Peru is the third largest country in South America in terms of area and is one of the region's emerging economies. In recent years, it has distinguished itself through continuous economic growth as well as considerable development progress and notable successes in the fight against poverty. Only about one fifth of the 33 million inhabitants are now considered poor, compared to almost half in 2006. Nevertheless, social inequality and development disparities between urban and rural areas remain high. The Corona pandemic hit the country particularly hard with a high death rate and an economic decline of around 11% in the pandemic year 2020, but an economic recovery began as early as 2021.
KfW Development Bank is supporting Peru on behalf of the German Federal Government primarily in its efforts to protect the climate - especially in the context of sustainable urban development - and to protect biodiversity.
Peru is home to the second largest area of tropical rainforest in South America and the fourth largest tropical forest area in the world. It is the basis of life for many people; numerous animal and plant species are found there, but it is also of great importance for the climate.
Currently, more than 17% of the country is designated as protected zones. But the rainforest is threatened by illegal logging, coca cultivation and prohibited mining practices. Agriculture often spreads uncontrollably and endangers the ecological balance and biodiversity of the region.
KfW Development Bank supports the Peruvian government in protecting and preserving these ecologically valuable areas. This involves, for example, improving and expanding the management of national protected areas. At the same time, sustainable forestry management is supported in order to stop illegal logging and destruction of the rainforests, while still enabling ecologically sustainable use of the extensive forest resources in the long term.
Urban centres contribute significantly to greenhouse gas emissions, pollution and resource consumption. In Peru, a high and increasing proportion of 78% of the population lives in urban areas. Due to deficient urban and infrastructure planning as well as rapid population and economic growth, cities are particularly vulnerable to the negative impacts of climate change, such as declining water availability due to the ongoing melting of Andean glaciers.
KfW Development Bank is supporting Peru in the sustainable provision of public services so that the cities offer a more liveable and climate-resilient environment for their inhabitants in the future. The priority areas of cooperation in this context include, above all, the security and continuity of drinking water supplies, improving the treatment and reuse of wastewater, the integrated management of waste and the promotion of a circular economy, sustainable and climate-friendly urban mobility, and the support of approaches towards energy efficiency in buildings.
KfW Office Lima
Director KfW Office: Simon Erhard
Av. Prolongación Arenales 801
Lima 18 Miraflores
Perú
Phone: +51 12 22 22 33
Fax: +51 12 22 02 42