· European Investment Bank signs a LAIF grant agreement with the European Commission to complement a USD 100m loan for climate action projects in Peru

· The support for climate action projects via Peru’s development bank, COFIDE (Corporación Financiera de Desarrollo S.A), contributes to the achievement of a number of Sustainable Development Goals

The European Investment Bank and the European Commission today signed a grant agreement to strengthen support for climate action investment projects, primarily in the renewable energy and energy efficiency sectors in Peru. The signature took place during the UN Climate Change Conference COP 26, the annual meeting of global leaders and climate action experts.

The EUR 3.7m (USD 4.6m) EU Latin America Investment Facility (LAIF) grant agreement comprises of technical assistance support and an investment grant. The technical assistance support aims to strengthen COFIDE’s environmental and social risk management systems whilst enabling private investment in the sustainable energy sector in Peru. The investment grant component will focus on developing investment projects such as the decarbonisation of energy supply in the Amazon region. This is expected to lead to additional climate action private sector investment in the area.

The LAIF contribution complements the EIB loan signed with COFIDE last year. It is estimated that the combined EU support will contribute to the generation of circa 585 GWh/year of clean energy that will cover the demand of around 476,000 households in the Republic of Peru.

EIB Vice-President, Ricardo Mourinho Félix responsible for Latin America said: “This EU-Latin America Investment Facility grant will help COFIDE to improve their environmental and social risk management systems, whilst creating an environment enabling private investment in the sustainable energy sector. The agreement is a good example of joint EU efforts under “Team Europe”. It highlights our priorities in Latin America: contributing to inclusive growth whilst promoting Climate Action and Environmental Sustainability, in line with the EU Green Deal.”