Building a strategic framework for reducing climate change risk and vulnerability: Unlocking climate finance to ensure long-term adaptation in Peru

Peru is currently developing key elements for ensuring long-term adaptation to climate change. The Peruvian Framework Law on Climate Change will secure the mainstreaming of adaptation measures into sectoral and subnational planning and budgeting, and strengthen the incorporation of climate change considerations into public institutions in the years to come. The ruling of this law together with past efforts will ensure that an array of innovative mechanisms put in place to optimise public expenditure on issues such as reconstruction, ecosystem services, natural infrastructure and disaster risk management take into account the climate change-related risks to become effective means for adaptation.

These efforts are complemented by a bottom-up effort closely linked to the work on adaptation under the Peruvian Nationally Determined Contribution (NDC) to improve access to international funding for adaptation through the Global Environmental Facility (GEF), the Green Climate Fund (GCF) and the Adaptation Fund (AF) as well as other bilateral and multilateral sources. In addition, they target the development of methodological tools for conducting economic valuation of adaptation measures, including avoided co-benefits and costs.

This case study constitutes a good practice because of its innovative approach to developing new mechanisms and adjusting existing ones to mainstream adaptation. It also promotes long-term transformational change and is aligned with national and international frameworks.