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OECD Environmental Performance Reviews: Peru 2017 PDF

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OECD Environmental Performance Reviews PERu 2017 O E C D E n v ir o n m e n t a l P e r f o r m a n c e R e v ie w s P E R u 2 0 1 7 OECD Environmental Performance Reviews: Peru 2017 This work is published under the responsibility of the Secretary-General of the OECD and the Executive Secretary of the Economic Commission for Latin America and the Caribbean (ECLAC). The opinions expressed and arguments employed herein do not necessarily reflect the official views of the member countries of either the OECD or ECLAC. This document, as well as any data and any map included herein, are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. This English language edition is the official version of the work. A Spanish edition of this work is also published under the title: Evaluaciones del desempeño ambiental: Peru 2017. Please cite this publication as: OECD/ECLAC (2017), OECD Environmental Performance Reviews: Peru 2017, OECD Publishing, Paris. http://dx.doi.org/10.1787/9789264283138-en ISBN 978-92-64-28312-1 (print) ISBN 978-92-64-28313-8 (PDF) United Nations reference number: LC/TS.2017/88-P Series: OECD Environmental Performance Reviews ISSN 1990-0104 (print) ISSN 1990-0090 (online) The statistical data for Israel are supplied by and under the responsibility of the relevant Israeli authorities. The use of such data by the OECD is without prejudice to the status of the Golan Heights, East Jerusalem and Israeli settlements in the West Bank under the terms of international law. Photo credits: Cover © Mikadun/Shutterstock.com; © Vadim Petrakov/Shutterstock.com. Corrigenda to OECD publications may be found on line at: www.oecd.org/about/publishing/corrigenda.htm. © OECD/ECLAC 2017 You can copy, download or print OECD content for your own use, and you can include excerpts from OECD publications, databases and multimedia products in your own documents, presentations, blogs, websites and teaching materials, provided that suitable acknowledgement of OECD as source and copyright owner is given. All requests for public or commercial use and translation rights should be submitted to [email protected]. Requests for permission to photocopy portions of this material for public or commercial use shall be addressed directly to the Copyright Clearance Center (CCC) at [email protected] or the Centre français d’exploitation du droit de copie (CFC) at [email protected]. OECD ENVIRONMENTAL PERFORMANCE REVIEWS: PERU 2017 │ 3 Preface The Republic of Peru has experienced notable economic growth in recent years. Between 2005 and 2015 Peru’s gross domestic product grew by an annual average of 5.8%, owing to a combination of macroeconomic stability, openness to trade and growing inflows of foreign direct investment attracted by the country’s wealth of natural resources and high commodity prices. Despite the marked significance of this growth phase, the challenge that remains is to transform that growth into more inclusive and sustainable economic development. Peru is a multicultural and megadiverse country with abundant ecosystems and natural resources and an age-old tradition of managing its resources sustainably. However, the increasing pressure of the extractive industry, unplanned urbanisation and deforestation are threatening both this natural heritage and the wellbeing of the Peruvian people, undermining what could be the foundations of solid long-term growth. The country’s high vulnerability to environmental changes, particularly those caused by climate change and extreme weather events such as El Niño, poses additional challenges to the development model. It is therefore ever more necessary to develop an institutional environmental strategy to ensure that economic progress goes hand in hand with proper environmental protection and that costs and benefits are shared fairly. That strategy must also promote the sustainable use of the natural heritage and anticipate environmental changes in order to help boost resilience. During the period under review—from the early 2000s to the present—significant progress has been made towards this end: the legal framework and environmental institutions have been strengthened, information systems have been improved, management tools that integrate economic and environmental components have been applied and progress has been made in defining a green growth strategy. Efforts made in environmental education, promoting citizen participation and access to justice on environmental matters are contributing to a more aware and active society in support of sustainable development. Continuing to promote sustainable growth requires a State commitment to actively incorporate environmental protection into economic and sectoral policies, building synergies with environmental policy. Peru has good environmental indicators, including moderate waste generation, a small vehicle fleet and a limited contribution to climate change. This situation may make it easier to promote the changes needed to achieve sustainable development. The aim of this environmental performance review is precisely to help Peru assess its progress towards achieving its environmental goals, enrich and ensure that the necessary policy dialogue continues uninterrupted, promote better accountability and deepen the awareness of all actors involved in the economic and social development of Peru. The 66 recommendations included in this study target some of the country’s main environmental challenges: OECD ENVIRONMENTAL PERFORMANCE REVIEWS: PERU 2017 © OECD 2017 4 │ OECD ENVIRONMENTAL PERFORMANCE REVIEWS: PERU 2017 • Continue to strengthen environmental institutions and environmental management systems at all levels, and ensure the effective implementation of environmental protection policies. • Ensure that the green growth strategy is a central pillar of development that involves sectoral ministries and makes them responsible for the environmental impact of their policies. • Promote greater use of economic instruments for environmental management, particularly environmental taxes, and eliminate damaging subsidies. • Ensure better environmental management in the extractive industries, tackling informality, improving the handling of chemical and dangerous substances and combating their negative effects on biodiversity and ecosystems. • Incentivise the sustainable use of the country’s rich natural heritage and the opportunities it generates for eco-innovation and the development of new economic sectors. • Continue strengthening information systems, education, participation and justice in environmental matters with a view to raising awareness of sustainable development throughout the country. This review has been prepared by the Economic Commission for Latin America and the Caribbean (ECLAC) and the OECD, and it benefited from the constructive dialogue between Peru and the countries participating in the OECD Working Party on Environmental Performance. This joint effort helps to build awareness of the situation in different countries and facilitates continuing collaboration both among countries and with ECLAC and OECD, especially in the current framework of the 2030 Agenda for Sustainable Development and the Paris Agreement on climate change, which urge the international community to work decisively towards sustainable development and the common