In a collaborative effort between the Peruvian Federation of Municipal Savings and Credit Unions (FEPCMAC) and the Amazon Business Alliance, led by the United States Agency for International Development (USAID), the Government of Canada, and Conservation International Peru, a Biocredit is now a reality. This innovative green financial tool aims to drive sustainable agriculture in the Amazon.
© Jaime Ruiz
This innovative product, represents a milestone in financing geared towards responsible agricultural practices in nine of the Peruvian Amazon regions, including Amazonas, Ayacucho, Cusco, Huánuco, Loreto, Madre de Dios, Pasco, San Martín and Ucayali. The Biocredit establishes environmental eligibility criteria, ranging from prohibiting cultivation in deforested areas, respecting protected natural areas, the implementation of agroforestry practices and the use of organic fertilizers, among others. The objective is to facilitate access to formal credit for producers with sustainable agricultural practices.
Christian Ruiz Chavarría, Investment Manager of the Amazon Business Alliance, shares his enthusiasm: "I firmly believe that the Biocredit will not only drive sustainable agriculture but also generate investment opportunities with a positive long-term impact. We are confident that this collaborative effort will make a significant difference in the Amazon, and we are excited to be a part of it."
© Jaime Ruiz
Designed to connect producers from sustainable value chains in the Amazon to the formal financial market and provide business opportunities to the Savings and Credit Unions, the Biocredit has ambitious goals for its pilot phase: to reach 2,268 clients and place 13.6 million soles (3.6 million US dollars) within twelve months. So far, in its first two months, the Biocredit has successfully placed S/ 500,000 (135,000 US dollars), steadily progressing towards its goals, promoting sustainable agriculture in the region, and laying the foundation for economic development that respects and protects the Peruvian Amazon.