Peru: Enabling a Green and Resilient Development DPF

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The development objectives of the Enabling a Green and Resilient Development Policy Financing in Peru support Government policies to: (i) strengthen the foundations for a green economic recovery; (ii) build resilience and enhance climate change adaptation; and (iii) support the transition towards a greener economy in selected sectors. The first pillar supports reforms for a greener economic recovery. It does so by supporting the expansion of green finance to mobilize capital at scale for climate action and creating an enabling environment for public and private investments to support more effectively the economic recovery. This pillar includes policy actions for: (i) the creation of a Sustainable Bond Framework; (ii) the progressive implementation of the Building Information Modeling (BIM) methodology for public works planning and execution; (iii) the incorporation of climate externalities for public investment appraisal; and (iv) the reduction of regulatory constraints to promote more agile approval processes for Environmental Certification. The second pillar supports actions to increase the country’s resilience and accelerate climate change adaptation. It does so by supporting the Government’s policy actions to reorient its DRM strategies with a 2050 horizon, by better incorporating climate change risks and aiming to strengthen the capacities for DRM at the subnational and sectoral levels. It also supports the mainstreaming of disaster risk knowledge, including climate related hazards (floods and landslides), into land use planning, strengthening the urban development and territorial planning legal framework. The third pillar supports actions to ensure a more efficient use of natural resources and accelerate the shift towards lower-carbon technologies with a focus on the energy and transport sectors. It supports programs to transition towards lower emission vehicles and promote the development of more inclusive and efficient transit systems in cities. It also supports regulations to facilitate the expansion of renewables to close the electricity access gap in remote areas and promote the greening of the electricity grid through technology neutral auctions. Last, it supports regulatory actions to promote energy efficiency in the public and private sector, including legislation so that new buildings incorporate low-carbon technologies, and architectural features that enhance climate mitigation and adaptation.