well-being of all people. Ángel Gurría Alicia Bárcena Executive Secretary Secretary-General Economic Commission for Latin Organisation for Economic America and the Caribbean Co-operation and Development (ECLAC) (OECD) OECD ENVIRONMENTAL PERFORMANCE REVIEWS: PERU 2017 © OECD 2017 OECD ENVIRONMENTAL PERFORMANCE REVIEWS: PERU 2017 │ 5 Foreword This is the first Environmental Performance Review of Peru. It is the result of the joint work of the OECD and United Nations Economic Commission for Latin America and the Caribbean (ECLAC). Environmental Performance Reviews aim to help member and partner countries improve their individual and collective performance in environmental management by: • helping individual governments assess progress in achieving their environmental goals; • promoting continuous policy dialogue and peer learning; and • stimulating greater accountability from governments towards each other and public opinion. Progress in achieving domestic objectives and international commitments provides the basis for assessing the country’s environmental performance. Such objectives and commitments may be broad aims, qualitative goals or quantitative targets. A distinction is made between intentions, actions and results. Assessment of environmental performance is also placed within the context of Peru’s historical environmental record, present state of the environment, physical endowment in natural resources, economic conditions and demographic trends. The team that prepared this review comprised the following experts: Angélica Romero (Ministry of Foreign Affairs, Chile), Alejandra Salas (Ministry of Environment, Chile), Lothar Winkelmann (Federal Institute for Geosciences and Natural Resources, Germany), Ainhoa Pérez and Alicia Pollo (Ministry of Agriculture, Food and Environment, Spain), and Gérard Bonnis (Environment Directorate of OECD). The following ECLAC staff members also participated in the review: Guillermo Acuña (Office of the Executive Secretary), Claudio Bonacic, Carlos de Miguel, José Javier Gómez, Mauricio Pereira and Joseluis Samaniego (Sustainable Development and Human Settlements Division), Germán González (consultant) and Adrián Rodríguez (Division of Production, Productivity and Management). Elvira Berrueta-Imaz, Carla Bertuzzi and Clara Tomasini from the OECD and Karina Martinez from ECLAC provided editorial and statistical support. The review also benefited from the co-operation of Ivana Capozza and Nathalie Girouard from the OECD Environment Directorate. The OECD and ECLAC are indebted to the government of Peru for its co-operation in providing information, for the organisation of the review mission to Lima and for facilitating contacts both inside and outside government institutions. Thanks are also due to all those who helped in the course of this review and to the representatives of countries participating in the OECD Working Party on Environmental Performance, which discussed the main findings and recommendations of this review at its meeting on 9 March 2016. OECD ENVIRONMENTAL PERFORMANCE REVIEWS: PERU 2017 © OECD 2017 6 │ OECD ENVIRONMENTAL PERFORMANCE REVIEWS: PERU 2017 Financial support was received from the Federal Ministry of the Environment, Nature Conservation and Nuclear Safety of Germany (BMUB), the Federal Ministry for Economic Co-operation and Development of Germany (BMZ), through the German Agency for International Co-operation (GIZ) in Peru, and the United Nations Development Account. OECD ENVIRONMENTAL PERFORMANCE REVIEWS: PERU 2017 © OECD 2017 OECD ENVIRONMENTAL PERFORMANCE REVIEWS: PERU 2017 │ 7 Table of contents Preface..................................................................................................................................................... 3 Foreword................................................................................................................................................. 5 Reader's guide ...................................................................................................................................... 13 Executive summary .............................................................................................................................. 15 Part I. Progress toward sustainable development ............................................................................. 19 Chapter 1. Background and key environmental trends ................................................................... 21 1. Introduction .................................................................................................................................... 22 2. Progress towards sustainable development: moving towards a low-carbon economy and energy and resource efficiency ............................................................................................................................. 30 3. Improvement in environmental living conditions .......................................................................... 35 4. Use of the natural resources base ................................................................................................... 37 Notes .................................................................................................................................................. 45 Bibliography ....................................................................................................................................... 46 Chapter 2. Policy-making environment ............................................................................................. 49 Key findings and recommendations ................................................................................................... 50 1. Environmental management governance structure ........................................................................ 55 Bibliography ....................................................................................................................................... 70 Chapter 3. Economy and the environment ........................................................................................ 71 Key findings and recommendations ................................................................................................... 72 1. Links between the economy and environmental pressures ............................................................ 76 2. Economic effects of environmental degradation and climate change ............................................ 77 3. Environmental policy in Peru, competitiveness and economic activity ......................................... 78 4. Mainstreaming green growth and sustainable development in public policies .............................. 80 5. Environmental taxes ....................................................................................................................... 82 6. Solid waste management charges ................................................................................................... 85 7. Fees for the provision of ecosystemic goods and services ............................................................. 85 8. Fiscal revenue obtained from non-renewable natural resources .................................................... 87 9. Fines ............................................................................................................................................... 88 10. Environmental expenditure and investment ................................................................................. 