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CANATUR and AECID, leading Tourism Coalition for a Circular, Inclusive, and Climate-Smart Economy with the support of Green Initiative

Green Initiative, an entity recognized for its expertise in advising and certifying organizations that seek to mitigate their CO₂ emissions, is working as the technical supporting partner for the project entitled “Coalición Turística por una Economía Circular, Inclusiva y Climáticamente Inteligente” (Tourism Coalition for a Circular, Inclusive, and Climate-Smart Economy). This initiative represents a collaborative endeavor between CANATUR (National Chamber of Tourism of Peru) and AECID (Spanish Agency for International Development Cooperation), also funded by the European Union. The project is dedicated to fostering a more sustainable and low-carbon tourism model within Peru, thereby establishing itself as a crucial undertaking for the global climate agenda. This project arises in a context where the circular economy is recognized as a key tool contributing to global objectives associated with the current climate crisis. Following the signing of the Paris Agreement in 2015 by 195 countries, including Peru, a new paradigm of production and consumption was generated. The main commitment is to reduce greenhouse gas emissions and curb global warming. For the tourism sector, this represents a great opportunity and a challenge to incorporate reuse, recovery, recycling, and maximizing resource efficiency, getting the sector to incorporate these practices into its operations. The Significance of the Climate Agenda for Tourist Destinations in Peru and Globally Peru, home to iconic destinations such as Machu Picchu and Cabo Blanco, holds a prominent position in global tourism. However, in common with other international destinations, the nation faces challenges related to climate change, which exert an impact on the environment, the local economy, and communities. The reduction of greenhouse gas (GHG) emissions, particularly CO2, is of fundamental importance for the protection of these destinations and to ensure their preservation for future generations. Peru, alongside the other 195 signatory nations of the Paris Agreement, is committed to substantially reducing its GHG emissions to mitigate global warming. The Circular Economy as a Key Tool Within this context, the circular economy emerges as a potent instrument for achieving these objectives. The transition from a linear model of production and consumption, characterized by “produce and discard,” to a circular model, which prioritizes the reuse, recovery, and recycling of resources, is essential for both environmental integrity and sustainable economic growth. The general objective of the project is to implement a circular development model centered on an economy where reuse, recovery, recycling, extending useful life, and reducing the carbon footprint in the tourism sector prevail, while also boosting innovation and competitiveness fairly and equitably. The Role of Green Initiative Green Initiative has established itself as a global benchmark in providing advisory services to tourist destinations, assisting them in the implementation of sustainable practices and the attainment of climate-smart management practices. The selection of the company was predicated upon its extensive experience and recognized achievements in collaborating with tourist destinations worldwide, facilitating the integration of circular economy practices and the reduction of their CO2 emissions. Green Initiative’s mission transcends the implementation of environmental policies; the organization is dedicated to transforming the operational modalities of the tourism sector, promoting climate change mitigation in an integrated manner across the entire value chain. Project Scope and Expected Results The collaboration with CANATUR and AECID presents an opportunity to disseminate this knowledge within Peru. The project aims to implement a management model based on innovative circular economy practices in 2 tourist destinations for carbon emission mitigation. Additionally, it will promote the creation of a Sectorial Commission for Circular Economy in Tourism to implement a Roadmap and flagship actions, and strengthen the capacities of tourism system actors on climate action and cleaner, circular production. The initial intervention regions are Lima, Cusco, Piura, and San Martín, although the project will have a national impact. This tourism coalition project will yield a series of deliverables that are critical for the implementation of the transition towards a more circular and sustainable tourism sector. Green Initiative will be responsible for ensuring that these deliverables are executed with the utmost quality and efficiency. Activities will include workshops, training sessions, webinars, an international conference, and the implementation of flagship actions in tourist destinations. The project aligns with global sustainable development objectives, including the Sustainable Development Goals (SDGs) such as SDG 13 (Climate Action), SDG 12 (Responsible Consumption and Production), and SDG 11 (Sustainable Cities and Communities). With the circular economy gaining increasing prominence, a unique opportunity exists to transform the tourism sector into an engine for sustainable development, generating new employment opportunities and fostering an inclusive, low-carbon economy. Active participation from stakeholders and allies is sought through backing (R) the sectoral committee, synergy (S) in activities by contributing experience and resources, and dissemination (D) of project progress. Conclusion Sustainable tourism transcends the notion of doing good; it constitutes an urgent necessity in the face of prevailing global climate challenges. Green Initiative, in conjunction with CANATUR and AECID, is at the forefront of this transformative process in Peru, assisting tourist destinations in the adoption of circular economy practices and carbon mitigation strategies. Consequently, beyond the preservation of natural splendors such as Machu Picchu and Cabo Blanco, this collaboration contributes to a more balanced and sustainable future for all stakeholders. Green Initiative, with its demonstrated expertise and leadership, will be instrumental in enabling significant Peruvian tourist destinations to progress towards a more sustainable future. This article was written by Tatiana Otaviano from the Green Initiative Team. Related reading

