World Bank Supports Climate Action and Economic Recovery in Peru

WASHINGTON – The World Bank’s Board of Executive Directors today approved a contingent credit under a program to support the Peruvian government’s policies to foster climate change adaptation and promote a greener, more sustainable economic recovery.

This US$750 million program is the second and final loan in a series of loans to bolster reforms aimed at improving the efficiency of public and private investments. It also addresses the impacts of climate change and builds Peru’s capacity to weather climate shocks by strengthening institutional capacity for disaster risk management and for risk integration that delivers more resilient urban planning.

The program fosters the transition to a greener economy by promoting greener and more efficient public and private investments, clean energy, and sustainable housing and transportation systems, which support the development of cities that are more environmentally friendly, efficient, and productive, thereby reducing greenhouse gas (GHG) emissions and local pollutants.

According to Issam Abousleiman, World Bank Country Director for Bolivia, Chile, Ecuador, and Peru, “The World Bank remains firmly committed to supporting Peru’s response to multiple crises and its efforts to be a more climate-resilient country that is transitioning to greener energies and to quickly get back on the path toward sustainable and inclusive growth.”

This operation is structured as a contingent credit line designed to respond to challenges and shocks, including the impacts that could be caused by El Niño, which is forecasted to be strong in the coming months.