On March 28, 2025, the World Bank Board of Directors authorized a $500 million initiative aimed at strengthening Peru's economic resilience and its capacity to adapt to climate change. This program focuses on essential reforms, enhancing the country's adaptation and mitigation strategies to reduce its vulnerability to natural hazards. It emphasizes technological advancements in renewable energy, distributed generation, and electromobility.
The initiative is crucial for Peru's future development, aiming to minimize the impact of climate-related hazards on its population, with a particular focus on vulnerable communities. Additionally, the program intends to attract private investment and stimulate new value chains and skilled employment opportunities, thereby promoting economic growth.
Building on previous reforms, the program will advance disaster risk management, territorial planning, and renewable energy adoption. It will also address new sectors such as water supply, sanitation, and electric mobility, alongside efforts to combat deforestation in the Amazon. By focusing on high-emission sectors, the program seeks to advance a sustainable economy while bolstering the National Disaster Risk Management System, thus reinforcing Peru's resilience and sustainability.
"We are committed to supporting Peru in its transition to a resilient and modern economy. This program will not only help mitigate natural hazard impacts but also create new jobs and value chains, boosting the country's economic development," stated Issam Abousleiman, World Bank's Country Director for Bolivia, Chile, Ecuador, and Peru. "The new technological shifts supported by the program will bring innovation and private sector investment, enhancing Peru's competitiveness," he added.
This project is particularly significant for Peru, a nation known for its high exposure to climate events, and it remains committed to achieving its mitigation goals as outlined in its updated Nationally Determined Contributions (NDCs).