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Peru Sectors

What is Peruʼs pathway to limit global warming to 1.5°C?

The industry sector contributes 13% of Peru’s GDP (2016) and has therefore an important role in the national economy. Emissions from industrial processes were 3% of Peru’s total emissions in 2016. The sector’s emissions come mainly from the construction sector, primarily the mineral industry with cement and lime production, followed by a small percentage of emissions coming from the production of chemicals and metals.26 The recently approved National Industry Policy aims to boost industrial development in the country and seeks to increase its contribution to the economy by 2030. Main measures include the promotion of technology improvements and productivity, and financial incentives.

Electricity accounted for more than 40% of industrial energy consumption in 2019. Under 1.5°C compatible pathways, the share of electricity increases to up to 53% by 2030 and over 80% in 2050. The sector could reach full decarbonisation between 2035 and 2037.

1 Climate Action Tracker. Climate Target Update Tracker: Peru. (2020).

2 Climate Action Tracker. Peru: Country Summary. (2020).

3 Ministerio de Ambiente de Peru. Estiman que reducir emisiones de gases de efecto invernadero beneficiará al país en 98 mil millones de dólares al 2050. Press Release, Ministerio de Ambiente (2020).

4 Gobierno del Peru. Contribuciones Determinadas a Nivel Nacional del Perú. Reporte de actualización periodo 2021-2030. 29 (2020).

5 Ministerio de Energía y Minas Peru. Minem: al cierre del último año se ejecutaron 49 proyectos de energías renovables en el Perú. (2021).

6 COES Perú. Actualización Plan de Transmision 2021 – 2030. (2020).

7 Andina Staff. 15% of Peru’s energy matrix in 2030 to be generated from renewable sources. Andina: Agencia Peruana de Noticias (2018).

8 International Energy Agency. Peru: Electricity generation by source. (2020).

9 BN Americas. What’s next for Peru’s failed 7-region gas concession call? BN Americas (2021).

10 Ministry of the Environment. Peru. Inventario Nacional de Gases de Efecto Invernadero del Año 2016 y Actualización de las Estimaciones de los Años 2000, 2005, 2010, 2012 y 2014. (2021).

11 Guglielmetti, F. Por decreto Perú facilita ingreso de vehículos eléctricos, híbridos y de hidrógeno verde. Portal movilidad (2022).

12 Ministerio de Transporte y Comunicaciones (MTC). Decreto Supremo que crea el Programa Nacional de Transporte Urbano Sostenible. Peru government (2019).

13 Reuters Staff. Peru says deforestation on the rise, up 80 percent from 2001. Reuters (2014).

14 International Energy Agency (IEA). Peru: Total energy supply (TES) by source. (2020).

15 Banco del Desarrollo de Perú (COFIDE). Prácticas e instrumentos financieros para promover la descarbonización de la movilidad urbana. (2019).

16 COFIDE. KfW y COFIDE firman acuerdo de préstamo por 250 millones de euros para Programa “Covid 19: Programa de Reactivación Verde”. (2020).

17 Organismo Supervisor de Inversión en Energía y Minería (OSINERGMIN)- Perú. La industria del gas natural en el Perú a diez años del Proyecto Camisea. vol. 51 (2017).

18 El Congreso de la República de Perú. LEY No 29969: Ley que dicta disposiciones a fin de promover la masificación del gas natural. El Peruano vol. 23 32 (El Congreso de la Repúblic de Perú, 2012).

19 Government of Peru. Peruvian submission to the UNFCCC under the Copenhagen accord. (2010).

20 Ministerio del Ambiente- Perú. Segundo Informe Bienal de Actualización ante la Convención Marco de las Naciones Unidas sobre el Cambio Climático. (2019).

21 Ministry of Environment of Peru. Programa Bosques del Minam proyecta conservar 10 millones de hectáreas de bosques comunales hacia el 2030. (2020).

22 Climate Action Tracker. Peru: Country Summary. (2020).”:https://climateactiontracker.org/countries/peru/

23 BN Americas. Increasing natural gas use in 7 Peruvian regions: a mature and profitable project. (2020).

24 Gaillard, C. Sustainable construction in Peru between informality, unskilled labour, self-construction and corruption. Construction 21 (2019).

25 Ministerio de Vivienda, C. y S. Decreto Supremo que Aprueba el Codigo Tecnico de Construccion Sostenible. (2021).

26 Ministry of the Environment. Peru. National Inventory Report 2016 and update 2000, 2005, 2010, 2012 y 2014. (2021).

27 Salas Oblitas, L. Autos híbridos y eléctricos: ¿cómo está el Perú respecto a los países de la región? El Comercio (2020).

28 Government of Peru. Decreto Supremo que crea el Programa Nacional de Transporte Urbano Sostenible. (Ministry of Transport and Communications, 2019).

29 To exclude LULUCF emissions, it was assumed that the percentage of share of mitigation effort in the LULUCF sector is the same as described in the first NDC and this value is subtracted from the absolute value.

30 While global cost-effective pathways assessed by the IPCC Special Report 1.5°C provide useful guidance for an upper-limit of emissions trajectories for developed countries, they underestimate the feasible space for such countries to reach net zero earlier. The current generation of models tend to depend strongly on land-use sinks outside of currently developed countries and include fossil fuel use well beyond the time at which these could be phased out, compared to what is understood from bottom-up approaches. The scientific teams which provide these global pathways constantly improve the technologies represented in their models – and novel CDR technologies are now being included in new studies focused on deep mitigation scenarios meeting the Paris Agreement. A wide assessment database of these new scenarios is not yet available; thus, we rely on available scenarios which focus particularly on BECCS as a net-negative emission technology. Accordingly, we do not yet consider land-sector emissions (LULUCF) and other CDR approaches.

Peruʼs energy mix in the industry sector

petajoule per year

Scaling
SSP1 Low CDR reliance
2019203020402050400600
SSP1 High CDR reliance
2019203020402050400600
Low energy demand
2019203020402050400600
  • Natural gas
  • Coal
  • Oil and e-fuels
  • Biofuel
  • Biogas
  • Biomass
  • Hydrogen
  • Electricity
  • Heat

Peruʼs industry sector direct CO₂ emissions (of energy demand)

MtCO₂/yr

Unit
051019902010203020502070
  • Historical emissions
  • SSP1 High CDR reliance
  • SSP1 Low CDR reliance
  • Low energy demand

Peruʼs GHG emissions from industrial processes

MtCO₂e/yr

024681019902010203020502070
  • SSP1 Low CDR reliance
  • SSP1 High CDR reliance
  • Low energy demand
  • Historical emissions

1.5°C compatible industry sector benchmarks

Direct CO₂ emissions, direct electrification rates, and combined shares of electricity, hydrogen and biomass from illustrative 1.5°C pathways for Peru

Indicator
2019
2030
2040
2050
Decarbonised industry sector by
Direct CO₂ emissions
MtCO₂/yr
11
5 to 8
0 to 1
0
2035 to 2037
Relative to reference year in %
−56 to −28%
−97 to −95%
−100 to −99%
Indicator
2019
2030
2040
2050
Share of electricity
Percent
42
52 to 53
70
75 to 82
Share of electricity, hydrogren and biomass
Percent
51
63 to 76
78 to 99
96 to 100

Footnotes