Peru

Graduating Country:
Peru

Peru’s National Strategic Plan for Development focuses on turning sustainability into a driver of long-term prosperity.

Overview

Peru has an abundance of natural resources that serve as the backbone of its economy but decades of resource-driven growth have degraded the environment, resulting in water and air pollution, soil erosion and deforestation. This has affected all segments of society, particularly the most vulnerable. In recent years Peru has made significant efforts to offset the balance between economic growth and environmental preservation and build sustainability as a driver into its national policy framework.

PAGE commenced work in Peru in 2014, with the aim of promoting efficient use of resources, environmental quality, and green jobs creation. PAGE has since supported the integration of green growth into national planning, assisted the implementation of green sectoral and thematic policies and built both individual and institutional capacity to support long-term change. In 2018, Peru reached an important milestone with the approval of its National Competitiveness and Productivity Policy that includes a chapter on sustainability.

PAGE work has resulted in several achievements, including: approval of national level green policies to boost competitiveness and productivity; sectoral and thematic reforms in green jobs, green industry, teleworking and urban transport; introduction of IGE courses into national curricula and strengthened capacity on forward looking policy analysis. This is turn has supported achievement of the OECD Declaration on Green Growth and several SDGs, including SDGs 4, 8, 9, 10, 11, 12, 13 and 17.

The Sustainable Development Goals
SDG 8
SDG 11

PAGE milestones

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  • PAGE activities in Peru in 2014

    • National Steering Committee established
    • PAGE work commences with the signing of a Declaration on Green Growth and the launch of a roadmap
  • PAGE activities in Peru in 2015

    • Formulation of a National Green Employment Plan initiated
    • First international seminar on teleworking held
  • PAGE activities in Peru in 2016

    • Youth employment plans for the regions of Arequipa and Piura adopted by regional ordinances
    • International Congress on teleworking and employment of the future held
    • Guidelines for Green Growth approved, laying the foundation for the adoption of green growth
  • PAGE activities in Peru in 2017

    • Development of the Green Industry Policy commenced through a series of Green Industry Forums
    • Event on telework as a mechanism to improve productivity held
  • PAGE activities in Peru in 2018

    • National Teleworking Strategy adopted with a supporting Plan
    • Framework Law on Climate Change published by the new President
    • National application of the Integrated Green Economy Modelling (IGEM) framework commences including series of trainings
    • Circular Economy Roadmap for Industry adopted
    • National Competitiveness and Productivity Policy adopted, with an objective on environmental sustainability
  • PAGE activities in Peru in 2019

    • National Plan for Competitiveness and Productivity approved, with specific milestones on environmental sustainability
    • Course on economic modelling developed to be offered by the University of the Pacific from 2020
    • National sustainability plan finalised as phase out period commences

Progress in 2019: A snapshot

Placing sustainability at the heart of decision-making

Peru’s National Competitiveness and Productivity Policy was further enhanced through the development of a National Competitiveness and Productivity Plan completed in July 2019. The policy calls for environmental sustainability and aims to create green jobs and growth through:

  • Clean technologies and green industries;
  • Circular economy and sound waste management; and
  • Bio-trade.

The Plan defines concrete measures around sustainability, as well as a monitoring framework and indicators to move from policy to action. PAGE was instrumental in installing the committee tasked with drafting the environmental sustainability chapter of this Plan, with five working groups formulating green growth measures on different thematic areas. Using the Integrated Green Economy Modelling (IGEM) framework, PAGE also supported policy analysis in the manufacturing sector, with a report completed by the University of the Pacific in May 2019.

Promoting green jobs

PAGE continued to support the Ministry of Labour and Employment Promotion (MTPE) in taking forward two products related to the National Green Employment Plan, for which a proposal was developed in 2018. The first was the development of a definition and measuring system for green jobs in collaboration with different ministries, as well as workers and private trade unions.

This was finalised in June 2019 and shared with the MTPE with the view to using the proposed methodology for analysis and calculation of green jobs, in order to collect baseline information and identify target sectors for Peru. The second was the systematization of good practices relating to green jobs, completed in September 2019 and the development of communication materials, including a photo bank and videos.

Supporting green urban transportation models

PAGE supported a study on green business models for urban transport that was discussed between representatives from the public and private sectors, civil society and trade union in June 2019. Once finalised, this study is expected to contribute to the National Mitigation Action on sustainable urban transport, including six priority areas focused on reducing greenhouse gas emissions, supporting local governments to implement a sustainable transport system and inspiring green businesses.

