PMR PROJECT IMPLEMENTATION STATUS REPORT (ISR)

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1 PMR PROJECT IMPLEMENTATION STATUS REPORT (ISR) The PMR Prject Implementatin Status Reprt shuld be prepared by the Implementing Cuntry r Technical Partner, with the supprt f the Delivery Partner and/r the PMR Secretariat. Fr any questins related t the preparatin f the PMR Prject Implementatin Status Reprt, please cntact the PMR Secretariat at: pmrsecretariat@wrldbank.rg. 1. SUMMARY INFORMATION Implementing Partner: Cuntry/Technical Peru Reprting Perid: Frm 03/01/2017 t 09/30/2017 Reprt Date: 06/10/2017 Implementing Agency: Cntact Persn: Directrate f Climate Change and Desertificatin f the Ministry f Envirnment (MINAM) Rsa Mrales, Directr f Climate Change and Desertificatin / Lrenz Eguren, Prject Crdinatr Grant Executed By: Wrld Bank / United Natins Develpment Prgramme Grant Effectiveness and Clsing Dates: 02/ /2020 Grant Amunt (USD): USD 3,000,000 Funding Mbilized (USD): USD 200,000 f gvernment c-financing Funding Cmmitted (USD) USD 885,695 Please fill in the ttal amunt f Grant funding cmmitted twards activities under the MRP (in USD). 2. OVERVIEW During the first seven mnths f implementatin, the Partnership fr Market Readiness (PMR) prject in Peru priritized actins n each f its three cmpnents which have been achieving prgress under the Multisectr Wrking Grup established fr the preparatin and implementatin f Peru s Natinally Determined Cntributins (MWG-NDC), being this the natinal prcess t fulfil Peru s natinally determined cntributin under the Paris Agreement. This grup was created in 2016, with a tempral nature, with its main bjective being t generate technical infrmatin t guide the Template (v.3.0 March 2016) Page 1 f 15

2 implementatin f the NDCs. The MWG-NDC is frmed by thirteen Ministries and the Natinal Centre f Strategic Planning. Furthermre, the General Directrate f Climate Change and Desertificatin (GDCCD) at the Ministry f Envirnment (MINAM), acts as the Technical Secretary which assists in facilitating the prcess that allws the participatin f the varius sectrs and stakehlders invlved in the implementatin f the NDCs. Regarding the mitigatin target, the Ministries part f the MWG-NDC are currently at different stages f prgress. Certain Ministries are reviewing the mitigatin ptins that were part f the indc submitted in 2015, and are nw defining new ptins that will cntribute t achieve the current ambitin. The mst advanced ministries are in the develpment stage. This, includes the definitin f the baseline, the identificatin f the enabling cnditins, and the quantificatin f the ptential fr reducing emissins. Additinally, they will cntinue with the identificatin f c-benefits, institutinal arrangements, mapping f actrs and rles and cnduct the ecnmic evaluatin needed t implement the actins priritized. On the ther hand, the Ministries that have submitted adaptatin bjectives, will begin t elabrate and validate actins, prjects and prgrams that will cntribute t achieve the bjectives settled. Fllwed by the identificatin and quantificatin f the enabling cnditins needs t implement them. Alng the wrk f the MWG-NDC, several f the Ministries recgnized the rle f the subnatinal gvernments in the implementatin f the prgrams and prjects priritized fr which they cncluded n the need f incrprating subnatinal gvernment representatives int the prcess. The PMR prject in Peru will supprt the implementatin prcess f the NDC by establishing a slid Mitigatin Actin Management System (MAMS) under Peru s enhanced transparency framewrk fr accunting emissin reductins, whether t be used t fulfil NDC, t be creditable and transferred t ther cuntry, r t be used fr Results-Based Climate Finance prgrams ("n-regret" apprach). As this prject aims t identify and prmte high quality mitigatin actins and keep an accurate accunt f all individual tns f GHG emissin reductins that are the result f thse activities, it is aligned t the wrk f the MWG-NDC. The prject started in March 2017 and during these mnths, it has fcused in planning activities, and in elabrating TRs fr the cnstitutin f the Technical Crdinatin Unit f the prject and fr the preparatin f the first activities. The first activities priritized were the design f the Mitigatin Actin Management System (MAMS) and giving supprt t Ministries f waste, energy and industry sectrs, in the identificatin f mitigatin actins that will cntribute with the mitigatin gal f Peru s NDC and pilting the MAMS. On the fllwing paragraphs we will summarize the prgress up t the date: Prgress regarding settle dwn f technical staff: The Technical Crdinatin Unit (TCU n wards) was installed by hiring a natinal crdinatr, a mnitring specialist, an administrative assistant, and three technical specialists. Regarding the technical specialists, ne is in charge f supervising the develping f the MAMS, the ther, t supprt the cmpetent ministries t pilt the MAMS with the selected mitigatin initiatives, and the third ne, t assist bth Template (v.3.0 March 2016) Page 2 f 15

3 specialists. The Technical Crdinatin Unit is under the supervisin f the Natinal Directr, wh is the Directr f the General Directin f Climate Change and Desertificatin (GDCCD) f The Ministry f Envirnment (MINAM), entity respnsible fr managing the prject in crdinatin with the Ministry f Ecnmy and Finance.. Prgress regarding Result 1, implementatin f Mitigatin Actin Management System (MAMS): This cmpnent is fcused n the design and implementatin f the MAMS fr Peru, that includes the Natinal Mitigatin Actin Registry (Registry). The design f the Registry will include a pilt phase, and the definitin f the legal and institutinal arrangements and needs t ensure its peratin. During 2017, activities f this cmpnent include the elabratin f a first draft fr the apprval prcedure fr mitigatin initiatives and its Registry. This includes the selectin prcess fr cntracting the cmpany that will prvide the registry and a cnceptualizatin f the natinal MRV system fr mitigatin actins. Prgress regarding Result 2, pilting the Mitigatin Actin Management System (MAMS): It is a planned t pilt the MAMS with three mitigatin initiatives. The idea is t thrughly develp three selected mitigatin initiatives in rder t register them in the Natinal Mitigatin Actin Registry. This implies update the BAU and emissin reductin estimatin, develping an MRV fr each initiative, align the MRV with natinal MRV, and identify enabling cnditins fr its implementatin The initiatives are the slid waste NAMA, Cement NAMA and a phtvltaic panel prject fr rural electrificatin. During 2017, the prject hired technical experts t wrk with each Ministry in rder t perfrm these tasks and supprt the MWG-NDC wrk in this initiatives. Prgress regarding Result 3, increased awareness, understanding, and interest n stakehlder regarding the MAMS: This cmpnent includes all the necessary cmmunicatinal elements t achieve the prject s results. Its activities are riented t highlight the imprtance f the MAMS fr Peru s NDC prcess and implementatin. During the 2017, the prject team is develping a Cmmunicatin Strategy alng with the cmmunicatin team f the GDCCD, cnsidering the prject s gals and the stablished apprach fr each prject activity. Wrking with the GDCCD is f great value as it is the Secretariat f the MWP NDC and this implies the cmmunicatinal aspects f the PMR prject will be aligned with the NDC cmmunicatinal actins. As part f this prcess, a technical discussin n carbn market and the implementatin f the Article 6 f the Paris Agreement was held in last September. The Ministry f Freign Affairs, the Ministry f Envirnment and the Ministry f Finance f Peru participated in the discussin, and als an fficer f the Ministry f Energy f Chile and representative f Climate Fcus prvided internatinal insights. 3. IMPLEMENTATION REPORT BY COMPONENT Differences between the Objectives/Activities in the Market Readiness Prpsal and the Grant Agreement Template (v.3.0 March 2016) Page 3 f 15

