Acorn Partnership Launches Transformative Agroforestry Project in Peru

Acorn has also made significant strides in securing government support for the project. Macdonald and his colleague Paola López-Vargas, alongside Hanna Choa and her team in Acorn’s Government Relations division, have dedicated months to careful communication and strategic meetings with the Peruvian government. The team has now received an official letter stating that the government is finalising the national registry for carbon projects, which will be part of the monitoring infrastructure for the country's various carbon initiatives. This letter is a vital initial milestone that paves the way for more detailed negotiations and the necessary regulatory clearances—without it, the project could not proceed to the next stages of development.

Peru is an ideal candidate for the launch of such a large-scale project for several reasons, says Macdonald. “Peru’s smallholder farmers are the source of a huge percentage of the country’s highest priority exports, making them a key player in the nation’s macroeconomic picture. Peru also has one of the most essential elements when it comes to these projects—an existing carbon market regulatory system. It’s not a totally new space for them, so we’re not starting from scratch in getting a green light from the government.”

Image: A representative from LWR’s partner organization Mocca liaises with a smallholder cacao farmer

“Every step in the agroforestry value chain is complex, from the careful planning of which species to plant in which optimal locations, to ensuring their growth and precise measurement. This complexity involves substantial time and resources, which might introduce some financial uncertainty, so we need to find financing solutions that recognize the value of the long-term benefits these projects can deliver, both in terms of carbon sequestration and improving farmers’ livelihoods.”

This financial gap is currently the main focus for both Acorn and LWR, with discussions ongoing to identify potential funders. Positive news arrived in August of 2024, however, when LWR succeeded in unlocking funding which allows them to apply for smallholder agroforestry finance (SAF). This is the first step necessary to transition the project from planning to implementation.

Image: Prospective participants in Peru giving input on the project’s agroforestry techniques

The Road Forward: Scaling Impact and Expanding Acorn’s Reach

Looking ahead, the collaboration between Acorn and LWR holds the potential to significantly scale Acorn’s impact in Peru and beyond. The project not only aims to generate carbon credits but also to create a sustainable, replicable model for agroforestry that can be applied in other regions. Like all Acorn projects, 80% of the revenue from CRU sales will return to the participating farmers, ensuring that the benefits of the project feed back into the local communities.

The collaboration between Acorn and LWR in Peru is more than just a project—it’s a blueprint for how cross-sector partnerships can make an incredibly complex, large-scale carbon removal unit (CRU) scheme like this a reality in partner areas all over the world. With the combination of Acorn’s scientific and carbon market expertise and LWR’s operational strengths and local network, this initiative has the potential to transform not only the lives of tens of thousands of farmers but also contribute meaningfully to the fight against climate change. With the groundwork laid and the right partners in place, the future looks promising.

In Macdonald’s words, “We’re at a critical juncture. The pieces are in place, now it’s about bringing this vision to life.”

About Acorn

We help support smallholder farmers in developing countries transition to agroforestry. Together with local partners, we facilitate the funding and training needed by farmers to start their agroforestry transition. Transforming the sequestered CO2 through agroforestry into Carbon Removal Units (CRUs), we offer carbon credits to responsible corporates to help them reach their climate goals. The growth of the trees is measured with satellite imagery, AI and LiDAR, and certified by ICROA-accredited Plan Vivo.

With 80% of the sales revenue going directly to the farmers, it creates an additional income stream and helps them adopt a more climate-resilient way of farming that improves food security, biodiversity, and financial independence.