Shaping green industrial policy

PAGE contributed to the development of the National Green Industrial Policy, incorporating circular economy principles, as well as a Circular Economy Roadmap for Industry in 2018. In support of this Roadmap, PAGE carried out four validation and consultation workshops with the Ministries of Production and Environment in 2019 across various locations.

The aim of these workshops was to review the Roadmap with key stakeholders and support endorsement. The participants produced a report including general recommendations to support the measures foreseen within the National Competitiveness and Productivity Plan and its Chapter on Sustainability.

Integrating IGE elements into nationally run training programmes

PAGE, in collaboration with the University of the Pacific, has designed two courses relating to IGE to boost national capacity. The first is a general course on green economy offered as an elective by the Public Management School of the University from September 2019 targeting current and future public servants.

The second relates to economy modelling and aims to institutionalise knowledge of the Integrated Green Economy Modelling (IGEM) tool and the construction of green economy policy scenarios. This will be offered as an elective from September 2020.

These courses provide sustainable and independent mechanisms to take capacity-building on green economy policy analysis and tools forward in the long-term.

PAGE impact: 2015-2019 and beyond

 
Outcome 1: National Policymaking

PAGE has played a fundamental role in shaping decision-making and policies that promote IGE by supporting multi-stakeholder collaboration and knowledge development.

Laying the groundwork for a paradigm shift

Several activities have taken place to identify and integrate IGE priorities at the national level:

  • Developing guidelines for green growth: An analysis of the Peruvian economy and its green growth potential resulted in the development of Guidelines for Green Growth. Approved in 2016, these Guidelines lay the groundwork for the adoption of green growth to achieve development, promote coordination between sectors and compliance with international principles. To facilitate the implementation of these Guidelines, PAGE identified 12 policy tools for the government to employ in the short-term, including the modification of the tax structure on fuel to fund the energy transition as well as measures targeting agriculture and water.
  • Incorporating IGE into national policy: PAGE supported the development of the National Competitiveness and Productivity Policy adopted in December 2018, and subsequent Plan agreed in July 2019. They outline environmental sustainability as a priority objective, with the aim to create green growth and jobs. PAGE provided technical assistance on this priority area through five specific work groups and informed the design of four out of the seven policy measures that were incorporated into the final Plan. This, together with the Guidelines for Green Growth is aligned with SDG 8, target 8.5 by promoting decent work, SDG 12, target 12.1 by incorporating sustainable production and consumption into national policies, and SDG 17, target 17.14, by enhancing policy coherence.
  • Applying the IGE modelling tool

    PAGE helped the government to identify elements for the construction of a green growth development model. This included identifying priority areas through a stocktaking study and the ex-ante evaluation of green policies and their social, economic and environmental impact by means of a quantitative assessment. The University of the Pacific was selected as the national institution to support this work. PAGE has subsequently provided more specialist assistance to the Ministry of Production (PRODUCE) to apply the Integrated Green Economy Modelling (IGEM) framework. A series of workshops were conducted in 2018 to develop modelling capabilities. In 2019, PAGE extended its support at the sub-sector level, with a report on “quantitative analysis of green policies in the manufacturing sector”, as well as training for 25 participants from various ministries, including sessions with technical experts. This work aligns to SDG 17, target 17.14, by enhancing policy coherence and target 17.19, by building on existing initiatives to develop measurements of progress.

    Positioning IGE in the political agenda and multi-actor dialogue spaces

    PAGE has facilitated inter-ministerial dialogue through the PAGE Technical Committee and National Steering Committee (led at the level of Vice Ministers). Following a change in government, the Ministry of Environment (MINAM) took over inter-ministerial coordination in 2018, to ensure country ownership after the phase-out period. This contributes to SDG 17, target 17.16, by facilitating multi-stakeholder partnerships.

    Outcome 2: Sectoral and Thematic Reform

    PAGE has supported decent work, as well as green policies across industry, agriculture and forestry, water, transportation and solid waste.

