Context
Peru is highly vulnerable to the effects of climate change. The Peruvian Ministry of Economy and Finance estimates the potential economic damage by 2025 at approximately ten billion US dollars. The damage caused by climate change could be reduced or prevented if criteria for adapting to climate change and for disaster risk management are incorporated into the process of formulating and approving public investments.
Objective
At the national level and in the two project regions of Cusco and Piura, the relevant actors are aware of the possible environmental, social and economic costs of climate change for specific sectors. They consider climate-relevant criteria when formulating and approving public investments.
Approach
The project works together with national and regional partners to draw up sets of criteria to facilitate climate-change adaptation for specific sectors. These criteria are incorporated into the national approval procedure for public investments (SNIP). These sets of criteria are being applied on a pilot basis in Piura and Cusco during the formulation of planned investment projects. In concrete terms, the project is performing vulnerability analyses, and identifying adaptation measures, which are quantified and compared using cost-benefit analysis. The project is supporting technical staff who are responsible for formulating and evaluating investment projects at national and regional level while they work with the sets of criteria. Databases of climate change-related information facilitate the decision-making process. National and international workshops and conferences are fostering the exchange of knowledge.
Results
A climate risk assessment has been required for all public investment projects in Peru since October 2013 in accordance with a resolution issued by the Peruvian Ministry of Economy and Finance (MEF).
The MEF has published sector-specific guidelines for taking account of climate change when formulating and evaluating public investment projects in the tourism industry.
An MEF guide explaining the terms and concepts associated with disaster risk management in the context of climate change makes it easier for project planners to understand climate change and its implications for public investments.
An interactive CD with geo-referenced investment projects and updated cartographic material documenting the risks of climate change and climate change helps project planners to make decisions.
Sixty-one Peruvian project planners and evaluators have registered for an online training course on adapting public investment projects to climate change since April 2014. This course was developed in partnership with the MEF.