Download CLIMATE CHANGE IN PERUVIAN PERSPECTIVE

CLIMATE CHANGE IN PERUVIAN PERSPECTIVE
Renzo Mendoza Castro
This is PERU…
…and so is THIS
Background notes
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Population : 27 926 000 (July 2005)
Third largest country in South America
IPPC: One of the most vulnerable to climate change
– Biodiversity hot spot (Amazon Basin)
– Abundant natural resources
– Climate variability
– Seasonal Agriculture
Poor. Its economy is growing with increasing
inequality
Understanding Peruvian Climate
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Three geographical regions: Coast, Highlands,
and Jungle.
Different altitudes and various sea currents affect
climate creating ecological stages
El Niño phenomenon:
– Warm equatorial sea current disrupts climate
patterns: heavy rains in the coast and drought
in the highlands.
– 1983 : 30% drop in primary sectors
Economic and Political Background
Economic Instability
 Terrorism during the 80s
 Structural Adjustment / Liberalization during the
90s:
– Elimination of subsidies to fossil fuels
– Privatization of power generation and
distribution
– Promotion of natural gas use
– Deregulation of Public Ground transportation
services and import of used vehicles
 Quasi-dictatorship of Fujimori
GDP : Good News at the Macro-level
Source: Peruvian Reserve Central Bank
• 2005 GDP (PPP) : 168.9 billion
• 5.6% growth
…Not Felt at a Micro-level
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Widespread unemployment
 54% population under poverty line in 2003
 Rural exodus. Urban population increased
from 35% to 70 % from 1940 to 1993
 Economic growth corresponds to an increase
in Inequality
Primary sectors
Dominated by the Service Sector
Services (including commerce): 65%
• Industry : 27 %
• Agriculture : 8%
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Energy Mix
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Nuclear 0 %
Hydroelectric 9.4 %
Other Renewable 33.1%
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Biomass : 33.1%
Wind : Negligible
Fossil Fuels 56%
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Coal : 3%
Oil : 45%
Nat. Gas : 5%
Source : WRI
GHG Emissions Profile
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CO2 is the largest GHG
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Fuel Combustion and change
of land use and forestry are
major sources
Methane is also prominent
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Agriculture is major source
*Source : CONAM. First GHG inventory
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GHG Emission in comparison
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QuickTime™ and a
TIFF (LZW) decompressor
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*Per capita energy consumption is also
low in South American standards
Source : CONAM
Climate Change Institutional
Framework
Three Main Institutions:
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National Environmental Council - CONAM (1995)
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Environmental Fund Peru - FONAM (1997)
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The Environmental Authority in Peru
Rules National Environmental Policies
Focal Point of UNFCCC and the Designated National Authority (DNA) for CDM
Non-profit institution of public and social interest
Aims to promote private investment on environmental projects as well as to
identify the sources of financing
The National Commission on Climate Change
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Presided by the CONAM
Public and private institutional members
In charge of the application of the UNFCCC and the Kyoto Agreements
Designs the National Strategy on Climate Change
Environmental Legislation
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Environment and Natural Resources Code (1991)
– Preventive policies for environmental protection
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Law for Environmental Impact Assessment (2002)
Air Quality Standards Code (2002)
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General Environmental Law (2005)
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– Sets National Environmental Policy and Management
– Ties together all previous legislation
Vulnerability
As indicated by CONAM and IPCC’s Working Group II:
Biodiversity
 Glaciers
 Coastal and Marine Ecosystems
 Public Health
 Seasonal Agriculture
 Extreme events
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National Strategy on Climate
Change (NSCC)
Incorporating Climate Change into
development process
 Reduce impacts of CC through
integrated assessments of
vulnerability and adaptation in
specific sectors
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– Identifying gaps
– Gaps prioritization
– Design and execute PROCLIM
PROCLIM
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“To strengthen national capabilities
for effective performance of the
resources in prioritized geographic
areas.”
Inventories Mitigation and CDM
in Peru
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7 institutions working in 2000 GHG inventory
Design of a system for continuous update
CDM implementation
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DNA already in place
Specialized institution for promotion
3 projects approved and 4 in process
Project Portfolio in place : 30 MM tons of reduction in 10
years
Supranational Agreements
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UNFCCC:
– Ratified in 1993
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Kyoto Protocol:
– Ratified in 2002 as a non-Annex I
country
Analysis of Position
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Third Image:
– Signatory of the Amazon Cooperation Treaty of 1978
– Influence of Brazil : ‘common but differentiated’
responsibilities
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Second Image:
– High vulnerability:
• Climate sensitive economy
– High cost of cutting emissions
– CDM provides:
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Managing emission costs
Poverty alleviation
Technology transfer
Benefits for local air quality
– Decentralization efforts at the base of the National Strategy on
Climate Change
The future
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Remains extremely vulnerable to adverse impacts of Climate Change
Permanence within Kyoto would ensure further reductions through CDM
Unlikely to relinquish the economic benefits from Kyoto:
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Peru has already designed an institutional strategy to promote projects eligible
for CDM
Peru wants investment and technology transfer
For investors: studies show that Peru still offers numerous areas of high
marginal reductions per investment.
Not likely to enter Annex-1 for the post-2012 period
Peru will push for the prevalence of no reductions commitments for
developing nations
Camisea Project will ensure further emissions reductions from the switch
to natural gas
Could engage in voluntary reductions in an effort to appease those who
argue for stricter commitments for developing nations