Leveraging Satellite Data and Sustainability-Linked Bonds to Monitor Land Use in the Peruvian Amazon
Collaborating with the World Bank’s Global Program on Sustainability (GPS), ESA’s GDA AID Climate Resilience Consortium analysed deforestation in the Peruvian Amazon to support investments in SLBs and other sustainable financial tools.
Description
In collaboration with the World Bank’s Global Program on Sustainability (GPS), the European Space Agency’s (ESA) Global Development Assistance (GDA) Agile Earth Observation (EO) Information Development (AID) Climate Resilience Consortium has conducted a comprehensive analysis of deforestation in the Peruvian Amazon tropical rainforest. This analysis aims to support increased investment in SLBs and other innovative financial instruments that promote sustainable investments.
SLBs are effective for driving sustainability investments, linking debt repayment costs to achieving environmental goals like reducing deforestation. However, monitoring rainforest changes via satellites is challenging due to cloud cover, dense canopies, and rugged terrain, while ground-based methods are costly and inefficient for large areas.
To overcome this, the project used high-resolution optical and radar satellite data (Landsat and Sentinel-1) in a continuous change detection model. This provides quarterly deforestation insights over 40 years, enabling timely and accurate tracking of land use changes. Such data supports financial instruments requiring results-based payments, bridging the gap between conservation financing and investor confidence.
You can read more about this Case Study here: Satellite Data and Sustainability-Linked Bonds: Monitoring Land Use in Peruvian Amazon