CAF -development bank of Latin America and the Caribbean- has presented its Economy and Development Report (RED) in Lima under the title 'Global Challenges, Regional Solutions: Latin America and the Caribbean facing the climate and biodiversity crisis'. This report provides details on the problems related to climate change and biodiversity loss that affect Peru and the entire region.

The CAF report was presented at the Callao Naval Base. B.A.P. Carrasco, specifically on the Polar Oceanographic Ship, which promotes diverse scientific research on the Peruvian coast and the Antarctic continent, in an event that brought together government leaders, economic development experts, academics, members of civil society and CAF representatives. The study highlights a series of relevant data for Peru that are crucial for the country's future.

On site, CAF Executive President Sergio Diaz-Granados noted, "Peru, like many nations in Latin America and the Caribbean, is facing a climate crisis that threatens not only its natural environment, but also the stability and prosperity of its people. The challenges arising from climate change are undeniable and affect all layers of society. To solve them, participation is required at the governmental level and throughout Peruvian society, urging collaboration and the adoption of policies and practices that promote biodiversity conservation, carbon emissions reduction and adaptation to climate change. With this report and our goal of becoming the region's Green Bank, we contribute to a debate that should be a priority for all of us".

For her part, the Minister of Agrarian Development and Irrigation, Jennifer Contreras Álvarez, stated that as part of the Government's policy, the sector is part of a multi-sectoral effort involving various ministries and institutions, which has been adopting measures to face the challenges of climate change, as evidenced by the prevention actions in the presence of the El Niño phenomenon in the north and south of the country.

Peru and the impacts of climate change

The report emphasizes that Peru is highly vulnerable to the effects of climate change due to its geography and socioeconomic conditions. In recent years, an increase in the frequency of extreme weather events has been observed in the country. From 1980 to 1999, an average of 1.3 extreme events per year were recorded, while in the period from 2000 to 2021, this number increased to 2.7 events per year. This has resulted in an increase in the number of people affected, which rose from 253,000 annually to 455,000 people in the same period.

A striking fact is the degradation of tropical glaciers in Peru due to global warming. Although the country is home to most of these glaciers in the world, their coverage has decreased significantly in recent decades. This has serious implications for the availability of water resources and for the tourism economy, as these ecosystems are important for both sectors.

"RED also highlights that climate change adaptation in Peru can have a positive impact on social inclusion and economic growth. The adoption of sustainable agricultural practices, investments in adaptation infrastructure, disaster risk management policies and regulatory measures are essential to address these challenges," said Pablo Brassiolo, co-editor of the report and senior economist in CAF's Socioeconomic Research Directorate.

Peru has already taken steps in the right direction in its 2021 National Climate Change Adaptation Plan. This plan focuses on key sectors such as health, fisheries and aquaculture, agriculture, water and forests. Its implementation will promote the sustainable practices and ecosystem conservation required.

Greenhouse gas emissions

The RED also analyzes Peru's greenhouse gas (GHG) emissions and its contribution to mitigating climate change. In 2019, the country accounted for 2.5% of total emissions in Latin America and the Caribbean. Although Peru's per capita emissions are below the global and regional average, key emission sectors need to be addressed.

The RED notes that land-use change and the agricultural sector are the main contributors to emissions in Peru, accounting for 42% of the total. To combat these emissions, it is essential to take measures to preserve ecosystems and increase the productivity of the agricultural sector in a sustainable manner.

Ecosystems and biodiversity in Peru

The RED highlights the wealth of biodiversity in Peru, which is one of the world's 17 megadiverse countries. However, this biodiversity is being lost at an alarming rate due to land-use change. The conservation of ecosystems is crucial, as they provide protection against extreme weather events, regulation of the local climate and absorption of carbon dioxide from the atmosphere. Peru maintains an important natural capital, with 69% of its surface area in a natural or semi-natural state, above the regional average.

The preservation of these ecosystems is essential for Peru's sustainable development, as they support key economic sectors such as fisheries, agriculture and tourism. The creation of protected areas is one of the common policies to preserve natural capital, and Peru conserves 18% of its land area and 8% of its maritime territory as protected areas. "Peruvians have a crucial role in mitigation and adaptation, and effective policies can have a positive impact on economic growth and social inclusion. The preservation of ecosystems and biodiversity is essential for the sustainable development of the country, and the implementation of adequate policies is essential to guarantee a better future for generations to come," said Ernesto Schargrodsky, CAF's Director of Socioeconomic Research.

The presentation of RED in Peru was also attended by Vice Admiral Rodolfo Sablich Luna Victoria, General Director of Captaincy and Coast Guard; Santiago Rojas Arroyo, CAF's Northern Regional Manager; Milagros Sandoval, General Director of Climate Change and Desertification of MINAM; Johana Kamiche, Director of the Research Center of the Universidad del Pacífico; Claudia Yep, WWF's Conservation Finance Leader; and José La Rosa, General Director of International Economic Affairs, Competition and Productivity of the MEF.

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