Redefining finance for agriculture: green agricultural credit for smallholders in Peru

The majority of Peru’s greenhouse gas emissions (GHG) comes from land use change, primarily caused by agricultural expansion into native Amazon forest. This occurs mostly in small patches and has historically been associated with smallholder agriculture. This means Peru’s agricultural sector needs to change if the country is to meet its climate targets.

Smallholders in the Amazon are one of the most vulnerable groups in Peruvian society. According to the most recent poverty statistics in Peru, around half of rural populations are poor. The jobs generated in these regions are predominantly in agriculture, and rural smallholders have not benefited equally from financial inclusion efforts, which concentrate in urban areas. Without access to the finance needed to transition to sustainability, smallholders are trapped in a cycle of deforestation.

This major new report details how this cycle of deforestation can be broken.

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