4 Are there any imprtant and material differences between the bjectives/activities prpsed in the Market Readiness Prpsal and endrsed by the Partnership Assembly f the PMR and thse agreed t in the Grant Agreement with the Delivery Partner and described in the Prject s Results Framewrk? N Implementatin Prgress by Cmpnent A. Cmpnent 1: Design and Implementatin f Mitigatin Actin Management System (MAMS) Status: Under implementatin 1. First draft prpsal fr the Design f a Natinal Mitigatin Actin Assessment prcedure Draft f the ptential prcedure fr the apprval f the emissins reductins initiatives t be registered. This prcedure will guarantee that the initiative fulfills minimum quality requirements t be registered. Based in previus studies financed by the LECB and SBUR prjects fr the Ministry f Envirnment 1, the Technical Crdinatin Unit f the PMR prject in Peru in crdinatin with the GDCCD, is develping a draft f the ptential prcedure fr the apprval f the emissins reductins initiatives t be registered. The prcedure will include templates, guidelines, requirements fr verifiers etc. Als, sme lcal cnsultants have been hired t prvide inputs t the prject regarding: Advances in internatinal negtiatins in the framewrk f the UNFCCC regarding Article 6 f the Paris Agreement and its implicatins in carbn markets and NDC. Treatment f REED + initiatives in the MAMS and sme insights in hw t merge the natinal registry n REED+ activities t the MAMS. Tasting templates fr applying t the MAMS with sme emissin reductin activities. It is planed that by the end f 2017 the prpsal will be ready. 1 One was made by the internatinal cnsulting firm Perspectives and the ther by a lcal cnsultant. Template (v.3.0 March 2016) Page 4 f 15

5 2. First prpsal fr the designing f the Registry fr Emissin reductin initiatives As part f the prcess t design the Registry f the MAMS, the Technical Crdinatin Unit is starting the prcess fr cntracting the registry supplier. On this regard, it is under cnsideratin develp a registry as Sftware as a Service (SaaS) in which the sftware vendr based n a subscriptin/fee hsts and maintains the servers, databases and cde that cnstitutes the registry applicatin. This tk int accunt infrmatin gathered frm the wrkshps and guidance dcuments prvided by the PMR related t registries develpment 2, and the Peruvian experience including the develpment f the registry fr REDD+. Currently the market study fr the selectin f the cnsultant/registry cmpany has been finished. It is expected t have a first prpsal fr the designing f the Registry fr Emissin reductin initiatives, by the end f the year,. 3. First prpsal fr cnceptualizatin f the natinal MRV framewrk fr mitigatin actins This prpsal is under preparatin alng with GDCCD f MINAM and aims t set the Peruvian framewrk fr MRV in mitigatin. The natinal framewrk fr MRV is still at a planning stage in the cuntry and it is guided by the natinal bjectives presented in the Natinal Climate Change Strategy and mitigatin gal f Peru s Natinally Determined Cntributin. The measurement f the prgress in the NDC fr the mitigatin gal, will use the the Prvisins fr the preparatin f Natinal Inventries f Greenhuse Gases, called Infcarbn 3, and will be cmplemented by the Mitigatin Actin Management System (MAMS) spnsred by the PMR. In this way, the Infcarbn will allw t measure prgress in NDCs cmpliance, while the MAMS allw t manage GHG reductin r carbn remval initiatives and t measure their cntributin t NDC cmpliance. The MAMS registry gives us the aggregate data f all the emissin reductin initiatives and the individual cntributin f each f them frm the ttal. It will als allw Peru t register emissins reductins fr Results-Based Climate Finance prgrams and fr making the 2 As the technical wrkshp held in Sacrament in year 2015, abut Building Registries t Supprt the Next Generatin f Carbn Markets and the guidance dcument Emissin Trading Registries: Guidance n Regulatin, Develpment, and Administratin published in year See 3 See Infcarbn web page: Template (v.3.0 March 2016) Page 5 f 15

