, and materials policies.

Peru shows evidence of investment in green mobility and has established long-term targets, but its policies are not yet fully comprehensive. The country has initiated pilot projects (150 electric buses for Lima's Metropolitano system, financed by the World Bank) and set goals for electrification, but it lacks coordinated, funded plans for full system-wide electrification, as well as robust incentives needed for private-sector uptake. A law on electromobility is stalled in Congress, and the government is currently drafting regulations for charging infrastructure.

"Peru aims to achieve 60% renewable electricity by 2025, predominantly through hydropower, with goals eventually approaching 100%. Solar and wind deployment remains nascent. The IFC’s 2025 Peru Energy Report highlights the need for battery storage, rural electrification, and reforms to accommodate intermittent renewables. Investment is growing, but there is no formal 90% renewable target for final energy consumption, and fossil fuels remain prevalent in transport and industrial sectors."

"Peru has integrated green employment into national strategies via the UN‑PAGE initiative and the National Policy for Decent Jobs. Programs supporting green entrepreneurship, circular economy, and vocational training for youth and women are underway. The World Bank and ILO forecast significant potential for green jobs in forestry, agriculture, and clean energy. However, a unified national just-transition framework is not yet in place, and inter-ministerial coordination remains limited."

Peru has begun to introduce just transition thinking into climate and green economy policy through PAGE-supported green jobs initiatives and inclusive stakeholder dialogues (especially for NDC revision), and the updated National Climate Change Strategy to 2050 (ENCC 2050) mentions social inclusion and targets disadvantaged and excluded groups as direct beneficiaries. However, a national just transition framework is not yet in place.

Government programmes like Innovate Peru (now under ProInnóvate, Ministry of Production) and the Fund for Social Development Cooperation (FONCODES) provide technical assistance, funding and support for entrepreneurs. Private financial institutions, like Financiera Confianza, also launch green credit products specifically for MSMEs. The National Strategy for Competitiveness and Productivity (2019–2030) explicitly recognizes MSMEs as central actors for a green transition. The country adopted the Collective Benefit Enterprise law in 2021 which allows for-profit companies to adopt this special qualification. It is still not a separate legal form.

"Peru has scaled its social protection network with digital tools and targeted support for vulnerable groups. A $500 million World Bank program focuses on climate resilience, disaster management, and inclusive electrification. While these approaches show progress, they are still not part of an integrated national strategy linking social protection to the green economy, with climate considerations only partially embedded. Pilot programs are expanding but remain fragmented.

Peru has a conservation strategy but recent policy and political actions have created uncertainty regarding the effectiveness of its implementation and the achievement of targets. The Estrategia Nacional de Diversidad Biológica and the new Master Plan for Natural Protected Areas (PDANP) to 2050 demonstrate strategic commitment to conservation, aiming to meet GBF targets, including the 30x30 goal, through protected areas and Other Effective Area-Based Conservation Measures. However, progress is undermined by a lack of fully updated, GBF-aligned NBSAP submission, ongoing political instability, and concerning legislative efforts (as of 2025) that seek to loosen environmental protections for oil/gas, mining, and other resource extraction within or near protected areas, including Indigenous territories. Furthermore, recent amendments to the Forestry and Wildlife Law threaten to incentivize deforestation.

The National Institute of Statistics and Informatics produces environmental statistics, but there is no evidence of a comprehensive System of Environmental-Economic Accounting (SEEA), or that they explicitly distinguish the value of nature to communities and the economy. No evidence of the existance of a governance body with advisory capacity.

Peru has pieces of sustainable agriculture & food systems policy in place. Laws have been enacted to reduce food losses and waste (Law 30988), healthy dietary guidelines are published, and there is a legal framework and strategy for food and nutritional security, including school feeding programmes that aim to procure locally and improve meal quality. Agricultural innovation programmes exist, supporting small and medium producers, including through technology, research, and localised support. However, there is no national food systems strategy that aligns all relevant dimensions with ambitious long-term targets.

The Ministry of Agrarian Development and Irrigation (MIDAGRI) is leading a shift toward more climate-resilient practices and has launched projects like the "Andes Resilientes al Cambio Climático" to benefit small farmers.

In 2025, the government presented a new list of 150 climate measures, which includes actions to reduce emissions from agriculture and improve forest management.

In August 2025, the Peruvian government (in collaboration with GGGI, MINAM, and others) launched a project “Accelerating biodiversity conservation in the Peruvian Amazon: innovative and inclusive financial mechanisms” aiming to mobilize USD 500 million by 2027 via thematic bonds, a pilot habitat bank, and payments for ecosystem services (MERESE). Under BIOFIN Peru, the government is designing multiple biodiversity finance “solutions”—including increasing public investment in biodiversity, integrating biodiversity criteria into public investment systems (Invierte.pe), “Work for Taxes” schemes, and exploring green credit / bond instruments. Peru has a Sustainable Bond Framework published by the Ministry of Economy and Finance, used to guide issuance of green / sustainable sovereign debt. There is no evidence of a binding national policy reform that removes harmful subsidies, and the scale of investment is still modest relative to the country’s biodiversity financing needs.

Peru has begun to embed green orientation in its post-COVID recovery, notably through the World Bank–backed “Strengthening Foundations for Post COVID-19 Recovery” program (with structural reforms and a Transmission Investment Plan), which includes climate smart recovery components. However, these are mostly enabling or sector-limited reform measures rather than large-scale green stimulus. More recent economic policy, such as the Budget 2025 "Investment Boost" tax incentive for business assets, is a broad economic stimulus measure that, while potentially applicable to green investments, is not explicitly targeted at carbon reduction or ecological sustainability, and lacks mandatory green conditionality. Similarly, proposed legislative changes, like the Fast-track Approvals Act and changes to the Resource Management Act, are primarily aimed at streamlining infrastructure and investment, which introduces an increased risk that projects could be fast-tracked without sufficient environmental scrutiny.