PROJECT: Mobilising Investment for NDC Implementation in Peru
Mobilising Investment for NDC Implementation (MI) was launched by CDKN, SouthSouthNorth and LEDS-GP in 2017. The project works with seven partner countries around the world, namely Bangladesh, Ethiopia, Kenya, Peru, Dominican Republic, Philippines and Vietnam, to accelerate public and private investment in priority NDC sectors and markets.
In Peru, PwC UK and PwC Peru deliver the project, working with the Ministry of Environment (MINAM).
Peru is a rapidly developing country that is home to almost 740,000 square kilometres of forest area, including the largest section of the Amazon after Brazil. Whilst Peru currently only contributes 0.2% of global GHG emissions, the government has committed to reducing national emissions by 20% below business-as-usual (BAU) by 2030 (or by 30% conditional on international support). In order to achieve Peru’s NDC mitigation targets by 2030, involvement of the private sector is crucial, especially to implement the targets that are subject to the provision of financial resources.
The government of Peru has developed Nationally Appropriate Mitigation Actions (NAMAs) for various sectors, which provide a comprehensive analysis of areas for potential investment. Using the NAMAs as a starting point, the project team worked closely with Peru’s Ministry of Environment (MINAM) to identify which sector held the most potential for private sector investment. Given the lack of private sector involvement in the waste sector in Peru, and an urgent need to address the issue of unsustainable waste management,, it was decided that the waste sector would be the focus of the MPI project in Peru.
The MI team has been working with MINAM to identify opportunities to mobilise private sector investment for projects delivering sanitary landfills that provide both adequate facilities for the final disposal of waste, and emissions reductions within the waste sector in Peru. This is being done through:
- Identifying and analysing landfill gas emissions reductions and other relevant technologies to assess GHG emission reduction potential, additional environmental and social impacts, and economic feasibility as well as appropriateness for two landfill sites.
- Developing investment cases with proposed business models, financial structuring and financial projections for the proposed emissions reduction technologies at these sites, along with in-depth analysis of the investment environment of the sector, potential barriers to private investment and expected non-financial impacts of the project.
- Analysing the enabling environment for investment into emissions reductions technologies and proposing ‘investment mobilisation mechanisms’ or policy and regulatory adjustments to encourage future investment into the broader waste sector in Peru.
- Two concept notes determining the most appropriate emissions reductions technologies for landfill sites:
- Investment cases to propose business models and financial structuring for the chosen technologies for these sites (in Spanish only):
- An implementation roadmap to improve the enabling environment for private investment and involvement in the waste sector:
Timeframe: January 2018 – March 2020
Partners: PwC UK and PwC Peru
Photo: Alex Proimos