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Mitigating Deforestation in Peru through Land Use Formalization

IATI Identifier: XM-DAC-47136-PE05
Published in IATI IATI
  • date_range Jan 01, 2019 - Dec 31, 2020
  • autorenew Closed (Status)

Half of Peru’s GHG emissions come from the land use sector. Most of these emissions are a result of deforestation processes related to smallholder agricultural producers in the Peruvian Amazon. A major driver of deforestation is the lack of land tenure rights for smallholders which reduces their commercial opportunities, makes access to financial resources difficult, and increases overall risk. To address this issue, the Government of Peru has developed an innovative land tenure mechanism to formalize smallholder farmers called the Agroforestry Concession (AfC). AfCs offer a renewable usufruct contract for 40 years to thousands of eligible farmers currently encroaching on public forest domain in the Peruvian Amazon. Upon award, farmers commit to avoid deforesting, conserve remnant forests, maintain or establish sustainably managed agroforestry systems, and implement soil and water conservation measures. Public financial incentives need to support the small-scale farmers that choose to enroll in the AfC system and comply with its environmental requirements, but they are currently not aligned towards this goal. A key challenge for AfC adoption is ensuring that tangible incentives are in place. Providing secure land tenure through AfC contracts alone will not be enough to ensure widespread adoption of the AfC system and compliance with its environmental terms. If current public agricultural programs were to support this new mechanism, it would offer increased opportunity to actively engage more smallholder producers than at present. More importantly, support through public funds will lower overall risk in zero-deforestation supply chains of small-scale producers and provide the foundation for green private investment.

  • Forestry policy and administrative management error
    Sector code:
    31210 - Forestry policy and administrative management
    Sector vocabulary:
    1 - OECD DAC CRS Purpose Codes (5 digit)
  • Reporting Organisation error
    Sector code:
    SL - Reporting Organisation
    Sector vocabulary:
    99 - Reporting Organisation

Participating Organisations

Organisation Name Organisation Type Organisation Role
Global Green Growth Institute Multilateral Implementing
AGROIDEAS Other Funding


Transaction Value Provider Receiver Type Date
131,618 USD (Valued at Dec 31, 2019) circle Provider N/A circle Receiver N/A Expenditure date_rangeJan 01, 2019


130,233 USD
130,233 USD (Valued at Dec 31, 2019) date_range Jan 01, 2019 - Dec 31, 2019
access_timeUpdated on Aug 04, 2020 10:11:22
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