In a pioneering project in Peru, Indigenous communities are receiving $2.30 a day in unconditional cash transfers in an effort to reduce poverty and preserve the Amazon rainforest. The project, developed by climate action NGO Cool Earth in collaboration with female-led Indigenous groups, aims to provide a guaranteed income to individuals living in three Amazonian reserves in central Peru. Since November, 188 people have been receiving daily payments equivalent to 8.6 Peruvian Soles, totaling about $310,000 over a two-year period.
The main goal of the project is to address the root causes of deforestation in the region, which are often linked to poverty. Isabel Felandro, Cool Earth’s head of programs, highlighted that poverty in these communities leads to difficult decisions, such as selling their land or engaging in unsustainable activities due to financial worries. By providing a basic income, the project aims to remove some of the incentives for destructive practices that harm the rainforest.
While $2.30 a day may seem minimal in developed countries, it can have a significant impact in these Indigenous communities. Felandro explained that the cash transfers have been used to supplement diets, cover transportation costs for children to attend school, and address other immediate needs. The project represents one of the first attempts to use universal basic income as a tool for positive environmental impact, rather than solely focusing on social and economic outcomes.
Cool Earth has a history of running cash transfer projects in rainforest communities around the world, allowing communities to collectively decide how to spend the money. The current UBI pilot takes a more direct approach, providing every individual over the age of 18 with independent cash transfers. While the efficacy of UBI programs in environmental conservation is still being studied, previous projects by Cool Earth have shown promising results, with participating communities experiencing significantly less deforestation compared to neighboring areas.
Despite some concerns about the potential unintended consequences of cash transfers, such as increased deforestation for agricultural expansion, Felandro emphasized that the scale of the project is minor. The focus is on supporting small-scale subsistence farming rather than large-scale commercial activities that could harm the rainforest. By empowering Indigenous communities with a basic income, the project aims to reduce poverty, preserve the Amazon rainforest, and support the sustainable livelihoods of those living in these vulnerable regions.