Unlocking the potential of Green Enterprises in Peru

The Collective Benefit Enterprise (BIC) law in Peru, passed in 2021 to certify green organisations, has seen slow progress due to a 2022 political crisis and systemic barriers. A study by Libélula found that minimal awareness, cumbersome legal processes, and high compliance costs have limited the number of certified organisations to 45. The report argues that the Ministry of Production's ID Produce department must lead the initiative's reactivation, supported by academia, NGOs, and financial institutions, while improving government advisory services like 'Tu Empresa' and fostering networks among green SMEs.

• The Collective Benefit Enterprise (BIC) law, passed by the congress of Peru in February 2021, established a certification programme to help organisations demonstrate green credentials and increase consumer awareness of green enterprises. However, the initiative was stalled by the 2022 Peruvian political crisis and has since seen very slow progress.
• Libélula identified significant barriers to the adoption of BIC status, including minimal awareness among consumers and potential organisations, a cumbersome certification process lacking clear government guidance, and high compliance costs that deter both small and large enterprises. Consequently, only 45 organisations in Peru currently hold BIC status, primarily consisting of universities or those who proactively sought the certification.
• Specific operational obstacles include a lack of familiarity among entrepreneurs regarding the UN Sustainable Development Goals (SDGs), difficulties navigating legal formalities without expensive external support, and the burden of annual impact reports. The 'Tu Empresa' government advisory service for MSE entrepreneurs is limited by staff who have little knowledge of the BIC.
• The success of the BIC initiative depends on leadership from the Innovation, Technology, Digitalization, and Formalisation Department (ID Produce) within the Ministry of Production. Recommendations for expansion include leveraging private sector organisations, academia (such as the University of Lima), NGOs, and rural banks to provide guidance and promotion, as well as providing in-depth training for 'Tu Empresa' staff.
• There is a lack of connectivity among existing green SMEs in Peru. Libélula is addressing this by creating networks and platforms for entrepreneurs to share information and campaign, including the online portal economiaverde.pe.

APA

Brown, A. (2025). Unlocking the potential of Green Enterprises in Peru. Green Economy Coalition. https://www.greeneconomycoalition.org/news-and-resources/unlocking-the-potential-of-green-enterprises-in-peru

Chicago

Brown, Alasdair. Unlocking the potential of Green Enterprises in Peru. Green Economy Coalition, 2025. https://www.greeneconomycoalition.org/news-and-resources/unlocking-the-potential-of-green-enterprises-in-peru.

Wikipedia

{{cite report |last1=Brown |first1=Alasdair |title=Unlocking the potential of Green Enterprises in Peru |publisher=Green Economy Coalition |date=7 February 2025 |url=https://www.greeneconomycoalition.org/news-and-resources/unlocking-the-potential-of-green-enterprises-in-peru |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{brown2025unlocking, author = {Brown, Alasdair}, title = {{Unlocking the potential of Green Enterprises in Peru}}, institution = {Green Economy Coalition}, year = {2025}, month = feb, url = {https://www.greeneconomycoalition.org/news-and-resources/unlocking-the-potential-of-green-enterprises-in-peru}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }