Climate change is already affecting coffee and cacao production across the Peruvian Amazon. Higher temperatures, changing rainfall patterns and the spread of pests are reducing crop productivity and increasing uncertainty for thousands of smallholder farmers whose livelihoods depend on these value chains. At the same time, new international requirements, such as the EU Deforestation Regulation (EUDR), are accelerating the need for more sustainable and deforestation-free production.

Responding to these challenges requires more than technical support. Farmers also need access to financial services that enable them to invest in climate adaptation, strengthen their resilience and meet evolving market demands.

Norandino is one of the most important rural financial institutions in northern Peru, with its agriculture portfolio largely made up of coffee and cacao lending for rural farmers. From there stems the ambition to evolve into a climate-informed agricultural finance institution. With the integration of climate risk assements, deforestation-free criteria, environmental and social governance into its operations, Norandino can channel more capital toward resilience for its smallholder member base, while strengthening its own risk management as a lender.

WWF will support Norandino with the following activities:

• Strengthening environmental and social governance by integrating climate adaptation, deforestation-free requirements, and gender equality and social inclusion (GESI) criteria into credit and portfolio processes.
• Building organisational capacity through dedicated climate specialists, internal training programs, producer-facing educational tools, and regional peer exchanges.
• Translating institutional foundations into preliminary design of climate financial solutions and market-linked mechanisms.
• Validating the institutional model through a pilot in climate-vulnerable Amazonian territories.

The activities above are designed to support Norandino in securing investment to enhance its operations. Once investment and implementation are underway, the project is anticipated to:

• Enhance institutional systems which enable Norandino to direct capital toward climate adaptation, improving resilience of coffee and cacao value chains
• Support deforestation-free agricultural transitions
• Strengthen portfolio-level climate risk management in agricultural lending.
• Promote resilient rural livelihoods for smallholder producers and their families, particularly women (37% of membership) and communities in Peru’s poorest regions (poverty rates 30–45%, INEI).

“For Coopac Norandino, this project represents a fundamental milestone in our long-standing commitment to small-scale agricultural producers in northern Peru. This strategic partnership with the Dutch Fund for Climate and Development marks a decisive step towards sustainability and climate resilience. Through this collaboration, we will strengthen our institution by consolidating our Environmental and Social Risk Management System (ESMS) and designing innovative credit solutions that integrate new mechanisms and digital tools for the benefit of our members. Our greatest ambition through this joint effort is to establish ourselves as a leading institution in green and inclusive finance. We want to ensure that our member families have the financial support they need to address the challenges of climate change, protect their livelihoods, and continue growing in a safe, responsible, and sustainable way.”

– Freddy García Timaná, Project Manager at Norandino Savings and Credit Cooperative.

“Protecting forests and supporting local livelihoods go hand in hand. By integrating climate and environmental considerations into agricultural finance, we can help local communities become more resilient while creating incentives for sustainable production. This is the kind of systemic change needed to accelerate the transition toward a nature-positive economy.”

– Claudia Yep, Policy, Finance for Conservation and Communications Director, WWF Peru

“Climate change is reshaping agriculture, and financial institutions have a critical role to play in helping farmers adapt. Through the Origination Facility, we support institutions like Coopac Norandino in embedding climate risk management, environmental and social governance, and climate considerations into their everyday operations. By strengthening these institutional capabilities, we help build more resilient agricultural portfolios that benefit both producers and nature.”

– Tania Evia, DFCD OF Regional Lead for LAC, WWF Bolivia

Road Ahead

With DFCD support, Norandino will work to build and validate an integrated, climateresilient operating model that interweaves climate adaptation, climate risk management, and environmental and social governance into its agricultural lending starting with a pilot in climate-vulnerable Amazonian territories. This approach aims to lay the groundwork for Norandino to mobilise capital at scale toward climate-resilient coffee and cacao value chains, strengthening both the cooperative’s own resilience as a lender and the livelihoods of the smallholder communities it serves across northern Peru.

For more information, please contact: Tania Evia, DFCD Regional Lead for LAC tevia@wwfbolivia.org

In case you have any grievances in relation to this project of the DFCD’s Origination Facility, please contact the service desk at servicedesk@wwf.nl.