On January 25, 2022, the Peruvian Ministry of the Environment published Supreme Decree No. 003-2022-MINAM, which declares the climate situation a matter of national interest. The environmental situation is recognized as an “emergency,” and there is the need to “urgently execute measures to implement climate actions in accordance with the National Determined Contributions by the year 2030. It also recognizes the impact of these actions on economic reactivation and sustainability to economic recovery, thus contributing to the fight against poverty and the development of a circular economy. The supreme decree recognizes circular economy as a key lever in the fight against climate change. This line establishes priority activities related to the pillar of circular inputs, like increasing the share of non-conventional renewable energies by 20%, increasing and promoting the mass use of e-mobility, as well as the production and use of green hydrogen.
The priority lines defined in the supreme decree are:
1. Prioritization of climate action: it declares that the priority execution of actions taken from the Peruvian NDC for 2030 is of national interest.
2. Climate governance establishes that municipal and regional governments shall develop climate change strategies that promote private sector participation in the National Commission on Climate Change.
3. Education: it establishes that the Ministry of Education shall promote content related to climate change in the school curriculum.
4. Climate funding: it states that the Ministry of Economy and Finance: shall promote the incorporation of the expected impacts of climate change within the evaluation processes for financial system investments; it shall drive measures to allow for access to funding for the implementation of mitigation and adaptation measures; and shall evaluate including the price of carbon within the framework of economic policy.
5. Priority actions: among the top measures to be implemented within the next 180 days are:
a. Ratification of the Supreme Decree on the National Climate Change Strategy for 2050.
b. Definition of mitigation and adaptation measures to achieve a 40% reduction in emissions.
c. Price of Carbon: it is established that the MEF and Ministry of the Environment (MINAM) shall define the cost of carbon and its progressive application.
d. Goal of 20% share for non-conventional renewable energies: it is established that the Ministry of Energy (MINEM), within its scope of action, shall promote the increase in the share of non-conventional renewable energies in the matrix, up to 20% by 2030, under conditions of competition.
e. MINEM must implement measures to promote programs for the use of clean energy sources in homes (e.g., induction stoves).
f. MINEM must develop programs for the production and use of Green Hydrogen.
g. MINEM, along with MINAM, in the Commission to Reform the Electric Sector, must propose regulatory changes to promote non-conventional renewable energies under conditions of competition. This will help tie up any pending matters on the abovementioned regulatory agendas.
h. E-mobility: the Ministry of Transport and Communications must issue the necessary regulations to allow for the increased use of electric, hybrid, and hydrogen vehicles, as well as measures to promote e-mobility in urban transport. This regulation will provide a greater drive towards the inclusion of electric buses and pending standards for e-mobility.