6 crrespnding adjustments in the emissins accunting f the cuntry fr thse emissin reductins transferred t ther cuntries. The initial dialgue with the Federal Department f the Envirnment, Transprt, Energy and Cmmunicatin (DETEC) f Switzerland and its implementing agency fr pilting ITMOs, Climate Cent Fundatin, t evaluate the pssibility t pilting ITMOS in Peru, is helping t cnceptualize and design ur natinal MRV system. B. Cmpnent 2: Pilting the Mitigatin Actin Management System (MAMS) Status: Under implementatin 4. Engagement f the institutins in charge f crdinating the implementatin f the selected emissin reductins initiatives t pilt the MAMS. As per request f the institutins in charge f crdinating the implementatin f the three emissin reductin initiatives mentined befre, technical supprt have been prvided in rder t supprt the develpment f these initiatives nt nly fr pilting the MAMS but als fr supprting the rad map elabratin fr the implementatin f these activities in the cntext f the MWG NDC. NAMA fr the cement industry, an agreement between ministries f envirnment and industry have been set in rder t frmalize mutual cllabratin twards the executin f PMR prject supprt fr this initiative. This agreement includes the hiring f three technical cnsultants. One will be in charge f develping the MRV system and supprt the implementatin f the GHG inventry f the sectr, the ther will crdinate the implementatin f the NAMA, and the third ne is a technical expert in emissin reductin actins fr the cement industry. These team als will help t the develpment f sme enabling cnditins as regulatin fr cprcessing and extended prducer respnsibility, as well as capacity building and engagement activities t stakehlders t prmte cprcessing and the demand fr blended cement. Phtvltaic panel prject fr rural electrificatin, a technical assistant has been hired t supprt the Ministry f Energy fr the inclusin f this prject int the MAMS and fr supprting the Ministry s wrk within the MWG- GTM. Pilting the MAMS in this sectr will nt nly include the phtvltaic initiative but Template (v.3.0 March 2016) Page 6 f 15

7 als any ther matured emissins reductin actin carried by the Ministry. On this regard, in the framewrk f the MWG -GTM, the Technical Crdinatin Unit f the PMR prject is prviding advice t several initiatives f this sectr in rder t be included in the MAMS, particularly, the nes frm the NAMA in Energy led by the Ministry and supprted by GEF. This NAMA, is designing 4 sub NAMAS: renewable energy cnnected t the natinal grid, energy prvisin in rural areas nt cnnected t the grid, energy efficiency measures and the implementatin f electric buses fr urban public transprtatin. The TCU has already had several meetings and has prvided templates t dcument the initiatives fr their inclusin in the MAMS. NAMA fr slid waste management. The General Directrate f Slid Waste Management at the Ministry f Envirnment (GDSWM) is respnsible fr crdinating, prmting advising and agreeing with the sectral authrities, reginal gvernments and lcal gvernments n the implementatin f regulatins n slid waste management. It is designing the NAMA fr the slid waste management with the supprt f NEFCO. A technical assistant has been hired t supprt GDSWM fr the inclusin f this prject t the MAMS and fr supprting the MWG- GTM wrk. The TCU is als wrking clse tgether with the GDSWM supprting the design f the NAMA and its inclusin in the MAMS. The supprt includes advice in the evaluatin f participating in carbn markets. On this regard, as it was mentined befre, the Switzerland gvernment is interested in pilting ITMOS f Article 6 f the Paris Agreement n slid waste management prjects and the TCU is invlved in the discussin by advising GDSWM. 5. Sme advances in MRV and enabling activities Assistance fr the Develpment f the MRV plan fr the NAMA f slid waste management We are crdinating with the GDSWM fr the actins that are being carried ut t strengthen SIGERSOL. SIGERSOL will be the repsitry f infrmatin n municipal waste management, including the peratin f landfills. In additin, in cnjunctin with MINAM and the wrk f the GTM, technical assistance is prvided t all members sectrs t align MRV plans with the Natinal MRV System. Template (v.3.0 March 2016) Page 7 f 15