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What Are Green Bonds and Why Are Prices So Low?

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In recent years, green bonds have become a powerful financial instrument, playing a key role in addressing the global challenge of climate change and funding sustainability projects. These bonds support environmentally beneficial initiatives such as renewable energy, biodiversity conservation, and sustainable infrastructure, offering both financial returns and a tangible positive impact on the environment. Despite the promise they hold, green bond prices have been lower than expected due to several market factors. However, the future of green bonds is incredibly bright, with a growing alignment between investor demand and sustainability objectives. Understanding Green Bonds Green bonds operate like traditional bonds but serve a higher purpose—financing projects dedicated to environmental sustainability. Governments, corporations, and institutions issue these bonds to fund projects such as renewable energy development, energy efficiency improvements, and biodiversity conservation initiatives. Green bonds provide an innovative solution to global environmental issues, allowing investors to support the transition to a low-carbon economy while securing returns. Moreover, the market for green bonds is expanding rapidly. With governments and corporations pledging to meet net-zero emissions targets, the demand for green financing climate and nature positive instruments is expected to continue accelerating. Green bonds are thus well-positioned to become a mainstream financial tool for a sustainable future. Why Are Green Bond Prices So Low? Several factors explain why green bond prices have been lower recently: Increasing Supply of Green Bonds As the issuance of green bonds has surged globally, supply now outpaces demand in certain markets. However, this increase in supply is a positive sign that sustainability-focused financing is becoming mainstream. As more investors adopt ESG (Environmental, Social, and Governance) strategies, demand for green bonds is expected to catch up, potentially driving prices higher in the future. Rising Interest Rates Like all fixed-income instruments, green bonds are affected by interest rates. In a rising rate environment, newly issued bonds offer higher yields, making older green bonds less attractive. However, this is a temporary challenge. As central banks stabilize interest rates, green bonds—especially those tied to long-term climate and nature positive environmental projects—will regain their appeal. Perceived Risk of Green Projects While some green bonds finance projects in emerging sectors or developing regions, where risks may be perceived as higher, this is also an opportunity. Investors who understand the long-term potential of green technologies and climate and nature positive sustainability initiatives recognize that these bonds support transformative projects that can generate both environmental and economic returns. Greenium and Market Maturity The concept of greenium, or the premium investors have historically paid for green bonds, is evolving. As the green bond market matures and expands, greenium has diminished, making these bonds more accessible. This signals a healthy market transition, where green bonds no longer command higher prices but instead offer competitive returns, aligning with the expectations of mainstream investors. Greenium and ESG Investment Strategies Green bonds are increasingly attractive to investors seeking to align their portfolios with ESG goals. The diminishing greenium, while lowering bond premiums, actually enhances the accessibility of green bonds, offering competitive returns without sacrificing sustainability. As the market for green finance grows, companies with high ESG commitments, particularly climate and nature positive, are likely to attract more capital, driving even more innovation and positive environmental impact. For investors with a long-term view, green bonds provide a unique opportunity to support projects with positive externalities while maintaining attractive returns. This alignment of financial and environmental performance makes green bonds a compelling part of any sustainable investment strategy. A Quote on Brazil’s Green Bond Market Green bonds have emerged as an essential tool for financing sustainable projects, significantly contributing to the transition to a low-carbon economy. In Brazil, the green bond market is still in its growth phase but already shows enormous potential. Since the first issuance in 2015, the country has accumulated around USD 11.2 billion in issuances. The growth of this market in Brazil is driven by the increasing demand for sustainable investments, both from institutional investors and individuals concerned about the environmental impact of their investments. Additionally, the greenium, which is the price premium that investors are willing to pay for green bonds, is directly related to the supply and, more importantly, the demand for these bonds. This phenomenon is reinforced by the commitments made by large asset managers and financial institutions to direct resources towards projects that promote sustainability. With the growing awareness of climate change and the need for concrete actions, the green bond market in Brazil has significant room for growth. The expectation is that, with favorable public policies and the continuous engagement of the private sector, we will see a substantial increase in green bond issuances in the coming years, contributing to a more sustainable and resilient future. Quotes Marcos Lima, ESG Finance and Investment Banking – Lecturer at FEBRABAN and Coordinator of Sustainable & Climate Finance at BV Bank. A Bright Future for Green Bonds Looking ahead, the future of green bonds is incredibly promising. Several factors will fuel their growth: Increasing Regulatory Support Governments are implementing policies to promote sustainable finance, including green bonds. The European Union’s Green Bond Standard is setting the stage for stronger frameworks that ensure the transparency and integrity of green bonds. These regulations will encourage more issuers to enter the market and provide investors with confidence in the impact of their investments. Climate Commitments and Global Demand With global climate commitments like the Paris Agreement pushing governments and corporations to reduce carbon emissions, the demand for green finance will only grow. Green bonds are at the forefront of financing this transition, offering an efficient way to raise capital for large-scale environmental projects. Investor Appetite for Sustainable Assets As more investors integrate sustainability into their strategies, green bonds will continue to be a key part of the solution. The narrowing greenium makes these bonds more attractive to a broad range of investors, enabling green bonds to move from a niche product to a mainstream asset class. This growing demand, coupled with an increase in green bond issuance, is expected

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Green Initiative’s Leadership in Climate-Smart Tourism at COP28

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In an era where environmental concerns are at the forefront of global discourse, the tourism sector is both a beacon of exploration and a contributor to carbon emissions. However, amid this duality, strides toward sustainable practices are being made, exemplified by the Glasgow Declaration and the dedicated efforts of organizations like the Green Initiative. As a signatory of the Glasgow Declaration, it is with immense pride and honor that Green Initiative announces its participation at COP28 in Dubai. Alongside UN Climate Change, on the 10th and 11th of December 2023, the exhibition booths nestled inside the Blue Zone. This presence shows our pivotal role in driving transformative change on the international platform. As a committed signatory of the Glasgow Declaration, Green Initiative has positioned itself as a catalyst for change, focusing on infusing climate action into the fabric of business models. Our unwavering commitment extends to guiding and empowering tourism entities worldwide to curb their carbon footprint and ultimately achieve net-zero emissions before 2050. The transformative journey of the tourism sector aligns harmoniously with the principles outlined in the Glasgow Declaration. This movement is underscored by the Green Initiative’s strategic development of the “Climate Action Guide for Tourism Businesses and Destinations.” This comprehensive roadmap equips stakeholders with practical tools and real-life examples of successful climate mitigation efforts, featuring notable instances like Machu Picchu – The First Carbon Neutral Certified UNESCO Designated Site and Bonito – The First Carbon Neutral Ecotourism Destination in the World. Beyond mere carbon reduction, the Glasgow Declaration advocates adopting eco-friendly and regenerative practices in tourism. Green Initiative stands at the vanguard, actively collaborating with international tourism entities, agencies, and hospitality chains to integrate regenerative approaches. Notably, our initiatives align with the UN Decade for Ecosystem Restoration program, showcasing projects in Peninsula de la Osa, Costa Rica, and Madre de Dios, Peru, to restore 10 thousand hectares (100,000 trees) by 2030. At its core, Green Initiative’s leadership under the Glasgow Declaration embodies a commitment to climate-smart and regenerative tourism. From spearheading decarbonization efforts in renowned destinations to fostering collaborative ecosystem restoration projects in biodiversity hotspots, our endeavors radiate a dedication to promoting positive climate and environmental impacts within the tourism sector globally. Moreover, through initiatives like the “Climate Action Guide for Tourism Businesses and Destinations,” the Green Initiative facilitates a critical alignment between public and private investments with overarching global climate goals. This guide is a beacon for industry leaders and governments, empowering them to steer their efforts toward sustainable, climate-resilient tourism practices. In essence, Green Initiative’s unwavering dedication underscores the vital role of proactive collaboration and sustainable innovation in fostering a tourism landscape that mitigates its environmental impact and nurtures the natural world it so eagerly explores. As we continue to pave the way for climate-positive tourism, our commitment remains a testament to the transformative power of aligned action and conscientious stewardship in safeguarding our planet for future generations.

