Market Readiness Proposals (MRP) Presenta>on Country: Peru ... Final MRP Presentation.pdf ·...

Peru’sMarketReadinessProposal(MRP)PA14–Lima–April2016

MarketReadinessProposals(MRP)Presenta>on

Country:PeruResponsibleagency:MinistryofEconomyandFinance(MEF)&MinistryofEnvironment(MINAM)Dateofsubmission:April,2016


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MRPObjec>vesandFocusMarketReadinessProposalSummary

Outline


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MRPobjec>vesandfocus


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u  Developmentofacountry-specificNAMAevalua8onframework,ensuringconsistencywithPeru’sdevelopment,climateandfiscalpolicyobjec8ves.

u  Assessmentofthecurrentna8onalpipelineofNAMAproposals/conceptsandotherpriori8zedsectormi8ga8onini8a8vesagainstthisevalua8onframework,andiden8fica8onofasubsetofNAMAswithhighestpoten8alforGHGemissionsreduc8onscredi8ng.

u  Elabora8onofthedraIMRPforPeru,describing:§  Proposedcoremarketreadinessac8vi8esatthena8onalleveland§  ProposedNAMAsandcorrespondingapproachesforcredi8ng,forfurther

assessmentanddesignduringtheimplementa8onphase

MRPObjec>vesandFocus


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MRPReviewProcess


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MRPReviewProcess

FeedbackAnalysisoffeedbackbyFocalPointsandPMRteam

Consulta>onsCoordina8onmee8ngswithrelevantactorsFocalPointsmee8ngswithPMRteam

FinalMRPMRPreviewedandapprovedbyFocalPoints


SpecificfeedbackandcommentfromPA13:Choiceofsectorsforpilotcreditedmi0ga0onac0ons

Ac8onstaken:Insec8on2.2.:•  Thedescrip8onofthePeruMi8ga8onAc8onFrameworkwasextendeddecisivelyto

facilitatetheunderstandingoftheunderlyingselec8onprocess•  TheoutputofthePeruMi8ga8onAc8onwasdescribedinmoredetailforeachofthe

selec8onac8ons,facilita8ngthereadersunderstandingoftheselec8onandtheareasinwhichthethreemi8ga8onac8onsexcel

•  GivenitsrelevanceaspartofthePeruvian‘no-regret’approach,themi8ga8onac8ons’alignmentwithwithRBBframeworkwashighlighted.

•  Inconsidera8onofthereduceddirectmi8ga8onpoten8alofthemi8ga8onac8ononSolarPV,Peruhaselaboratedmoreontheindirectmi8ga8onpoten8alaswellasotherrelevantfactorsthatjus8fytheac8on’sselec8on.

Insec8on4.:•  InrespondencetotheJapanesecomment,Peruexpandedonhowthethreeselected

ac8onswillpavethewaytowardstheenhancedscaled-upcredi8ngprograms,emphasizingtheneedforroad-tes8ngofacomplexsystemliketheMAMSthroughsuitablemeasures.


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SpecificfeedbackandcommentfromPA13:OverallconsistencyofReadinessRoadmap

Ac8onstaken:•  Overallrevisionofdocumentinpar8cularfocusingonac8vi8esandbudget


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SpecificfeedbackandcommentfromPA13:Reviewandupdatepost-Parisofcountrycontext

Ac8onstaken:•  TheClimaterelatedPolicyonsec8on1.2wasupdatedwiththeinclusionofPeru´svisionfor

marketmechanismsbothpre-2020andpost-2020undertheParisAgreement,anditsrela8onwiththePMR.