8 Assistance fr the Develpment f the MRV plan fr the NAMAs related t renewable energy cnnected t the grid and side demand energy efficiency initiatives. The TCU has supprted the Ministry f Energy t prepare the TORs fr the develpment f the Natinal Grid Emissin Factr and its MRV system. This emissins factr is very imprtant because it will be used t calculate emissins reductins fr side demand energy efficiency initiatives as well as fr renewable energy initiatives cnnected t the grid. The TCU has deep experience in the calculatin f this emissin factr and MRV fr renewable energy. Supprt Enabling activities fr the NAMA f slid waste management. TCU has been wrking alng with GDSWM t identify and priritize enabling cnditins under the NAMA. C. Cmpnent 3: Increasing awareness, understanding, and interest n stakehlder regarding the MAMS Status: Under implementatin Cmments: 6. Cmmunicatins Strategy f the prject It was decided that the Prject's Cmmunicatin Strategy will be carried ut jintly with the GDCCD t ensure its alignment with Peru's Natinally Determined Cntributin Cmmunicatins Strategy. Thus, a meeting f the PMR TCU, facilitated by the cmmunicatins team fr the GDCCD, and with the participatin f UNDP was held. This meeting was able t define the necessary inputs fr the Cmmunicatins Strategy f the PMR Prject that expects t have a first versin in Octber f this year. 7. Activities fr utreaching and engagement In relatin t the utreaching and engagement activities f the prject, the fllwing events fr the year 2017 have been identified s far: Infrmed discussin n cperative appraches Article 6 f the Paris Agreement: Wrkshp rganized by the Prject and the DGCCD, with the participatin f the MEF Template (v.3.0 March 2016) Page 8 f 15

9 and CEPLAN t assess the rle f carbn markets fr the develpment f the cuntry in the cntext that Peru has t cmply with its NDC. The Prject participated in the cnceptualizatin f the event and cntributed in the the lgistics. During this year, the Ministry f Envirnment is rganizing thematic dialgues ( Dialguems ) n climate change within the framewrk f InterClima, which is a fuller apprach t engage civil sciety and nngvernmental stakehlders. One f these Dialgues, will be spnsred by the PMR Prject and aims t generate a space fr private sectr t participate in the implementatin f the NDC. This event includes the ecnmic sectrs linked t the mitigatin ptins priritized by the prject. If necessary, please add cmpnents in the table abve. 4. PROGRESS, CHALLENGES, AND LESSONS LEARNED Imprtant plicy r regulatry develpments related t the Grant s bjectives and activities: Develpments: Natinally Determined Cntributins and the Multisectral Wrking Grup In July 2016, Peru ratified the Paris Agreement, giving a key message f Peru's cmmitment t initiate actins fr the implementatin f its Natinally Determined Cntributins (NDC). Being a vulnerable cuntry t ptential negative impacts f climate change, adaptatin is the principal cmpnent. Nnetheless, Peru jins the glbal effrt t reduce greenhuse gas (GHG) and presented a cmmitment f emissins reductins equivalent t 30% in relatin t the Greenhuse Gas (GHG) emissins f the prjected Business as Usual scenari (BaU) in 2030, starting in The prjectin cnsiders the ttal emissins and remvals f the LULUCF sectr. The Peruvian State cnsiders that a 20% reductin will be implemented thrugh dmestic investment and expenses, frm public and private resurces (nn-cnditinal prpsal), and the remaining 10% is subject t the availability f internatinal financing and the existence f favurable cnditins (cnditinal prpsal). The adaptatin gal includes five sectrs during the same established perid: water resurces, agriculture, fisheries, frestry and health. Accrding t this institutinal backgrund, the Peruvian NDC is aligned with the bjective f the Natinal Climate Change Strategy until Template (v.3.0 March 2016) Page 9 f 15

10 As fr mitigatin, the Peruvian gvernment has included energy, transprt, agriculture, industrial prcesses, waste and LULUCF emissins in its NDC, which are als the categries currently reprted in GHG Inventries. Mitigatin actins will be implemented in all thse sectrs, but thse sectrs that reprted the largest share f emissins have been priritized t determine financial resurces frm public budget and internatinal cperatin, needed fr implementatin f actins and achieving the NDC gal. In rder t begin the NDC s implementatin phase, in February 2017, the Multisectral Wrking Grup (MWG-NDC) 4, started t wrk in generating technical infrmatin that wuld rientate and cntribute t the NDC s implementatin. This infrmatin includes, the base line scenaris fr each sectr, the evaluatin and / r quantificatin f csts, envirnmental and scial cbenefits and ther ecnmic effects assciated t the NDC. The MWG-NDC is als in charge f develping a tentative radmap t prmte the necessary enabling cnditins fr the NDC implementatin. The preparatin f the radmap will require the GTM-NDC different levels and times: A first mment f technical-plitical apprpriatin and validatin, with exclusive participatin f the sectrs (central gvernment) A secnd mment f territrial validatin, invlving reginal gvernments that are very clse t the implementatin A third stage f scaling up and synergies, invlving the participatin f nn-state actrs (including the private sectr) Natinal Strategy fr climate change The Natinal Strategy fr Climate Change (NSCC) was apprved in 2015, as a guiding instrument that articulates the management f climate change in the cuntry. It cnstitutes the nrmative framewrk fr the fulfilment f the gals established in ur Natinally Determined Cntributin submitted t the UNFCCC. The NSCC establishes the means f implementatin and their respective lines f actin in rder t guide r give guidelines t the natinal gvernment (ministries and public agencies) and subnatinal gvernments (reginal and lcal gvernments) fr the frmulatin and prgramming f their interventins, frm their respective functins and cmpetencies, that allw the adaptatin f sciety t the effects f climate change and the mitigatin f GHG emissins. T that end, the dcument establishes tw bjectives f public plicy: (i) "the ppulatin, ecnmic agents and the State increase awareness and adaptive capacity in the face f adverse effects and pprtunities f the CC," and (ii) ecnmic agents and the State cnserve carbn stcks and cntribute t the reductin f greenhuse gas (GHG) emissins, "and their respective indicatrs in rder t measure their evlutin. The NSCC has a structure that is cnsistent with the administrative systems f the State, in particular with the mdernizatin administrative system and the ne fr strategic planning, 4 Created in year 2016 as explained in the Overview sectin f this reprt Template (v.3.0 March 2016) Page 10 f 15

11 since the interventins frmulated and prgrammed by public entities f the natinal and subnatinal gvernment must use said systems t plan, priritize and execute their institutinal bjectives. Infcarbn Althugh Peru has made significant prgress in enhancing natinal arrangements fr preparing GHG inventries, ntably thrugh the creatin and peratinalizatin f its Infcarbn, there is n system in place t manage and integrate infrmatin related t climate actin. The Infcarbn was created thrugh a Supreme Decree (DS MINAM) and it established respnsibilities fr public entities t reprt emissins frm the activities f their sectrs. Accrding t this legal basis, the Ministry f Envirnment is in charge t manage the Infcarbn and has t give supprt and build capacities in the ther public entities fr annually reprting n their sectral GHG emissins. Mrever, the Ministry f Envirnment has the respnsibility t cllect the infrmatin prvided by ther sectrs and t aggregate it fr the elabratin f the Natinal GHG Inventry. The Infcarbn includes cmprehensive Excel spreadsheets fr GHG calculatins, and sectrial guidelines fr preparing the natinal GHG inventries. Scial Price f carbn dixide in the public investment The definitin f a scial price fr carbn dixide, called Scial Price in the cntext f scial assessment, allws incrprating the increase and / r reduce f GHG emissins in the assessment f the net scial cst r benefit in a public prject. This scial price culd be used fr any typlgy f prjects where there is a measure f their GHG emissins, such as slid waste prjects, mass transit, rads, rural electrificatin, wastewater, amng thers and that can be expressed in carbn equivalents. The calculatin btained fr the Scial Carbn Price fr evaluatin purpses f prjects in Peru is US $ 7.17 per tnne f CO2. Climate Change Legislatin The Ministry f Envirnment submitted a prpsal f climate change legislatin t the Peruvian Cngress. The prpsal seeks t establish the regulatry framewrk t reduce the impacts f climate variability affecting the ppulatin, being mre prepared t fld, md flds, drught, frst and extreme weather cnditins that affect the quality f life f all Peruvians, prmting efficiency and quality f the investment in infrastructure and prductive systems resilient t the climate. Nt establishing clear rules fr public entities at all three levels f gvernment, the private sectr and civil sciety n the internatinal cmmitments under the United Natins, will create a vid in the natinal legal framewrk t respnd effectively t the internatinal cmmunity. New Regulatin n Organizatin and Functins (ROF) in MINAM By the Supreme Decree N MINAM, the Ministry f the Envirnment (MINAM) apprved its new Regulatin n Organizatin and Functins (ROF) that establishes a mdern rganizatinal structure f wrk, in line with envirnmental challenges. In rder t achieve the natinal bjectives f climate change and the internatinal cmmitments, it was decided t create tw sub directins under the General Directin f Climate Change and Desertificatin. The Directin f GHG Mitigatin aims t prmte the Template (v.3.0 March 2016) Page 11 f 15

