--- title: NDC Capital Raising Strategy for Peru --- [![ukpact-navy-logo](https://www.ukpact.co.uk/hubfs/Core%20Site%20Files%20-%202020/ukpact-navy-logo.svg "ukpact-navy-logo")](https://www.ukpact.co.uk/) # Developing an NDC Capital Raising Strategy for Peru ### Quick links [![Back Arrow](https://www.ukpact.co.uk/hubfs/2021-Fund-Page/left-arrow.png) Back to Projects ](https://www.ukpact.co.uk/projects) Countries: Peru Status: Completed Sector: Finance ### Delivered by: [![vivideconomics-logo](https://www.ukpact.co.uk/hubfs/UK%20PACT%20Case%20Studies/Pages/Case-Study-57974427148-GFS-NDC%20Capital%20Raising%20Strategy%20for%20Peru/vivideconomics-logo.png) ](https://www.mckinsey.com/about-us/overview/alliances-and-acquisitions/vivid-economics) ### Counterparts: ## Introduction Working with key national public and private actors in Peru to develop a capital raising strategy, supporting the achievement of Peru’s Nationally Determined Contribution (NDC). To support the scale-up in capital needed to achieve the goals of the Paris Agreement, more granular information is needed on national investment opportunities and the role of public and private investors. The private sector, in particular, has a critical role to play to mobilise the necessary investments.   This project aimed to increase national capacity and mobilisation of private climate investment by developing a Private Capital Raising Strategy (CRS) for Peru. This would scale private climate-related investments and support the implementation of Peru’s NDC.   This project:   - Developed the bespoke CRS through co-development with key national stakeholders to identify capital needs and sources to meet Peru’s NDC goals, and approaches to increase the flow of capital - Supported the uptake and use of the CRS through capacity building training and expert support through engagement with public and private actors in Peru’s financial sector   By supporting the alignment of capital with national climate priorities in the crucial response and recovery periods to COVID-19, this project helped public actors in guiding capital towards a green recovery pathway.   This project was delivered in partnership with [**GGGI**](https://gggi.org/). "Proin placerat enim laoreet a amet nulla mauris at senectus faucibus tempus nisl, enim, ornare felis massa faucibus bibendum eget magnis blandit in magna eu nulla ultrices blandit diam etiam lacinia. Sed dictumst est pulvinar nulla elementum tellus gravida quis eget nulla purus habitant convallis eget tortor velit at auctor enim, vitae enim sapien posuere dui id lacus." Beneficiary Title "Proin placerat enim laoreet a amet nulla mauris at senectus faucibus tempus nisl, enim, ornare felis massa faucibus bibendum eget magnis blandit in magna eu nulla ultrices blandit diam etiam lacinia. Sed dictumst est pulvinar nulla elementum tellus gravida quis eget nulla purus habitant convallis eget tortor velit at auctor enim, vitae enim sapien posuere dui id lacus." Beneficiary Title ![UKPACT Lima_Peru](https://www.ukpact.co.uk/hubfs/UK%20PACT%20Case%20Studies/Pages/Case-Study-57974427148-GFS-NDC%20Capital%20Raising%20Strategy%20for%20Peru/UKPACT%20Lima_Peru.png) ## Context - To achieve the goals of the Paris Agreement, over 65% of the capital investment required to reach net zero by 2050 will need to occur in non-OECD countries - Achieving Peru’s climate change goals will require substantial investment increases across a range of critical mitigation and adaptation sectors - A substantial increase in in-flows of international private capital from a range of different sources and climate investment on local capital and debt markets will be needed - The private sector could play a key role as 70–80% of climate solutions are expected to be more attractive from a risk-return perspective than conventional emissions intensive alternatives by 2030 - However, finance cannot currently flow at the speed and scale required due to both a lack of detailed, concrete and realistic plans for financing NDCs – and a lack of capacity among key public actors to develop and deploy strategies Strengthening networks among local stakeholders in Peru, including the Ministry of Environment's mitigation and adaptation experts, GESI experts, and local financial institutions (e.g. PROFONANPE, COFIDE) Identifying investment needs to 2030 Sizing of key investment opportunities, covering all seven sectors in Peru’s NDC, and identification of 24 mitigation and adaptation opportunities Capital Raising Strategy report outlining recommendations for the public and private sectors to mobilise capital needed to meet the country’s NDC ambition Building capacity to deliver CRS through a series of workshops on the investment opportunities and financing barriers ## Project achievements The project's flagship CRS report