In a collaborative effort between the Peruvian Federation of Municipal Savings and Credit Banks (FEPCMAC) and the Amazon Business Alliance, led by the United States Agency for International Development (USAID), the Government of Canada and Conservation International Peru, Biocredit, an innovative green financial tool designed to boost sustainable agriculture in the Amazon region, has been launched.
This innovative product, launched in November 2023 through four Cajas Municipales de Ahorro y Crédito (CMAC), represents a milestone in financing geared towards responsible agricultural practices in nine Amazonian regions, including Amazonas, Ayacucho, Cusco, Huánuco, Loreto, Madre de Dios, Pasco, San Martín and Ucayali. Biocredit establishes environmental eligibility criteria, from the prohibition of cultivation in deforested areas to respect for protected natural areas, the implementation of agroforestry practices and the use of organic fertilizers, among others. The objective is to facilitate access to formal credit for producers with sustainable agricultural practices.
“I firmly believe that the Biocrédito will not only boost sustainable agriculture, but will also generate investment opportunities with a positive long-term impact. We are confident that this joint work will make a significant difference in the Amazon, and we are excited to be part of it”.
Designed to bring producers in sustainable value chains in the Amazon region closer to the formal financial market and provide business opportunities for the Cajas, Biocrédito has ambitious goals for its pilot phase: to reach 2,268 clients and place 13.6 million soles in twelve months. In its first two months, Biocrédito has successfully placed S/. 500,000, making steady progress towards achieving its goals, promoting sustainable agriculture in the region and laying the foundations for economic development that respects and protects the Peruvian Amazon.