12 implementatin f plicies and actins that wuld achieve emissins reductins and als put in place the necessary instruments fr the MRV. The Directin fr Adaptatin t Climate Change and Desertificatin, is in charge f prmting adaptatin t climate change, in terms f alleviating the symptms f climate change and thus preparing urselves fr the effects f extreme weather events. Challenges: Mre than challenges, these develpments prvide pprtunities fr the PMR prject as helped t intrduce seriusly int the gvernmental agenda the tpic f climate change. The NDC and the MWG-NDC prcess bst the prject as sectrs requires assistant t achieve its cmmitments related t NDC. The new legislatin n climate change will help the prject t frmalize the instruments develped by it as thse wh help in the implementatin f the natinal MRV framewrk. Finally, the new ROF will help t strength the management f the prject. Lessns learned: It is necessary t intrduce in the gvernmental plicy and regulatin the issue f climate change in rder t get the interests f the public sectr and be incrprated int the planning and budgeting. The develpment in the prvisin fr the elabratin f natinal greenhuse gases inventries, Infcarbn, issued by law, demnstrated that sectrs can be invlved if regulatin is set. Imprtant changes in the technical design r apprach related t the Grant s activities: Until nw there are n majr changes in the technical design r apprach related t the Grant s activities Key capacity issues (implementatin, technical, financial management, prcurement) related t the Grant s activities: Develpments: MINAM as the management entity, has made in these first mnths the institutinal and financial arrangements fr the implementatin f the prject. In the figure bellw, it is shwed the institutinal arrangements already set. Template (v.3.0 March 2016) Page 12 f 15

13 Steering Cmmitee MEF - MINAM Natinal Directr (GDCCD - MINAM) ROSA MORALES Administratin Unit UNDP Technical CrdinatinUnit (TCU) Natinal Crdinatr Lrenz Eguren Mnitring Specialist Rdrig Alvites Administrative Assistant Kelvin Orbegs Technical Specialist Result 1 Freddy Garr Technical Specialist Result 2 Manuel García-Rsell Technical Assistant Results 1 and 2 Daniella Diez-Cansec Financed by PMR budget Technical Assistants fr the sectrs supprted by the Prject. Technical specialist n gender Especific Cnsultancies Cnsultants fr the cmmunicatin strategy f the prject. The Natinal Directr f the prject is the General Directr f the General Directrate f Climate Change and Desertificatin f the Ministry f Envirnment (GDCCD) f MINAM. She supervises the Technical Crdinatin Unit(TCU) t ensure cmpliance with the agreements taken by the steering cmmittee and prject bjectives and its alignment t Peruvian climate change plicies. The Technical Crdinatin Unit is lcated in the GDCCD as MINAM. The Natinal crdinatr and Technical Specialists f the TCU have an extended experience in mitigatin and carbn markets, including experience in verificatin and validatin f prjects, as sme had wrked in Designated Operatin Entities and thers in the registratin f several CDM prjects. This team will be assisted by technical assistants lcated in the sectrs that belng the mitigatin initiatives that will pilt the MAMS. Als, a technical specialist n gender has been hired in rder t include adequately this tpic in the MAMS and in the prcess f the GTM- NDC. In additin, specific Template (v.3.0 March 2016) Page 13 f 15