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Inter-American Development Bank Launches BID CLIMATE Program with Nine Partner Nations

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In a groundbreaking move towards combating climate change, the Inter-American Development Bank (IDB) unveiled its pioneering initiative, the BID CLIMATE pilot program. This innovative financial endeavor aims to incentivize and support nations in their pursuit of environmental and climate-related goals. Announced on December 2, 2023, in Dubai, the IDB highlighted the participation of the first nine eligible projects as a significant milestone in the fight against climate challenges. The BID CLIMATE program marks a transformative approach in financial assistance, providing borrowers with a remarkable benefit: a 5% grant of the IDB loan principal. This strategic move aligns with the overarching goal of mobilizing resources for climate and nature-centric investments on a larger scale. Initially allocating a substantial $1 billion in loans, the program will kickstart ten pilot projects aimed at catalyzing sustainable initiatives. The President of the IDB, Ilan Goldfajn, expressed immense satisfaction with the enthusiastic response received at the United Nations Climate Change Conference, COP28. “The demand has exceeded our expectations, demonstrating a collective commitment to address climate and nature-related challenges. Our teams are actively collaborating with regional partners to initiate these transformative pilot projects,” Goldfajn remarked. To access this pivotal benefit, participating nations must meet three Key Performance Indicators (KPIs) specially designed to facilitate their engagement with green and thematic debt markets. These KPIs center around establishing ambitious environmental objectives, devising suitable policies and expenditures, and ensuring effective measurement and reporting mechanisms for their progress. The nine pioneering countries partaking in the BID CLIMATE program—Barbados, Belize, Brazil, Chile, Colombia, Paraguay, Dominican Republic, Suriname, and Uruguay—herald a collective commitment to proactively combat climate change and preserve nature’s integrity. Meanwhile, Latin America and the Caribbean stand prominently at COP28, contributing a multifaceted approach to tackle global climate challenges. The IDB’s Americas Pavilion serves as a pivotal platform, hosting over 30 events featuring global leaders and experts. These events span a wide spectrum, encompassing discussions on cutting-edge financial instruments, sustainable resource management, just economic transitions, and initiatives for preserving the Amazon rainforest. Journalists covering COP28 have open access to the pavilion’s events, facilitating comprehensive coverage of these critical discussions and initiatives. The IDB, established in 1959, remains committed to enhancing lives across Latin America and the Caribbean. Beyond financial assistance, the IDB spearheads research endeavors, offers policy recommendations, extends technical support, and provides training to both public and private entities throughout the region. Its unwavering dedication underscores a collective effort towards sustainable development. As the BID CLIMATE program takes flight, supported by nations committed to combating climate change, it marks a significant stride towards a more sustainable and resilient future for generations to come. For more information about the BID CLIMATE program contact Anspach,Raphael Philippe M. (raphaela@iadb.org) or Borges De Padua Goulart Janaina (janainag@iadb.org). You can also contact one of BID local offices. Source: BID

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The Impact of ASCART: How Sustainable Agriculture Can Support Climate Goals in the Amazon