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SpecificfeedbackandcommentfromPA13:Clarifica0onsonproposedMi0ga0onAc0onManagementSystem(MAMS)

Ac8onstaken:•  Acompletedescrip8onoftheMAMScomponentsandtheirrespec8veobjec8veswas

extended,consideringalsotheprocessandoverallobjec8vedescrip8onoftheMAMSitself.ThiswasdonewithcoherencyacrossthedocumentwheretheMAMSismen8oned:•  Execu8vesummary•  Sec8on1.1•  Introduc8ontosec8on2•  Sec8on3.3•  Sec8on4.1


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SpecificfeedbackandcommentfromPA13:LinkagesoftheMAMSwiththeRBB

Ac8onstaken:•  Anextendedexplana8onoftheRBBmoduleanditsintegratedrela8onwiththeMAMSwas

madeinsec8on3.3,describingitsrelevanceinthepriori8za8onofmi8ga8onac8ons,regardingtheaccomplishmentofspecificandmeasurablegoalsonprioritytargetmi8ga8onac8onsforthesocioeconomicdevelopment.Thiswasalsoresumedinsec8onswheretheMAMSismen8oned.


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MarketReadinessProposalSummary


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SummaryofBB1Countrycontext-Peru

EconomicdevelopmentandPolicy

•  “ElPerúhaciael2021”:Ahighlycompe88veeconomyhastobereliantonstructuresthatintegrateitsuccessfullyintoglobalvaluechains,sothatsustainableeconomicgrowthratescanbemaintainedover8me.

•  ProjectedGDPpercapitagrowthfromUSD9,870in2014to14,201by2021.

•  Resultsbasedbudge8ng(RBB)asapublicmanagementstrategythatlinksthebudgetalloca8ontomeasurableproductsandresultsthatfavordevelopment.

EnergyProfileandtendencies

•  Thefinalenergyconsump8oniss8llprojectedtoincreasebynearly70%inthenext10years.•  Theenergymatrixhasbecomeincreasinglyreliantonfossilfuelsbecauseofnaturalgas(67%in2000to

80%in2013,andisprojectedtofalljustslightlyto76%by2025).

•  Hydroelectricitywillregainapartofitsshareasof2018andtheshareofnon-conven8onalrenewableenergysourceswillincreaseto5%.

Na8onalClimateChangeStrategy iNDC

COP20LCCA

NAMApledges

Na8onalCommunica8ons

BiennalUpdateReports

Na8onalEnvironmentalPolicyAct


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SummaryofBB2Assessmentandra>onaleforfocusingonprioritytargetac>ons

Mi8ga8onAc8onProgram

Mi8ga8onAc8onManagementEn8ty

AlignmentwithResults-BasedBudge8ng

Mi8ga8onAc8onDevelopmentBenefit

•  ShortversionavailableforMi8ga8onAc8onsonearlystages

•  ProvidesinputforthefutureMi8ga8onAc8onRegistry

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3

Desk-basedanalysisofpublicavailableinforma8ononiden8fiedmi8ga8onac8ons

Interviewsandevalua8onofdetailedinforma8onprovided

1.  CementNAMA2.  SolidWasteManagement

NAMA

3.  Mi8ga8onAc8ononDistributedPVpanel

-Basedontheadapta8onoftheEvalua&onFrameworkofMi&ga&onAc&onsdevelopedbytheTaskForcetoCatalyzeClimateAc&onledbytheWorldBank

PeruMi8ga8onAc8onEvalua8onFramework Evalua8onProcess

ThePMRwillfacilitatethecrea8onofcapaci8esthatwillfosterthesector´sMRVsystemandsetthegroundforanaddi8onalsourceofpoten8alfunding


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•  Aimsatdevelopingaframeworkthatreducesemissionsandincreasesthesector´scompe88veness,simultaneously

GeneralDescrip>on

Mi>ga>onPoten>al

•  Largesubsetofpoten8almi8ga8onac8onswithvaryingemissionsreduc8onpoten8alinthesector

Ins>tu>onalorganiza>on

•  Highlyregulatedsector•  MINAMispromo8ngthisNAMAwithcommitmentfrom

PRODUCE,ASOCEM(Privatesector)andVIVIENDA

MRVandMBIsexperience

•  LimitedexperienceinMRV•  SheetsandmanualguidesdevelopedbyTheCementSustainabilityIni8a8ve(CSI)and

includesthesystemGekngtheNumberRight(allowsbenchmarkwithcompaniesfromdifferentcountries)

•  Thesectorhaveexperienceinemployingafunc8oningRBBmechanismandispreparingtoincludetheNAMA-relatedac8vi8esinaRBB

Exis>ngsupport

•  FundingfromUNDP’s“LowEmissionCapacityBuildingProgramme”forthedesignstage

•  DonorsupportfromMRPwouldprimarilybeneededforMRV

SummaryofBB2Assessmentandra>onaleforfocusingonprioritytargetac>ons–CementNAMA


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0"

5"

10"

15"

20"PM1"

PM2"

PM3"

PM4"PM5"

PM6"

PM7"

Módulo:"Programa"de"la"Medida"de"Mi8gación"

37.1"

16.8"

70"

30"

0" 10" 20" 30" 40" 50" 60" 70" 80"

EG1"

EG2"

Módulo:"En8dad"Gestora""

7.8"

41.3"

30"

70"

0" 10" 20" 30" 40" 50" 60" 70" 80"

PPR1"

PPR2"

Módulo:"Alineación"PPR"

0"

10"

20"

30"

40"BD1"

BD2"BD3"

Módulo:"Contribución"Desarrollo"Sostenible"

SummaryofBB2Assessmentandra>onaleforfocusingonprioritytargetac>ons–CementNAMA


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•  Aimsatini8a8ngandaccelera8ngthesectoraluptakeoftechnologieswithlargepoten8almi8ga8onandsustainabledevelopmentco-benefitsinthesolidwastemanagementsector.

GeneralDescrip>on

Mi>ga>onPoten>al

•  8,341,649tCO2eover15years,assumingtheuseofthreetechnologies,and10,013,446tCO2e,assumingtheuseoffourtechnologies


•  ManagedbyMINAM•  Itcanbuildonexis8nginfrastructurewithinSIGERSOL


•  SIGERSOLcanprovideimportantinforma8ononexis8ngwastemanagementpamerns•  FourregisteredCDMsthatfocusonreducingtheemissionsofsolidwasteemissions•  Strongalignmentwithanexis8ngRBBmechanism

Exis>ngsupport

•  A2-yearprogramsupportedbyNEFCOandNOAK“Programmeforsuppor8ngup-scaledmi8ga8onac8oninPeru’swastesectorundertheNordicPartnershipIni8a8ve”.

•  Poten8alsynergieswithIDB/JICA“ProjectfortheDevelopmentofSolidWasteManagementSystemsinPriorityAreas”.

•  Poten8alsynergieswiththeChiclayoprojectontheimprovementandextensionoftheIntegratedSolidWasteManagementSystemfinancedbytheSwissDevelopmentCoopera8on.

•  Poten8alsynergieswithprojectsinArequipa,PucallpaandTacnafinancedbyKfW

SummaryofBB2Assessmentandra>onaleforfocusingonprioritytargetac>ons–SolidWasteManagementNAMA


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0"

5"

10"

15"

20"PM1"

PM2"

PM3"

PM4"PM5"

PM6"

PM7"

Módulo:"Programa"de"la"Medida"de"Mi8gación"

30.8"

16.8"

70"

30"

0" 10" 20" 30" 40" 50" 60" 70" 80"

EG1"

EG2"

Módulo:"En8dad"Gestora""

16.8"

47.6"

30"

70"

0" 10" 20" 30" 40" 50" 60" 70" 80"

PPR1"

PPR2"

Módulo:"Alineación"PPR"

0"

10"

20"

30"

40"BD1"

BD2"BD3"

Módulo:"Contribución"Desarrollo"Sostenible"

SummaryofBB2Assessmentandra>onaleforfocusingonprioritytargetac>ons–SolidWasteManagementNAMA


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•  ProposesdistributedPVasanalterna8veenergysupplyforruralareasandisolatedcommuni8es,whichcannotbesuppliedwithenergyfromconven8onalgridsystems.

GeneralDescrip>on

Mi>ga>onPoten>al

•  150,000PVpanelsthatwillprovide410,000household,7,530healthcenters,and2,100schools,resul8nginareferen8alemissionreduc8onperyearof0.046MtCO2e.

•  Greatsocialandeconomicimpact(co-benefits)mainlyinbaseofpyramidpopula8on.•  Alignedwithna8onal(povertyreduc8on)andsectoral(energyaccess)priori8es.•  HasitsownRBBthatallowstocontemplateimplementa8onintheshortterm.•  Meaningfulscalabilitythroughadiversesetofsmall-scaledistributedmi8ga8onac8ons.


•  Theregulatoryframeworkforthemi8ga8onac8oniswellestablishedasitisalreadyunderimplementa8on


•  CDMeffortshaveprovidedmethodologiesforthedifferenttechnologiesappliedinthedistributedPVmi8ga8onac8on

Exis>ngsupport

•  MINEMhassignedaninvestmentcontractovertheinstallmentof150,000PVsystemsanditsopera8onandmaintenancefor15years

•  Nodonorsupport

SummaryofBB2Assessmentandra>onaleforfocusingonprioritytargetac>ons–DistributedPVPanel


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0"

2"

4"

6"

8"

10"PM1.1"

PM1.2"

PM1.4"

PM1.5"

PM1.6"

PM2.2"

PM3.4"

PM4.1"EG1.1"

EG1.3"

EG2.3"

PPR1"

PPR2"

BD1"

BD2.3"

BD3.1"

Puntaje(Máximo(y(Obtenido(por(Indicador(Clave(

SummaryofBB2Assessmentandra>onaleforfocusingonprioritytargetac>ons–DistributedPVPanel


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EmissionsReduction

MitigationActions

MitigationActionAssessment

MRVSystem(ataNational

level)

InfoCarbono

Registry

SummaryofBB3MarketreadinesscomponentsforPerutodeveloppoten>allyCredi>ngMi>ga>onAc>ons

Qualityassessmenttoensureminimumrequirementsforproposedmi8ga8onac8ons,basedontheEvalua8onFramework

Databaseoftheini8a8vesthatwillbeacceptedandapproved,accoun8ngfortheirdevelopmentstage

Adatabaseandaccoun8ngtoolofallGHGemissionsreduc8ongenerated

Instrumentsandproceduresguaranteeingthattheimplementa8onofallmi8ga8onac8vi8esandGHGemissionreduc8onsmeetsclearstandardsandregula8ons

MAMSwillhavetocoexistandfeedotherdatamanagementsystems

Objec>ve:iden>fyandpromotehighqualitymi>ga>onac>onsandkeepanaccurateaccountofallindividualtonsofGHGemissionreduc>onsthataretheresultthoseac>vi>es,whethertobeusedtofulfillna>onalcommitmentsortobecreditableandsold,whileavoidingdoublecoun>ng

IncreasedTRANSPARENCY

Func8onalregistra8onplaqorm


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SummaryofBB3Ac>vi>es

3.1Defineanddeveloptheins>tu>onalstructureandthelegalframeworkforaNa>onalMi>ga>onAc>onManagement

System

3.2Designandintroduc>onofaNa>onalMi>ga>onAc>onandanEmissionsReduc>onRegistry

3.3Designandintroduc>onofaNa>onalmonitoring,repor>ngandverifica>onsystemformi>ga>onac>onsinPeru(ata

Na>onallevel)

3.4DesignofaNa>onalMi>ga>onAc>onAssessmentFramework

3.5Developcapaci>esontheMi>ga>onAc>onManagementSystem,includingfortheMi>ga>onAc>onAssessmentFrameworkandthe

monitoringandrepor>ngsystemforeachofthethreepilotini>a>ves

3.6DeveloparosterofindependentverifiersfortheMAMS

DesignofMAMScomponents

CapacityBuilding

MAMSIns>tu>onalandLegalframework

Registry

MRV

Mi8ga8onAssessment

Legalframework

AssessmentandMRV

RosterofVerifiers


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SummaryofBB4Planningforscaled-upGHGcredi>ng

BB3:DesignoftheMAMS–Readiness

system

BB4:Highlyaccurate,poten8allycreditable,emissionsreduc8onthroughroadtes8ng

theMAMS

BB2:iden8fythemostsuitedac8onstotesttheMAMS

Feedbackprocess

Crucialsteptoadjustthe

systempriortoscalingitup


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SummaryofBB4Ac>vi>es

4.1Developandimprovethebaselineandmi>ga>onpoten>alforeachofthethreepilotini>a>ves

4.2DevelopmentoftheMRVSystemineachofthethreepilotini>a>ves

4.3ApplyandimprovetheMi>ga>onAc>onManagementSystem

4.4Enablingac>vi>esfortheCementIndustryNAMA

4.5Enablingac>vi>esfortheSolidWasteManagementNAMA

Readinessac>vi>esforeachofthe3pilotprojectsMAMSapplica>on

Enablingcondi>ons

Quan>fica>on

MRV,Capacitybuilding

Instrumentdesign,MRV,Capacity

building

Regulatoryandins>tu>onalframework,

Domes>cdemand,Capacitybuilding


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SummaryofBB5Organiza>on,Communica>on,Consulta>onandEngagement

Ins8tu8onalstructureoftheimplementa8on

Implementa>on

Establishmentandopera>onofthe

TechnicalCoordina>onUnit

Defineandimplementtheoutreachand

engagementprocess

Engagementprocess

Ac8vi8esforBB5

PMRSTAFF

PMRBUDGET

6.TechnicalCoordinationUnit(PCU)MINAM

1.SteeringCommitteeMEF-MINAM

5.NationalDirector(MINAM)

11.National/InternationalConsultants



2.ImplementationandMonitoringTechnicalCommitee

MINEM-PRODUCE-MINAM

8.Communication´sspecialist

10.TechnicalSpecialist1

3.PrivatePublicAdvisoryBoard

PMRPeruvianStakeHolders

4.AdministrationUnit

UNDP

9.AdministrativeAssistant


7.NationalCoordinator



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SummaryofBB6ScheduleandBudget–phase1

ThePeruvianGovernmentwillcomplementthePMRfundingwithanin-kindcontribu>onofUS$200,000

BuildingBlock Activity Budget

(US$)

QuarterYear1 Year2 Year3

1 2 3 4 1 2 3 4 1 2 3 4

BB3

3.1

DefineanddeveloptheinstitutionalstructureandthelegalframeworkforaNationalMitigationActionManagementSystem

250,000 x x x x x x x x x x x x

3.2DesignandintroductionofaNationalMitigationActionsandEmissionreductionsRegistry

350,000 x x x x x x x

3.3

DesignandintroductionofaNationalmonitoring,reportingandverificationsystemformitigationactionsinPeru(ataNationallevel)

200,000 x x x x x x

3.4 DesignofaNationalMitigationActionAssessment 100,000 x x x x

3.5

DevelopcapacitiesontheMitigationActionManagementSystem,includingfortheMitigationActionAssessmentandmonitoringandreportingforeachofthethreepilotprojects

200,000 x x x x x

3.6 DeveloparosterofindependentverifiersfortheMAMS 60,000 x x x x

BB4

4.1

Developandimprovethebaselineandmitigationpotentialforeachofthethreepilotinitiatives

200,000 x x x x

4.2DevelopmentoftheMRVSystemineachofthethreepilotinitiatives

300,000 x x x x x x

4.3 ApplyandimprovetheMitigationActionManagementSystem 300,000 x x x x x

4.4 EnablingactivitiesfortheCementIndustryNAMA 120,000 x x

4.5 EnablingactivitiesfortheSolidWasteManagementNAMA 120,000 x x

BB5

5.1 EstablishmentandoperationoftheTechnicalCoordinationUnit 600,000 x x x x x x x x x x x x

5.2Defineandimplementtheoutreachandengagementprocess

200,000 x x x x x x x x x x x x

TOTALPMRfundingrequest 3,000,000


MarketReadinessProposals(MRP)Presenta>on

Country:PeruResponsibleagency:MinistryofEconomyandFinance(MEF)&MinistryofEnvironment(MINAM)Dateofsubmission:April,2016

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