14 cnsultancies will be cntracted when necessary as well as specific services fr cmmunicatins actins. The financed management is in place and rest in the framewrk fr cllabratin actins f UNDP in Peru with the gvernment. This framewrk prvides Guidelines and Prcedures fr Natinal Implementatin by the Gvernment f UNDP Supprted Prjects, which MINAM is already acquainted with as it has been implementing several prjects under this mdality. Challenges: Get lcal cnsultants experts in MRV in the framewrk f the enhanced transparency framewrk f the Paris agreement and in the cntext f uncertainty regarding the cnfiguratin f future carbn markets, is nt easy. There are sme cnsultants with an imprtant experience in the CDM and vluntary carbn markets but are few. Als, the situatin has been changed as currently Peru has emissins limitatin cmmitments, which was nt the case f the era f the Kyt Prtcl. Hwever, by taken advantage f the lcal experience gained in the CDM and climate change negtiatins, f the capacity building resurces prvided by the PMR, f the exchange f views amng suth- suth partners and ther capacity building initiatives, the prject is taken the apprach f learning by ding, were transparency is fundamental t imprve. Crdinatin with ther carbn pricing initiatives, including thse funded by ther dnrs: The PMR Peru Prject, anchred at MINAM, crdinates clsely with ther relevant climate mitigatin prgrams and initiatives (as utlined abve), including in particular prjects supprting the develpment f Peru s natinal MRV system and the develpment f priritized mitigatin actins (with GHG crediting ptential). It is wrth nting that the implementatin f the prject has cntributed t imprve the crdinatin amngst Ministries, specifically, with the Ministry f Finance, which has start explring carbn pricing tls. Stakehlder engagement related t the Grant s activities: Develpments: The main develpments n this regard has been described in the cmpnent 2 f the prject abve. Challenges: The crdinatin fr the engagement f entities in charge f the implementatin f the three mitigatin initiatives selected t pilt the MAMS has been quite challenging. The crdinatin with the General Directrate f Slid Waste Management (GDSWM) has been relatively fluid as it is part f the Ministry f Envirnment and has the financed supprt frm NEFCO fr the designing f the NAMA f Slid Waste Management. Nevertheless, it was necessary t hire a liaisn t assist in the activities related t the PMR as current GDSWM staff is verwhelmed with its rdinary activities. The Ministry f Industry (PRODUCE), required a frmal agreement with the Ministry f Envirnment fr pilting the NAMA f the Cement Industry in the MAMS, and its subscriptin has been taken several mnths. Happily, the agreement is clse t be signed. Finally, the crdinatin with the Ministry f Energy has been slw althugh it has GEF supprt fr the develpment f the NAMA fr the energy Template (v.3.0 March 2016) Page 14 f 15

15 sectr. The rigin f this delay is that the different areas f this Ministry still d nt cllabrate smthly with the NAMA. As it was mentined, aall f them requested technical assistant. Lessns learned: Permanent technical assistants wrking as liaisns between the prject and key entities has been useful fr the implementatin f the PMR activities. Als, it has been an advantage the nging prcess f the MWG fr NDC implementatin t get ministries engagement as there are synergies with the PMR prject. Als, it has been imprtant t take advantage f ging mitigatin prjects be in place the key entities, as it is the NAMAs fr the energy and slid waste sectrs Template (v.3.0 March 2016) Page 15 f 15

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