Case Study Details - Playbook of Solutions - Voluntary Carbon Reporting

Challenges to investment

In 2015, Peru initially set a target to reduce its GHG emissions by 30% by 2030 versus the business-as-usual (BAU) scenario, capping annual emissions at 300 million tons of carbon dioxide equivalent (tCO2eq). Five years later, Peru increased its GHG emission reduction target to 40%, conditional to international support and cooperation. These targets were set in the context of Nationally Determined Contributions (NDCs) under the Paris Agreement. As part of these commitments, Peru identified carbon capture and storage (CCS) as a necessary building block to achieve its carbon neutrality target. However, without a legal and regulatory framework for CCS, Peru struggled to attract investment in CCS, which in turn stifled overall investment in clean energy infrastructure and development of a carbon emissions trading market.

Approach

On 21 November 2019, the Peruvian Ministry of Environment (MINAM), through the General Directorate of Climate Change and Desertification (DGCCD), presented the digital platform “Peru Carbon Footprint” (Huella de Carbono Perú; HC-Peru). The platform aimed to promote and recognize the efforts of public and private organizations in managing their GHG emissions and contributing to the 2030 NDC goal. The Regulation of the Climate Change Mitigation Law No 30754 established a national platform to measure, report, and verify emissions and mitigation measures. Organizations could register voluntarily for the platform, which featured four levels of recognition for an organization’s GHG management. Organizations earned one star by simply measuring their emissions (Level 1), two stars if an accredited third party verified their measuring results (Level 2), three stars if they reported emission reductions (Level 3), and four stars if they offset or neutralized their emissions (Level 4). Each level of recognition could be awarded annually. The benefits included the issuance of seals and diplomas, the publication of the organization’s name on the HC-Peru website, and an annual public event to present each organization’s achieved level.

Key Enabling Conditions

The work of the HC-Peru platform was supported by several concurrent programmes and initiatives. The UNDP promoted the creation and strengthening of National Voluntary Carbon Footprint Programmes (NVCFPs), such as in Peru, with the support of the National Determined Contributions Support Programme (NDCSP) and the Climate Promise Initiative, by helping to formulate and implement their climate targets as well as enhancing their NDCs. Awareness campaigns, awards, and symbolic figures such as the Nono Bear spurred private sector engagement by recognizing the organization's efforts with stars and strengthening its public reputation as a contributor to emissions reductions and the national GHG reduction target. Finally, the Peruvian government focused on establishing synergies between HC-Peru and other programmes and initiatives, an effort which continues today.

Impact / Outcomes

From 2019 to 2023, a total of 1,445 organizations nationwide registered on the HC-Peru platform. Out of these, 951 organizations measured their GHG emissions (Level 1), collectively measuring over 225 million tCO2eq. The verified total GHG emissions of 370 organizations (Level 2) amounted to around 91 million tCO2eq. Participants at Level 3, totaling 94, annually reduced their GHG emissions by around 3 million tCO2eq. Finally, 30 organizations at the highest level managed to neutralize GHG emissions equivalent to 10,000 tCO2eq over the same period.

Additional Sources