Costs and benefits of carbon neutrality in Peru: A robust evaluation

What is it about?

Meeting the goals of the Paris Agreement requires all countries to reach net zero carbon emissions by around 2050. This study assesses the costs and benefits of different decarbonization pathways in the agriculture, forestry, and other land use sectors; transport; Energy; waste; and industrial processes in Peru. In its pages, it shows that it is possible to achieve zero net carbon emissions by 2050, through sectoral transformations such as electricity generation based on renewable energy, electrification of the vehicle fleet and of energy uses, energy efficiency, reduction of deforestation, better agricultural and livestock practices, changes in diets, and improvements in waste management and industrial processes. These transformations provide a net benefit of US$140 billion, thanks to operational savings (including energy savings), improvements in productivity and income from ecosystem services, and improved health, among other benefits. In addition, the study evaluates 1,000 additional possible decarbonization routes to analyze the effect of 201 uncertainty factors on emissions, costs and benefits, using the robust decision-making method. The sectoral transformations modeled bring net benefits of between US$20,000 million and US$391,000 million and allow emissions to be reduced between 260 MtCO2e and 520 MtCO2e by 2050. These results support the updating of the National Strategy on Climate Change of the Government of Peru and its policies post-pandemic economic recovery.

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