    Green jobs

    PAGE supported the creation of green jobs on provincial and national levels. This has contributed to SDG 8, target 8.5, by promoting decent work and SDG 10, target 10.4, by supporting greater equality:

    • Provincial level: PAGE assisted the incorporation of green growth objectives into regional youth employment plans to provide young people with job opportunities. Regional youth employment plans were prepared for Arequipa, Piura, La Libertad and Cajamarca. In Piura and Arequipa, these plans were enacted through regional ordinances.
    • National level: PAGE supported the development of the National Green Jobs Plan, with the final draft discussed in October 2018. The Ministry of Labour and Employment Promotion (MTPE) has incorporated actions from this Plan into its 2019 institutional plan, with several activities funded by the public budget. In 2019, PAGE supported two products of the Green Jobs Plan: i) operational definition of green jobs, together with a future measurement system; and ii) the systematization of good practices regarding green jobs. In 2019, the MTPE prepared a proposal for a National Decent Employment Policy.
    Green industry and circular economy

    In 2017 PAGE and the Ministry of Production (PRODUCE) developed recommendations for a National Green Industrial Policy, which fed into the National Productivity and Competitiveness Plan. This work was complemented by a series of forums on green industry between 2017 and 2018. The way forward for green industry was further specified through a Circular Economy Roadmap endorsed by stakeholders in October 2019. This contributes to SDG 9, target 9.2, by promoting sustainable industrialization and SDG 12, target 12.1 by supporting sustainable production and consumption.

    Sustainable agriculture, forestry, water and waste

    Building on the guidelines for green growth, PAGE supported the initiation of a few sectoral policy measures between 2016 and 2018, including:

    • A proposal on guidelines for the certification of good practices to support the competitiveness of the forestry sector;
    • Two short-term policy proposals related to sustainable agriculture, including increasing the use of quality seeds and expansion of cooperatives;
    • Background research for the design of financial mechanisms to implement mitigation measures in the agricultural sector, in collaboration with the Ministry of Agriculture and Irrigation (MINAGRI);
    • An evaluation of initiatives to inform the development of a low-emission cattle raising strategy (linked to the National Livestock Development Plan);
    • A policy proposal to improve the 042 Budget Program related to Water Resources, and a study on the water footprint of agro-export crops; and
    • Formulation of a pilot project in Arequipa on waste management training to encourage sustainable business activities and promote green jobs.

    This supports SDG 17, targets 17.1 and 17.5 on domestic resource mobilisation and investment, SDG 12, target 12.5, by reducing waste generation and SDG 8, target 8.5 by promoting decent work.

    Sustainable urban transport

    PAGE conducted a study on green business models for urban transport that was discussed with the public and private sectors, civil society and trade unions in June 2019. This is expected to contribute to the National Mitigation Action on sustainable urban transport. More broadly, Peru established the Urban Transportation Authority for the cities of Lima and Callao in December 2018, based on recommendations of a PAGE-supported study on opportunities for green growth from 2017. This contributes to SDG 11, target 11.2, by providing access to sustainable transport.

    Teleworking

    PAGE supported the formulation of the teleworking strategy in 2015. Following the adoption of a Pact for Teleworking in 2017, a more comprehensive national policy proposal was developed with assistance from PAGE, aiming to reduce the environmental footprint of workers, while promoting the inclusion of women and people with disabilities in the labour market. Several international and national events were held throughout 2016 and 2017 to raise awareness and share best practices. These consultations supported the development of a national policy proposal on teleworking, which was subsumed into the proposal for a National Decent Employment Policy currently under development. This has contributed to SDG 8, target 8.5, by promoting decent work and SDG 10, target 10.4, by supporting greater equality.

    Outcome 3: Strengthening Capacity

    PAGE has worked with universities, government institutions and international training and research centres to increase knowledge and capability. Examples include:

    Building institutional capacity

    Considerable efforts have been made to increase general and technical IGE knowledge across the following groups:

    • Policymakers: From 2014 to 2018, eight workshops, presentations and training sessions in the T21 model were conducted, involving all target sectors. As a result, national experts have enhanced capacity to support evidence-based policymaking for the green economy transition, supporting SDG 17, target 17.19.
    • Modelers: Workshops were conducted in August, September and November 2018 to develop capability in modelling sectoral policies using the Integrated Green Economy Modelling (IGEM) framework and T21 model. Two researchers have received training on the methodology and calibration tools for VENSIM simulation software for modelling work. This supports SDG 17, targets 17.18 and 17.19, by increasing the availability of data and measurements of progress.
    • Media and general public: PAGE has accumulated a growing community of followers on its national website. In 2015 a national media competition entitled “journalists for green growth” rewarded journalists who seek to raise awareness about the benefits and importance of green growth. This work supports SDG 13, target 13.3, by improving education, awareness-raising on climate change mitigation.
    South-south collaboration

    Efforts have been made throughout Peru’s involvement in the partnership to share experiences and lessons learnt. At the first consultation workshop for PAGE Uruguay in July 2017, the national coordinator for Peru was present to share experiences and lessons learned from PAGE implementation. Lessons from Mauritius regarding the development of a communications campaign as part of the sustainability strategy have also been shared with Peru.