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ASCART, a Conservation Association of Amazon Chestnut Producers, Safeguarding 39,765 Hectares of Biodiverse Forest in Peru’s Tambopata National Reserve ASCART, the “Association of Amazon Chestnut Producers at the Tambopata National Reserve (TNR) – Peru” has over 12 members, who are responsible for the conservation and management of 39,765 hectares of tropical forest. The TNR in southeastern Peru is an incredibly biodiverse area that is home to over 10,000 species of plants, 600 species of birds, and 200 species of mammals. It plays a crucial role in protecting the Amazon rainforest and maintaining the global climate. The reserve is also significant culturally, as it is home to indigenous communities who have lived in harmony with the rainforest for centuries. The Amazon Rainforest is now Emitting More CO2 than it Absorbs, Says Recent Study – Urgent Action Needed to Combat Climate Change and Deforestation However, the Amazon rainforest is facing significant threats from climate change, deforestation, and other environmental pressures. According to a recent study, the Amazon rainforest is now emitting more carbon dioxide than it is absorbing due to increased deforestation and forest degradation (Gatti et al., 2021). This is a concerning trend that underscores the urgent need for action to address the underlying causes of climate change and preserve the rainforest’s ecosystem. Amazon Nut Production: A Key Driver of Sustainable Forest Management and Livelihoods in the Region, but with Challenges to Sustainability and Pollinator Dependence The production of Amazon chestnuts is significant in the region as it provides income and employment opportunities for local communities, and helps to promote sustainable forest management practices. However, Amazon chestnut harvesting is a complex and labor-intensive process, and it requires careful management to ensure the long-term sustainability of the industry and the surrounding ecosystem. In addition, the Amazon chestnut tree is dependent on a specific group of pollinators, making it particularly vulnerable to habitat loss and other environmental pressures. For ASCART, the production of Amazon chestnut in Madre de Dios involves a complex supply chain, with different actors involved in harvesting, processing, and trading the nuts. The chestnuts are harvested from the wild in a sustainable manner by indigenous communities and small-scale farmers, who are associates of ASCART. The chestnuts are then transported to processing plants, where they are shelled, sorted, and packaged for export. ASCART’s Complex Supply Chain for Sustainable Amazon Chestnut Production: From Harvesting by Indigenous Communities to Export ASCART has made a significant commitment to addressing climate change and promoting sustainable practices in the Amazon chestnut industry. The efforts of ASCART towards climate neutrality, which started in 2020, earned them a competitive fund “ProCompite“ from the regional government of Tambopata valued at $45,000 thousand dollars. In 2021, ASCART introduced climate action as a key aspect of its business model, with the technical assistance of Green Initiative. As part of this process, the climate positive effect of the conservation efforts of ASCART were measured, making it visible that ASCART’s best practices were supporting the carbon capture of 29 tons of CO2 per year. ASCART Leads the Way in Climate-Smart Agriculture: Using Biodiesel and Regenerative Practices to Decarbonize its Value Chain and Support Global Climate Goals The climate smart agricultural practices applied by ASCART make this association a live example of how climate smart agriculture can support the global fight for the decarbonization of the economy. ASCART’s climate action commitment has taken them to the production of biofuels, from the chestnuts shell remainders, and the development of other regenerative practices that are decarbonizing its value chain CO2 emissions. Through the Climate Pledge signed in 2022, ASCART is now formally committed to a decarbonization agenda, with clear goals, making this association a consistent supporter of the SDGs goal 13 and the Paris Climate Agreement strategic vision. ASCART’s Sustainable Practices and Climate Neutrality Commitment – A Model for Organizations to Preserve the Amazon and Build a Sustainable Future ASCART’s commitment to decarbonization and sustainable practices is a model for other organizations to follow. By promoting sustainable forest management practices, supporting local communities, and working towards climate neutrality, ASCART is playing a critical role in preserving the biodiversity of the TNR and ensuring the long-term viability of the Amazon chestnut industry. With their ongoing efforts towards climate neutrality and decarbonization, ASCART is helping to build a more resilient and sustainable future for the Amazon. This article was prepared by Marc Tristant, from The Green Initiative Team.

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