The Inter-American Development Bank (IDB) has approved a $20 million loan and $2 million in nonreimbursable investment financing from the France-IDB Natural Capital Lab Trust Fund (NCL) to increase biobusiness investments in the Amazon region of Peru and contribute to sustainable use of natural capital.

The program will help meet the target market’s diverse needs by offering a menu of innovative financial products for private investment in biobusinesses engaged in the restoration and conservation of the region’s natural heritage.

To this end, the Corporación Financiera de Desarrollo (Development Financial Corporation, COFIDE) will establish and manage a trust that will be capitalized by the Environment Ministry as trustor. This trust will finance eligible projects both directly and through financial institutions that have completed an accreditation process.

The program will directly benefit nearly 6,500 private biobusinesses. Its indirect beneficiaries include all value chain participants through better coordination and distribution of benefits, and the region’s communities as a whole, thanks to the implementation of practices that promote biodiversity conservation and services promoting sustainable use of the ecosystem.