Financing for the climate change adaptation of organic export agriculture in Peru

Abstract

The objective of this research is to analyze financing for the climate change adaptation of organic export agriculture using the methods of correlation and logarithmic regression, as well as exploring the sources of financing. In a context of high international demand, we find that Peruvian organic agro-exports grow in direct relation to the increase in the land area used for organic crops. In the period 2000–2020, exports of organic products achieved a continuous rise, and in 2020 they accounted for 7% of all agro-exports. However, so far little financing has been found internationally for the climate change adaptation of organic agriculture. Among the main financiers at the international level are the Green Climate Fund; IDB Invest, which finances an agro-export fruits and vegetable company in Peru; the FAO, which  finances  “Yachachiq–Kamayoq” network of women-led bio-businesses in actions to adapt to climate change in Peru; IFAD, which finances the agricultural project “Avanzar Rural” in the Peruvian highlands and Amazonia; and the Peruvian National Institute of Agrarian Innovation, which finances an association of farmers in the Piura region to improve the export of organic bananas to the Netherlands and Germany. It is recommended that policy-makers in Peru implement adaptation options—among them, an increase in the land area used for organic production to promote food security, as well as accessible and innovative climate financing for the adaptation of small organic producers.