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Analytical work to support the development of of policy options for mid-and long- term mitigation objectives in Perú May, 2015

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Page 1: Analytical work to support the development of of policy ... 29.05... · Perú’sINDCs 1. Participatory work including other sectors. 2. Build upon what’sbeen advanced and planned

Analytical work to support the development of

of policy options for mid-and long-term mitigation objectives in Perú

May, 2015

Page 2: Analytical work to support the development of of policy ... 29.05... · Perú’sINDCs 1. Participatory work including other sectors. 2. Build upon what’sbeen advanced and planned

1. Peru’s INDCs

2 Where we started: Input

3. INDCs analyses work- PMR

4. Further work

Content

Page 3: Analytical work to support the development of of policy ... 29.05... · Perú’sINDCs 1. Participatory work including other sectors. 2. Build upon what’sbeen advanced and planned

Perú’s INDCs

1. Participatory work including othersectors.

2. Build upon what’s been advanced andplanned.

3. Adopt the contribution at a techinicaland political level.

4. Create a Long Term Action Plan(implement and control the iNDC)

Estrategia

Solid and voluntary, technically validated and

with political support for its implementation

Page 4: Analytical work to support the development of of policy ... 29.05... · Perú’sINDCs 1. Participatory work including other sectors. 2. Build upon what’sbeen advanced and planned

Perús INDC (II) : Institutional arrangements

DGCCDRH

Page 5: Analytical work to support the development of of policy ... 29.05... · Perú’sINDCs 1. Participatory work including other sectors. 2. Build upon what’sbeen advanced and planned

Interinstitutional coordination to determine the potential of GHG

emissions reductions

Economic analysis of the mitigation

options

Analysis of the iNDC’s macroeconomic

impact

Peer review of the

technical inputs

Development of guidelines for the implementation

of the iNDCs

Continued facilitation of the process by the Ministry of Environment

Perú

TIM

EL

INE

TO

PA

RIS

Complementary analysis

Meetings of the Milti- Sectoral Comission

Public consultation

Stakehiolders participation

Regional workshops

*Updated: April, 2015

Perú’s INDC (III) : Technical and participatory process

Deadline

Jan Feb Mar Apr May Jun Jul Aug Sep Oct 1 Nov 30

Page 6: Analytical work to support the development of of policy ... 29.05... · Perú’sINDCs 1. Participatory work including other sectors. 2. Build upon what’sbeen advanced and planned

Where we started : Input

Sectorial Programs Sectorial Projects

National and sectorial strategies NAMAs

National plans forPlanCC Project – Phase 1

iNDCs

Page 7: Analytical work to support the development of of policy ... 29.05... · Perú’sINDCs 1. Participatory work including other sectors. 2. Build upon what’sbeen advanced and planned

Where we started (II): Input

0.00

50.00

100.00

150.00

200.00

250.00

300.00

350.00

2010 2015 2020 2025 2030 2035 2040 2045 2050

Fast Sc. ↓ 10%

Sustainable Sc. ↓ 41%

Saving Sc. ↓ 20%

BAU 9,932

MM

Required

by science

Millones de Tn

de CO2eq

Page 8: Analytical work to support the development of of policy ... 29.05... · Perú’sINDCs 1. Participatory work including other sectors. 2. Build upon what’sbeen advanced and planned

INDCs analyses work

Private sector

Public sector

Civil Society

ContributionsMitigation

Transparent & quantifiable

Relatedreductions

Nat

ion

alIn

tern

atio

nal

Financial analysisCo-benefits

Enabling conditions Macroecoomic Simulation

Graduality

Page 9: Analytical work to support the development of of policy ... 29.05... · Perú’sINDCs 1. Participatory work including other sectors. 2. Build upon what’sbeen advanced and planned

INDCs analyses work- PMR (II)

Assess the macro-economic aspects of emission reduction pathways

Build emission-reduction pathways from the list of GHG mitigation options

Broaden the scope of the analysis of selected mitigation options: Quantified financialanalysis

Page 10: Analytical work to support the development of of policy ... 29.05... · Perú’sINDCs 1. Participatory work including other sectors. 2. Build upon what’sbeen advanced and planned

Assess the macro-economic aspects of emission reduction pathways : GDP Projections

INDCs analyses work- PMR(III)

Page 11: Analytical work to support the development of of policy ... 29.05... · Perú’sINDCs 1. Participatory work including other sectors. 2. Build upon what’sbeen advanced and planned

INDCs analyses work- PMR(IV)

Assess the macro-economic aspects of emission reduction pathways : CGE simulation

Soccial Accounting

Matrix(SAM)

BAU scenario

projection

GDP and

population

projection

Emission

Invenntory

Emission

projections

IO MAtrix,

National

accounts

Emissions

SAM Calibration

General Equilibrium ModelMitigation

Scenarios

Emission

reduction

Socioecono

mic impacts

Results

Model

Structure

Mitigation

options

GEM

BAU scenario replica

SAM 2007 with sectorial

emissions.

bottom-up and top-down

methodology

Pseudo-dynamic MEG including

USCUSS sectorScenarios

Page 12: Analytical work to support the development of of policy ... 29.05... · Perú’sINDCs 1. Participatory work including other sectors. 2. Build upon what’sbeen advanced and planned

• Equilibrated Government budget balance – no fiscal deficit in the LT

• No transaction costs

• Governent revenue are allocated to public investment, consumption

and transfers

• Endogenous capital accumulation.

• Exogenpuos productivity and labor supply growth

• Land as a factor of production

• Emission intensity factors

• 25 economic activities included in the model.

Model Assumptions

Assumptions

of the Governmen’s

Model

characteristics

INDCs analyses work- PMR(IV)

Assess the macro-economic aspects of emission reduction pathways : CGE simulation – key assumptions

Page 13: Analytical work to support the development of of policy ... 29.05... · Perú’sINDCs 1. Participatory work including other sectors. 2. Build upon what’sbeen advanced and planned

INDCs analyses work- PMR(V)

Build emission-reduction pathways from the list of GHG

mitigation options : Maccinert

Source : Vogt-Schilb et al (2014)

Aim : seek both quantity and quality of abatement, by combining a “synergy

approach” that focuses on the cheapest mitigation options and maximizes co-

benefits, and an “urgency approach” that starts from a long-term objective

and works backward to identify actions that need to be implemented early.

Page 14: Analytical work to support the development of of policy ... 29.05... · Perú’sINDCs 1. Participatory work including other sectors. 2. Build upon what’sbeen advanced and planned

INDCs analyses work- PMR(VII)

Broaden the scope of the analysis of selected mitigation

options: Quantified financial analysis

Initial list ofmitigation

options)

Estimation of main financial

indicators

Review of estimated costsand projected

cashflows

Identification of domestic financial

resources & instruments

Page 15: Analytical work to support the development of of policy ... 29.05... · Perú’sINDCs 1. Participatory work including other sectors. 2. Build upon what’sbeen advanced and planned

Further work

Presentation of the iNDCs proposal– May 28

Public consultation– June- & July 31

Presentation of the iNDCs proprosal to the internacional community– June 5

iNDCs submission– August 31

Assessment of the potential and the graduality of implementation of the iNDCs proposal - Macinert

Simulation of the CGE model including the INDCs proposal and carbon pricing alternatives

Final simulation of the CGE model (EE+ cobenefits+ adjusted information )

Results of the financial analysis of the selected mitigation options

Page 16: Analytical work to support the development of of policy ... 29.05... · Perú’sINDCs 1. Participatory work including other sectors. 2. Build upon what’sbeen advanced and planned

Thank [email protected]