IDB Invest and FEPCMAC Join Forces to Promote Circular Economy Financing in Peru
- The agreement seeks to increase financing for circular projects in the municipal savings banks of Peru.
IDB Invest signed an advisory agreement with the Peruvian Federation of Municipal Savings and Credit Banks (FEPCMAC) to help its members identify the business potential in circular projects, including their strengths and risks, with the goal of promoting the transition to circularity through financing.
The advisory agreement will help municipal savings banks adopt a practical circular economy categorization system with a common language for classification and reporting of circular projects for the local financial sector. It also includes internal capacity building and the development of an action plan to implement them.
The circular economy offers an economic model based on the reuse and regeneration of materials, to continue production in a sustainable or environmentally friendly way.
Additionally, the agreement will include an analysis of the current state of financing of circular projects in the Peruvian financial system, with a focus on municipal savings banks. In addition, the classifications and concepts will be analyzed to generate a Circular Economy Categorization System tailored to Peru.
After defining the categorization system, eight workshops will be held to help municipal savings banks acquire and deploy internal capacity building to generate a circular economy portfolio. Four participants from the areas of business, risk, and sustainability are expected to participate from each of the 11 municipal savings banks, in addition to three members of the FEPCMAC and the IDB Invest team.
Gema Sacristán, Chief Investment Officer of IDB Invest, confirmed, "For IDB Invest this agreement shows our commitment to the private sector, especially the financial sector, by strengthening its value proposition and contributing positively to its sustainable development strategy. We hope that this agreement, through a common language in the circular economy, will promote financing to scale up circular projects in Peru and serve as a model for the rest of the region."
The joint management of the FEPCMAC, comprised of Martín Sanabria and John Sarmiento, highlighted the work of the Federation in promoting a transcendental issue such as the circular economy, since it contributes to the adoption of environmental, social and economic criteria in traditional credit granting.
The signing of this agreement reinforces IDB Invest's commitment to sustainable finance and climate action in the region through solutions that allow a transition to circularity without leaving the most vulnerable behind.
This effort is leveraged by the experience generated by the intervention of the IDB and IDB Invest in Colombia with the development of the Circular Economy Categorization System. FEPCMAC is a strategic ally given the progress made in its sustainable and inclusive development strategy.
About IDB Invest
IDB Invest, a member of the Inter-American Development Bank Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social and environmental development in the region. With a portfolio of $16.33 billion in assets under management and 394 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.
About the Peruvian Federation of Municipal Savings and Credit Banks (FEPCMAC)
FEPCMAC represents the Municipal Savings and Credit Banks (CMAC) of Peru and promotes the generation of economies of scale through joint projects for the development of new financial products and services and efficient resource management.