Street view in Sullana, Peru

Core area “Climate and energy, just transition” Climate protection, adaptation to climate change and sustainable urban development

In Peru, climate change mitigation is just as relevant as adaptation. The aim of German development cooperation is to facilitate climate policy reforms through strategic cross-sectoral cooperation. One way to achieve this is by supporting integrated climate-smart water resources management.

According to the Global Climate Risk Index Peru is one of the 50 countries worst hit by the impacts of climate change. The country is a biodiversity hotspot and, as the second largest Amazonian country, it is making an important contribution to global greenhouse gas mitigation. In January 2022, Peru’s government adopted a national declaration proclaiming an environmental emergency. It states that there is an urgent need to take action for the national climate targets to be achieved by 2030.

A strategic partnership was established between Germany and Peru in November 2022. Under this framework the BMZ, the Federal Ministry for Economic Affairs and Climate Action, the Federal Foreign Office and the Federal Environment Ministry are supporting Peru in its efforts to implement and expand its national climate goals. In addition, support is being provided through German development cooperation to help conserve and restore ecosystems by means of climate-resilient and sustainable local agriculture.

Sustainable urban development

For many decades, the urban population in Peru has been growing rapidly. Today, around 79 per cent of Peruvians live in cities, and almost a third of the population lives in the greater Lima region (about ten million inhabitants). The aim of German-Peruvian cooperation on sustainable urban development is to secure a sustainable supply of goods and services for the growing urban population in times of climate change.


According to World Bank figures, about 50 per cent of the Peruvian population now have access to safe drinking water and almost 80 per cent have access to proper sanitation. Both in the capital of Lima and in the densely populated areas along the Pacific coast, water resources are scarce and often polluted. Sanitation systems and, above all, sewage treatment plants are not available everywhere. Particularly when it comes to rural areas, water quality still varies from region to region.

The primary goal of German development cooperation is to improve the supply of drinking water and sanitation systems for poorer sections of the population and, with private sector involvement, to adapt water resource management to climate change.

To that end, Germany is advising the Peruvian government and the newly established national authority for the management of water utilities (OTASS), among others. Cooperation between public and private players is being scaled up, and utilities are receiving support to help them make technical upgrades, reduce water losses, introduce concepts for efficient management, reform their tariff systems and improve vocational training.

Urban mobility

German experts are advising Peruvian ministries and municipalities on how they can translate the standards of national climate strategies into transport concepts – making the shift from individual transport, which is still very dominant, to an efficient, safe, accessible and also green and climate-friendly urban transport system. To that end, for instance, KfW Entwicklungsbank, acting on behalf of the BMZ, is supporting the expansion of public transport systems in selected towns and cities, and the development of cycle path networks, under Financial Cooperation.


Peru’s waste sector has seen a stark increase in both the volume and the hazard level of waste in recent years. Proper and safe disposal of waste is pivotal for environmental protection and climate action, and for the protection of water resources. Through its development cooperation activities, Germany is assisting its partners in Peru in establishing environmentally sound, resource-saving and economically viable waste management systems. Furthermore, German cooperation is also playing a role in supporting the development of circular economic systems.

Renewable energy and energy efficiency

In the field of energy policy, the Peruvian government is pursuing two key objectives: achieving security of supply through national energy sources and diversifying the energy supply. Overall, the focus of Peruvian energy policy is on expanding hydropower and developing the natural gas sector.

Making greater use of renewable energy in Peru could contribute towards a more climate-friendly energy supply for the population. Germany is therefore engaged in activities designed to ensure an inclusive, efficient and socially and ecologically sustainable energy supply in Peru, in line with the 2030 Agenda. In addition, the BMZ is working towards increasing the use of renewables and improving energy efficiency.

As at: 18/12/2022