Peru Sustainable Finance State of the Market 2022

The report analyzes Peru's sustainable finance landscape, noting that while it was a regional pioneer with the first green bond in 2014, its GSS+ market has expanded more slowly than its peers. As of April 2022, the market reached approximately USD 6.6bn across 16 deals, dominated by sovereign sustainability bonds. The document identifies significant investment gaps in infrastructure (USD 110bn) and sanitation (USD 22bn), while highlighting opportunities in renewable energy, low-carbon agriculture, and nature-based solutions. It outlines structural barriers such as low market liquidity, currency hedging challenges, and political instability, and recommends the development of a national green finance taxonomy by 2025 to provide clarity and attract capital.

• Peru's sustainable finance market reached a cumulative total of approximately USD 6.6bn across 16 deals as of April 2022, making it the fourth largest sustainable market in the Latin America and Caribbean (LAC) region.
• Sustainability bonds are the dominant instrument in Peru's GSS+ market, accounting for 59% of the total volume, largely driven by sovereign issuances in 2021 totaling USD 3.3bn.
• Green bonds represent 17% of the market volume (USD 1.1bn), with 93% of the use of proceeds earmarked for renewable energy.
• Peru faces a significant infrastructure investment gap of USD 110bn between 2019 and 2038 across sectors including transport, sanitation, healthcare, water, telecommunication, energy, and education.
• The country is highly vulnerable to climate change, with projections suggesting that climate-related losses could reach 6% of GDP by 2030 and 20% by 2050.
• Peru intends to establish a national green finance taxonomy by 2025 to help identify sectors relevant to a low-carbon transition.
• The renewable energy sector is significantly underutilizing its potential; hydropower generation potential is 13 times greater than installed capacity, and wind power is 58 times greater.
• Several structural barriers hinder the growth of the sustainable finance market, including low market liquidity, high issuance costs for bonds under USD 100m, and a lack of currency hedging solutions for international investors.
• The Peruvian Government has set a conditional greenhouse gas emission goal to limit emissions to a maximum of 179MtCO2e by 2030, depending on international financing.
• The Bosques Amazónicos deal in December 2021 was the first green Climate Bonds Certified forestry deal in the LAC region, directing USD 45m to forest conservation.

APA

Vazquez, I., Ambrosano, J., Souza, L., & Bonelli, R. (2022). Peru Sustainable Finance State of the Market 2022. Climate Bonds Initiative. https://www.climatebonds.net/files/documents/publications/cbi_peru_sotm_2021_03d.pdf

Chicago

Vazquez, Iraís, Julia Ambrosano, Leisa Souza, and Raquel Bonelli. Peru Sustainable Finance State of the Market 2022. Climate Bonds Initiative, 2022. https://www.climatebonds.net/files/documents/publications/cbi_peru_sotm_2021_03d.pdf.

Wikipedia

{{cite report |last1=Vazquez |first1=Iraís |last2=Ambrosano |first2=Julia |last3=Souza |first3=Leisa |last4=Bonelli |first4=Raquel |title=Peru Sustainable Finance State of the Market 2022 |publisher=Climate Bonds Initiative |date=September 2022 |url=https://www.climatebonds.net/files/documents/publications/cbi_peru_sotm_2021_03d.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{vazquez2022peru, author = {Vazquez, Iraís and Ambrosano, Julia and Souza, Leisa and Bonelli, Raquel}, title = {{Peru Sustainable Finance State of the Market 2022}}, institution = {Climate Bonds Initiative}, year = {2022}, month = sep, url = {https://www.climatebonds.net/files/documents/publications/cbi_peru_sotm_2021_03d.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }