THE PROCESS FOR THE LETTER OF APPROVAL AND INNOVATION IDEAS FOR POAs IN PERU Eduardo Durand López-Hurtado General Director Department of Climate Change, Desertification and Water Resources Ministry of Environment – Peru Contents I. Institutional Approach to the CDM in Peru II. Criteria and Approval Process for PoA-CDM III. Advances in CDM Projects and PoA-CDM IV. Innovation Ideas I. Institutional Approach of the CDM in Peru • The Ministry of Environment (MINAM) is the Designated National Authority (DNA) in Peru, responsible for approving and issuing the approval letter (LoA) of the country. • The National Environmental Fund (FONAM) is a private-public organization, which promotes the carbon market in Peru. FONAM elaborates the National Low Carbon Emission Portfolio, including the Programme of Activities (PoA) under the CDM and voluntary market. II. Criteria and Approval Process for CDM Projects and PoA-CDM • By Directive N°002-2009-MINAM (Assessment Procedure for approval of projects to reduce emissions of greenhouse gases and carbon capture), MINAM assesses whether the "proposed project contributes to sustainable development in Peru“ • The Letter of Approval is issued within twenty seven (27) days after the request for approval from the project developer. • During the approval process a visit to the project site is required as well as an on-site meeting with the relevant stakeholders. Afterwards, the approval decision depends on the Ad-Hoc Committee, which is chaired by MINAM. II. Criteria and Approval Process for CDM Projects and PoA-CDM Criteria to determine the sustainable development: LEGAL • Compliance with existing national legislation and sectorial policies. ENVIRONMENTAL • Compliance with environmental best practices defined in the contribution to emissions reduction greenhouse gas emissions and fossil fuel use. • Reduction of environmental pollution and negative health effects. • Promoting biodiversity protection; • Environmental sound use of land and water • Proper management of solid waste and effluents; and , • other environmental benefits. ECONOMIC • Contribution to economic growth and competitiveness improvement of Peru. • Measurable through investment generated by the project, wealth, employment and technology transfer. SOCIAL • Maintaining and/or improving the quality of life of communities near the project development. • Measurable by the impact of social investment plan in the community, employment generation and adequately remunerated, opportunities to facilitate gender equity and improvement of local infrastructure. 1. Request for Approval 3. Convene the Ad-Hoc Committee. 2. Review of the project by the Sector Authority 4. Evaluation undertake by the Ad-Hoc Committee II. Criteria and Approval Process for CDM Projects and PoA-CDM Contributes to sustainable development? NO YES 5. Issuance of Letter of Approval for DNA 6. Submission of the final version of the validated PDD to MINAM (project proponent) Notification to the project proponent (non-Approval) III. State of the CDM Projects and PoA-CDM in Peru Currently, 86 CDM projects have National Letters of Approval. 64 are registered under the CDM Executive Board, of which 13 projects have received CERs. N° de Project Hydro 51 Fossil fuel switch 6 Solid Waste 5 Biomass 4 Energy Efficiency 4 Cogeneration 3 Solar 5 Effluent 2 Wind 4 Reforestation 1 Chemical Industry 1 TOTAL 86 5% Sectors 1% 1% 2% Hydro 6% Fossil fuel switch Solid Waste 3% Biomass 5% Energy Efficiency Cogeneration 5% Solar 59% 6% Effluent Wind 7% Reforestation Chemical Industry Source: MINAM Note: 5 PoAs are considered within the 86 CDM Projects with LoA. III. Advances in CDM Projects and PoA-CDM Coordinating /Managing PoAType Amount of Reductions (PoA) tonnes CO2/annum EcoRessources Carbono S.A.C. Wind 45,235 25/03/2013 ACM0002 Programme of activities to switch from residual fuel oil to LPG in manufacturing industries in Peru Repsol YPF Comercial del Perú S.A. Fossil fuel switch 291 17/12/2012 AMS-III.B. EN BADEN Large-Scale Hydro PoA in Peru Cargbn BW Peru S.A.C. Hydro 36,222 14/11/2012 ACM0002 Inti Renewable Energy Program of Activities Energía Limpia S.A.C. Hydro 89,998 13/07/2012 ACM0002 Tunki Small Scale Hydropower Program of Activities EcoRessources Carbono S.A.C. Hydro 8,025 28/06/2012 AMS-I.D. PoA title Tepeu Wind Activities Programme Source: MINAM, 2014. of Registration Date Methodology IV. INNOVATION IDEAS: From PoAs to NAMAs • In Peru, some Nationally Appropiate Mitigation Actions (NAMAs) can take advantage from the lessons learned during the PoA process development. Study Case of PoA to NAMAs in Peru. • • • LECB Project will elaborate NAMAs and MRV for construction materials sector. With the support of Collaboration Regional Center and UNFCCC a standardized baseline will be develop for the construction material sector (brick, cement and steel). This standardized baseline can be used as input for potential NAMAs. The “Energy Efficiency Program in Latin American Artisanal Brick to Mitigate Climate Change (EELA)” is a potential initiative to scale-up a PoA to a NAMA and would take advantage from the standardized baseline. This Program was recognized by Momentum for Change (*). (*) http://unfccc.int/secretariat/momentum_for_change/items/7099.php DESARROLLO NACIONAL SOSTENIBLE APORTES DEL SECTOR AMBIENTE AL PROCESO DE DESARROLLO NACIONAL PLAN BICENTENARIO CRECIMIENTO VERDE COMPETITIVO E INCLUSIVO Plan Nacional de Diversificación Productiva Agenda Nacional de Competitividad Marco Macroeconómico Multianual Crecimiento Económico Competitividad Inversión catalizadora Inclusión social Conservación de RR.NN. Innovación CONTRIBUCIONES NACIONALES (iNDC) CMNUCC ENDB Estrategia Nacional de Diversidad Biológica ENLCDS Estrategia Nacional de Lucha contra la Desertificación y Sequía PEBCC Plan Estratégico de Bosques y Cambio Climático CNULD Convención de las Naciones Unidas para la Lucha contra la Desertificación Estrategia Nacional ante el Cambio Climático NAP Plan Nacional de Adaptación CDB Convenio sobre la Diversidad Biológica ENCC PLANAA Plan Nacional de Acción Ambiental Convención Marco de las Naciones Unidas sobre Cambio Climático PLAN PERÚ: Compromiso Climático NAMAS Medidas Nacionales Apropiadas de Mitigación Thank you Muchas Gracias Eduardo Durand López-Hurtado General Director Department of Climate Change, Desertification and Water Resources Ministry of Environment – Peru edurand@minam.gob.pe www.minam.gob.pe