C0002 Peru

In early 2019, the IRM concluded a preliminary inquiry into FP001, Peru. A preliminary inquiry is an early phase of an IRM self-initiated investigation. A self-initiated investigation is a proceeding initiated under para 12 of the IRM’s Terms of Reference (TOR) if the IRM receives information from a credible source that a GCF project or programme has or may negatively impact a community or person. In relation to FP001, the IRM concluded that there was prima facie evidence that the conditions set out in para 12 of the IRM’s TOR for initiating an investigation were met. The IRM however agreed not to initiate proceedings under that paragraph in view of an undertaking given by the Secretariat on 1 May 2019 to implement several remedial actions. The IRM monitored the implementation of these undertakings. All four undertakings provided by the Secretariat have now been completed - the issuance of guidance on Free Prior Informed Consent (FPIC) requirements, and on risk categorization for projects involving Indigenous Peoples, the completion of a legal assessment/opinion examining the potential impacts of the creation of the Áreas de Conservación Ambiental (ACA) on collective land rights of indigenous people who are part of the project, and the confirmation that the consent documentation submitted by Profonanpe for the establishment of the ACA is complete and compliant with the guidance. Upon receipt of the final progress report from the GCF Secretariat’s Division of Portfolio Management in July 2022 and confirmation from the GCF’s Sustainability Unit that AE’s actions are compliant with the guidance, the IRM decided not to initiate proceedings and to close the case. This decision is available in the IRM's Report on Outcomes of Self-Initiated Proceedings. Overall, and within a relatively short timeframe, significant institutional and project-level improvements have been made based on the recommendations of the IRM, thus averting a dispute that might otherwise have lingered and escalated to become a reputational risk to the GCF.