Project description

Title: Supporting Peru’s tropical forest protection programme
Commissioned by: Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU)
Country: Peru
Lead executing agency: Peruvian Ministry of the Environment (MINAM)
Overall term: 2010 to 2013

Context

With the world’s fourth largest area of tropical rainforest (about 65 million hectares), Peru is a key player in the battle to prevent global climate change and conserve biodiversity. However, continuing deforestation is currently presenting the country with major challenges: it is responsible for almost half the country’s CO₂ output and is threatening the habitat of many species of flora and fauna. The reasons underlying deforestation are the lucrative trade in tropical timber, informal gold mining, illegal cultivation of coca and the conversion of forest into agricultural land. On their own, ecotourism and sustainable use of forest resources are not a sufficient incentive to prevent deforestation.

About 15 % of Peru’s tropical forest is owned by indigenous communities who mostly practice subsistence farming. The indigenous communities themselves are faced with a dilemma: on the one hand, the forest is their traditional home; on the other hand, financial difficulties are forcing them to exploit the forest beyond its natural capacity to regenerate itself. Thus, they often earn the financial resources they need at the expense of the forest and its biodiversity: for example, tropical timber and endangered animal species are sold or the forest cleared to create agricultural land. This is compounded by settlers from the uplands exploiting the forest. Without financial support, the indigenous communities cannot counteract these external influences.

Objective

A long-term, sustainable policy of financial compensation (conditional cash transfer) for community schemes to conserve tropical forest ecosystems has been developed and consolidated as part of Peru’s tropical forest protection programme.

Approach

With German support, Peru’s Ministry of the Environment is developing an innovative approach to assist indigenous communities in conserving tropical forest ecosystems. Under this approach, communities that ensure tropical forest in their area is conserved receive cash transfers. This provides recognition of their role in protecting the climate and biodiversity while compensating them for their work. The financially weak communities can use these funds to implement their own investment plans and make long-term investments in their own development.