Building a strategic framework for reducing climate change risk and vulnerability: Unlocking climate finance to ensure long-term adaptation in Peru
Peru is currently developing key elements for ensuring long-term adaptation to climate change. The Peruvian Framework Law on Climate Change will secure the mainstreaming of adaptation measures into sectoral and subnational planning and budgeting, and strengthen the incorporation of climate change considerations into public institutions in the years to come. The ruling of this law together with past efforts will ensure that an array of innovative mechanisms put in place to optimise public expenditure on issues such as reconstruction, ecosystem services, natural infrastructure and disaster risk management take into account the climate change-related risks to become effective means for adaptation.
These efforts are complemented by a bottom-up effort closely linked to the work on adaptation under the Peruvian Nationally Determined Contribution (NDC) to improve access to international funding for adaptation through the Global Environmental Facility (GEF), the Green Climate Fund (GCF) and the Adaptation Fund (AF) as well as other bilateral and multilateral sources. In addition, they target the development of methodological tools for conducting economic valuation of adaptation measures, including avoided co-benefits and costs.
This case study constitutes a good practice because of its innovative approach to developing new mechanisms and adjusting existing ones to mainstream adaptation. It also promotes long-term transformational change and is aligned with national and international frameworks.
The improvement of Peru´s adaptation capacity to climate change started almost twenty years ago with the construction of the first climate change scenarios, and risk and vulnerability assessment studies, and has recently been consolidated under the framework law. The main impacts of the most recent efforts to ensure long-term finance for adaptation in Peru have been:
- Mainstreaming adaptation into planning and budgeting at sectoral, sub-national and local levels;
- Public investment takes into account disaster risk reduction and adaptation to climate change;
- International finance accessed for investment in adaptation in the order of over 20 million USD;
- Avoided costs and benefits have been quantified for fourteen adaptation measures. There are future benefits to ecosystems and populations derived from adaptation, and these economic assessments reveal the existence of these benefits;
- Through the work of the GTM, ministries and key governmental institutions have engaged and strengthened ownership of the NDC commitments and, through this, found a new way of reaching citizens. As an example, the Ministry of Production has created its own Direction of Climate Change;
- There has been a decentralisation of the climate change agenda;
- Institutional capacity regarding adaptation has been strengthened;
- Adaptation has been put high on the public agenda and awareness has increased around the issue.
• Ministry of Environment (MINAM)
• Ministry of Agriculture and Irrigation (MINAGRI)
• Ministry of Production (PRODUCE)
• Ministry of Health (MINSA)
• Ministry of Energy and Mines (MINEM)
• Ministry of Housing, Construction and Sanitation (MVCS)
• Ministry of the Economy and Finance
• Ministry of Culture
• Ministry of Woman and Vulnerable Populations
• National Strategic Planning Center