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Peru Sectors

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

In 2019, the share of electricity in Peru’s building sector – both residential and commercial – was over 30%, followed by biomass and oil and gas. The sector emitted 4 MtCO₂ which represented 2% of total emissions in the energy sector.

The analysed 1.5°C pathways show that the sector could be decarbonised between 2030 and 2043, with the share of electricity doubling by 2030 from 2019 values and reaching close to 90% in 2050.

Peru will need stronger policies in place to decarbonise the buildings sector. In 2021, the Ministry of Housing, Construction and Sanitation released an updated version of the technical code for sustainable construction which consists of guidelines for renovation, design and construction of sustainable buildings following SDG criteria.25 Other government programmes include the Nationally Appropriate Mitigation Actions (NAMA) for Sustainable Construction which aims to reduce water consumption in buildings by 30–40% and energy consumption by 30–50% by 2030. However, the implementation of energy efficiency and appliance labelling programmes would need to be accelerated and other stronger measures be put in place in order to reduce emissions in the sector.

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 buildings sector

petajoule per year

Scaling
Low energy demand
2019203020402050400600800
High energy demand - Low CDR reliance
2019203020402050400600800
  • Natural gas
  • Coal
  • Oil and e-fuels
  • Biofuel
  • Biogas
  • Biomass
  • Hydrogen
  • Electricity
  • Heat

Peruʼs buildings sector direct CO₂ emissions (of energy demand)

MtCO₂/yr

Unit
12345619902010203020502070
  • Historical emissions
  • High energy demand - Low CDR reliance
  • Low energy demand

1.5°C compatible buildings sector benchmarks

Direct CO₂ emissions and shares of electricity, heat and biomass in the buildings final energy demand from illustrative 1.5°C pathways for Peru

Indicator
2019
2030
2040
2050
Decarbonised buildings sector by
Direct CO₂ emissions
MtCO₂/yr
4
1 to 6
0 to 2
0 to 1
2030 to 2043
Indicator
2019
2030
2040
2050
Share of electricity
Percent
32
61 to 68
70 to 91
82 to 87
Share of heat
Percent
1
0 to 2
0 to 6
7 to 14
Share of hydrogen
Percent
0
0
0
0 to 1

Footnotes