supported the scaling up of private climate investment in Peru through: - Identification and sizing of key investment opportunities, covering all seven sectors in Peru’s NDC (power, transport, industry, buildings, forestry, agriculture, waste and wastewater) - Assessment of feasible sources of private finance for each investment opportunity, considering both local and international sources of private capital - Identification of strategies to mobilise additional private capital, setting out the actions that policymakers, investors and corporations can undertake to address current barriers to investment Additionally, the project has supported MINAM in its capacity to apply the CRS and to develop subsequent plans and actions to implement opportunities presented in the CRS. Finally, the project included a series of workshops and public-private engagement sessions. These successfully embedded technical knowledge among public and private actors, helping them to understand potential financial sector reforms and other activities needed to promote capital raising for climate action, and therefore help drive climate investment. Increasing GESI awareness and understanding of the needs and barriers faced by women and vulnerable groups in accessing finance Mainstreaming GESI by systematically integrating GESI considerations into NDC planning Facilitating GESI conversations between policymakers and GESI representatives around NDC investments Replicable framework for integrating GESI across NDC planning and climate investment strategy, across geographies ## GESI highlights This project supported vulnerable populations in two complementary ways. Firstly, the CSR report increased awareness and understanding of the need to bring in the private sector to support climate investment, to a granularity that identified vulnerable agents that need to be further supported. Secondly, the project directly supported conversations around NDC investments where GESI counterparts were included, encouraging more reflection and integration of GESI considerations into NDC planning. This meant a focus on vulnerable communities could be incorporated into the discussion. There is potential for the framework developed by the project to be replicated across other geographies, thus generating positive impact in several ways, including: - Helping GESI considerations to be systematically included within NDC planning, given the increased understanding of each agent’s roles and needs - Increasing the understanding of the needs and barriers to spur the development of strategies aimed at minimising barriers faced by vulnerable groups - Supporting plans and actions from both public and private organization to increasingly acknowledge the importance of climate investments from a GESI perspective, including the co-benefits that these investments can have for women and other vulnerable communities ![case-study-image](https://www.ukpact.co.uk/hubfs/UK%20PACT%20Case%20Studies/Pages/Case-Study-57974427148-GFS-NDC%20Capital%20Raising%20Strategy%20for%20Peru/case-study-image.jpg) ## Forward look While tangible changes will take some time to materialise due to the nature of the key project’s output, the CRS report outlines a set of recommendations on strategies to support a range of key actors in scaling up private climate investment in Peru. For example: - Investors can use the strategy to better understand climate investment opportunities that exist in Peru, and potential strategies for financing these opportunities - Policymakers in Peru and globally can use the strategy to identify barriers to private capital and potential strategies to address these barriers, including case studies of where capital has been mobilised - Investors, international organisations and policymakers can jointly use the strategy to identify opportunities that require blended finance or public and private coordination to unlock capital ## Explore further Lorem ipsum dolor sit amet, consectetur adipiscing elit ut aliquam, purus sit amet luctus venenatis. Vel fringilla est ullamcorper eget nulla facilisi etiam dignissim diam quis enim lobortis scelerisque. ### Resource Title #### Subtitle The Country Programmes support innovative projects in China, Colombia, Indonesia, Kenya, Malaysia, Mexico, Nigeria and South Africa. ### Resource Title #### Subtitle The Country Programmes support innovative projects in China, Colombia, Indonesia, Kenya, Malaysia, Mexico, Nigeria and South Africa. ### Resource Title #### Subtitle The Country Programmes support innovative projects in China, Colombia, Indonesia, Kenya, Malaysia, Mexico, Nigeria and South Africa. ## Similar Projects ### About UK PACT UK PACT (Partnering for Accelerated Climate Transitions) is a unique capacity-building programme. 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