Peru is putting stock in one of its most important natural resources: the country’s stunning ecological diversity.
In a joint effort with the United Kingdom government, Peru officials announced a plan to roll out green bonds to take on climate change and boost the country’s eco-friendly infrastructure. Green bonds are investment alternatives for both private companies and public organizations that help finance positive climate and environmental efforts.
Lucía Ruíz, the Vice Minister of Peru’s Strategic Development of Natural Resources, announced the initiative with London Mayor Charles Bowman at the Lima Stock Exchange Monday. The Green Bonds Guideline, as the eco-friendly financing project is being called, will be financed by the British Embassy in Lima.
“This is the first joint initiative for the development of Peruvian marketplace that includes green bonds,” read a statement from the British Embassy in Peru. “The Green Bonds Guideline will outline the basic principals that need to be followed to hand out green bonds that finance relief projects and or adaption to climate change.”
International cooperation is necessary to reversing climate change, as we’re all in the same boat when it comes to global environmental disasters, Bowman said at Monday’s press conference.
“Combating the effects of climate change is a challenge,” the mayor said. “We have to be confident in the power of international collaboration to find the correct solutions.”
The development of infrastructure that doesn’t negatively impact the environment is a key issue in Peru, where past governments have been criticized for allowing oil companies into previously protected Amazon territories. In addition, a new highway project green-lighted by Congress at the end of 2017 could destroy hundreds of thousands of acres of important Amazonian forest in eastern Peru, critics say. Infrastructure projects like these also threaten fragile indigenous populations in these areas.
In Peru and beyond, establishing incentives for private and public enterprises to be more eco-friendly is a vital key to maintaining stability, especially in developing countries.
Ruíz said Peru and all other countries in the world need to take the steps to shore up solid environmental regulations.
“We are not the exception and that is why we, as a country, are oriented towards green growth. In other words, with sustainable investments, environment-friendly projects, and good business practices,” said Ruíz per the country’s Andina news agency.