Peru is one of the most biodiverse countries in the world, with huge reserves of natural resources. The country is a like-minded partner to the EU with a 10-year-old free trade agreement and a long-standing partnership that was recently renewed with the signature of an enhanced EU-Peru Memorandum of Understanding and a framework participation agreement in October 2022.
The EU is working to support Peru in its efforts to reach the Sustainable Development Goals, became an OECD member, strengthen EU-Peru economic and trade relations, and facilitate private and public investments in infrastructures making full use of Global Gateway.
The EU supports Peru towards sustainable and inclusive development in line with the Global Gateway Strategy. The focus lies on protecting and conserving Peru’s natural heritage as well as promoting green energy and sustainable transport.
The Team Europe Initiative in Peru brings together the EU, the European Investment Bank, as well as several EU member states. Circular transition was identified as the main sphere of work, divided into two areas: circular economy and sustainable cities. Over 70 actions by EU partners with an indicative contribution of €31 million are underway or planned within this framework.
Peru’s Annual Action Plan for 2022 puts a focus on the action ‘Transition to Circular Economy and Business’ with a budget of €14 million. A second action, ‘Democracy and Political Reform’ with €2.5 million, aims to consolidate democratic values and strengthen the electoral system and institutions.
The Annual Action Plan for 2023 includes two actions: ‘Towards a Social Protection System’ with a budget of €15 million, and the ‘Support Measure Cooperation Facility’ of €4.7 million.
Our flagship initiatives
Team Europe in Peru focuses its action in two key areas:
- Conservation and protection of the country’s natural heritage - focusing on significantly improving the conservation of Peru’s unique natural heritage, while promoting sustainable tourism and economic development in the region
- Infrastructure projects related to electricity transmission, electro-mobility and transport
- Electricity transmission - Peru recently awarded a tender for a private-public partnership for the construction and administration of a 500 kV substation transmission line in Piura
- Green energy investments - facilitating green energy investments, including decentralised energy grids in rural areas, to small and medium-sized enterprises (SMEs), through the Climate Action Framework Loan (joint EU-EIB grant)
- Water security for urban areas - ensuring safe drinking water and sustainable water management in Abancay
- Sustainable and social urban housing - facilitating access to adequate housing for low-income families (Fondo MiVivienda project)
- Urban light train - transport is a long-lasting priority with enormous potential for the reduction of emissions and pollution. Ongoing programmes being developed and implemented in several cities, such as the Urban Mobility Plan in Arequipa
- Bus rapid transit - funded with EU-Latin America Investment Facility (LAIF) grants, a study has been conducted to implement a bus rapid transit system via the Urban Mobility Plan in the town of Trujillo