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° 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.

Criteria to determine the sustainable development: Compliance with existing national legislation and sectorial policies. 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. Contribution to economic growth and competitiveness improvement of Peru. Measurable through investment generated by the project, wealth, employment and technology transfer. 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. LEGAL ENVIRONMENTAL SOCIAL ECONOMIC II.Criteria and Approval Process for CDM Projects and PoA-CDM

1. Request for Approval 2. Review of the project by the Sector Authority 3. Convene the Ad-Hoc Committee. 4. Evaluation undertake by the Ad-Hoc Committee 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) Contributes to sustainable development ? NO II.Criteria and Approval Process for CDM Projects and PoA-CDM YES

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. SectorsN° de Project Hydro51 Fossil fuel switch6 Solid Waste5 Biomass4 Energy Efficiency4 Cogeneration3 Solar5 Effluent2 Wind4 Reforestation1 Chemical Industry1 TOTAL86 Note: 5 PoAs are considered within the 86 CDM Projects with LoA. Source: MINAM

III.Advances in CDM Projects and PoA-CDM PoA title Coordinating /Managing PoA- Type Amount of Reductions (PoA) tonnes CO 2 /annum Registration Date Methodology Tepeu Wind Programme of Activities EcoRessources Carbono S.A.C. Wind45,23525/03/2013ACM0002 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 29117/12/2012AMS-III.B. EN BADEN Large-Scale Hydro PoA in Peru Cargbn BW Peru S.A.C. Hydro36,22214/11/2012ACM0002 Inti Renewable Energy Program of Activities Energía Limpia S.A.C. Hydro89,99813/07/2012ACM0002 Tunki Small Scale Hydropower Program of Activities EcoRessources Carbono S.A.C. Hydro8,02528/06/2012AMS-I.D. Source: MINAM, 2014.

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 (*). (*)

ENCC Estrategia Nacional ante el Cambio Climático ENLCDS Estrategia Nacional de Lucha contra la Desertificación y Sequía ENDB Estrategia Nacional de Diversidad Biológica CMNUCC Convención Marco de las Naciones Unidas sobre Cambio Climático CDB Convenio sobre la Diversidad Biológica CNULD Convención de las Naciones Unidas para la Lucha contra la Desertificación NAMAS Medidas Nacionales Apropiadas de Mitigación CONTRIBUCIONES NACIONALES (iNDC) PEBCC Plan Estratégico de Bosques y Cambio Climático PLAN PERÚ: Compromiso Climático NAP Plan Nacional de Adaptación APORTES DEL SECTOR AMBIENTE AL PROCESO DE DESARROLLO NACIONAL PLANAA Plan Nacional de Acción Ambiental CRECIMIENTO VERDE COMPETITIVO E INCLUSIVO  Crecimiento Económico  Competitividad  Inversión catalizadora  Inclusión social  Conservación de RR.NN.  Innovación PLAN BICENTENARIO Plan Nacional de Diversificación Productiva Agenda Nacional de Competitividad Marco Macroeconómico Multianual DESARROLLO NACIONAL SOSTENIBLE

Thank you Muchas Gracias Eduardo Durand López-Hurtado General Director Department of Climate Change, Desertification and Water Resources Ministry of Environment – Peru