89 11. Eco-efficiency and eco-innovation ............................................................................................... 90 12. Investment in research and development ..................................................................................... 90 13. Trade opportunities ...................................................................................................................... 91 Note .................................................................................................................................................... 91 Bibliography ....................................................................................................................................... 92 Chapter 4. Society and environment .................................................................................................. 95 Key findings and recommendations ................................................................................................... 96 OECD ENVIRONMENTAL PERFORMANCE REVIEWS: PERU 2017 © OECD 2017 8 │ OECD ENVIRONMENTAL PERFORMANCE REVIEWS: PERU 2017 1. Current situation ............................................................................................................................. 99 2. Relevant actors ............................................................................................................................. 105 Notes ................................................................................................................................................ 110 Bibliography ..................................................................................................................................... 111 Chapter 5. International co-operation and commitments .............................................................. 113 Key findings and recommendations ................................................................................................. 114 1. Environmental policy objectives .................................................................................................. 118 2. Sustainable development and multilateral agreements ................................................................. 119 3. Trade and the environment ........................................................................................................... 125 4. Marine environment ..................................................................................................................... 127 5. Multilateral agreements on the environment related to waste, chemicals and hazardous substances .......................................................................................................................................................... 128 6. Bilateral and regional co-operation .............................................................................................. 129 7. Official development assistance ................................................................................................... 130 Notes ................................................................................................................................................ 131 Bibliography ..................................................................................................................................... 133 Part II. Environmental quality of life .............................................................................................. 137 Chapter 6. Air quality management ................................................................................................. 139 Key findings and recommendations ................................................................................................. 140 1. Trend of emissions and air quality ............................................................................................... 143 2. Policy goals .................................................................................................................................. 152 Notes ................................................................................................................................................ 157 Bibliography ..................................................................................................................................... 158 Chapter 7. Management of waste and chemicals ............................................................................ 159 Key findings and recommendations ................................................................................................. 160 1. Solid waste management .............................................................................................................. 164 2. Management of chemical substances ........................................................................................... 179 Notes ................................................................................................................................................ 189 Bibliography ..................................................................................................................................... 190 Chapter 8. Water resources .............................................................................................................. 193 Key findings and recommendations ................................................................................................. 194 1. Diagnostic assessment of water resources ................................................................................... 196 2. Management of water resources ................................................................................................... 206 Notes ................................................................................................................................................ 213 Bibliography ..................................................................................................................................... 214 Chapter 9. Biodiversity ...................................................................................................................... 215 Key findings and recommendations ................................................................................................. 216 1. Current situation and main trends ................................................................................................ 219 2. Policy objectives and biodiversity conservation .......................................................................... 225 Notes ................................................................................................................................................ 237 Bibliography ..................................................................................................................................... 238 Part III. Use of natural resources base ............................................................................................ 241 Chapter 10. Farming and forestry ................................................................................................... 243 Key findings and recommendations ................................................................................................. 244 OECD ENVIRONMENTAL PERFORMANCE REVIEWS: PERU 2017 © OECD 2017

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