Models to address drivers of deforestation in Peru - Sustainable Amazon Businesses (SAB)

Start and end date: August 2018 – July 2021 (currently being extended)

Geographic area: Ucayali region, Peru

Funders: Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety (BMUB) - International Climate Initiative (IKI)

Total budget: 2.000.106,00 €

Peru has introduced sustainable business models in the agro-industry and livestock sectors to reduce greenhouse gas emissions (GHG) caused by deforestation, with the goal of increasing productivity in deforested areas and achieving a deforestation-free agricultural production system. The project develops appropriate business models, analyses context-specific factors that influence deforestation, examines greenhouse gas emissions in previously prioritized value chains and addresses positive economic, ecological and social impacts during development of the models. The models are implemented in the region of Ucayali, Peru for two value chains – palm oil and cocoa – represented through 3 companies (OLAMSA and OLPASA for the palm oil value chain and CURIMANA for the cocoa and chocolate value chain). The business models have served as the basis for proper investment models that include financial analysis of the companies, cost evaluation of activities and the investment rate of return (IRR). The information is introduced to a portfolio identified by the project impact investors and social lenders that allows economic sustainability of the models. The two main goals of the project are: (1) The design of two value chain upgrading strategies that target zero deforestation goals previously agreed upon among value chain actors; (2) The implementation of three pilot zero deforestation and low carbon business models. The business models will contribute to the climate protection goals laid down in the Peruvian NDC (Nationally Determined Contribution) and NAMAs (Nationally Appropriate Mitigation Actions).

 Update on progress: The project has developed two strategies to strengthen regional competitiveness plans for the cocoa and the palm oil value chains. Both strategies were approved through a Regional Executive Resolution, No. 322-2020-GRU-GR and will serve as updated documents to the existing competitiveness plans for cocoa and palm oil.

 Read more about the implementation of pilot zero deforestation and low carbon business models with partner Climate Focus 



Cocoa value chain

Palm oil value chains