Peru has developed systems to track climate finance at domestic and international levels. Domestically, Peru uses its national budget system to identify climate-related expenditures across government entities, with a specific budget item for climate change since 2012. This allows Peru to measure resource allocation against climate priorities. Tracking international finance, Peru analyzes sources like adaptation and mitigation through the Ministry of Foreign Affairs. Challenges remain in comprehensively capturing all climate spending and evaluating impacts, but Peru works to address gaps and avoid duplicative expenditures.

1. María Verónica Villena
Climate Change, Desertificaction, Water Resurces Office
Tracking climate related finance:
Peru experience

2. National Climate Change Estrategy
Institutional articulation on climate change
Tracking climate related domestic funding
Tracking climate related international
funding
Advantages and challenges
Further work
CONTENT

3. National Climate Change Strategy
Approved in 2003, is the framework of all policies and activities related to
the climate change in Peru.
OBJECTIVE 1
Population, economic
agents, Government
increases it awareness
and adaptative
capacity to the potential
and observed effects of
climate change
OBJECTIVE 2
Population, economic
agents, Government
contributes to reducing
greenhouse gas
emissions, and
mainting carbon sinks

4. Institutional articultion on climate change
MEF
TUCC
NPBS
NPIS
MINAM COFIDE
NATIONAL DGCCDRH
FONAM MINAGRI
PROFONANPE
MEM
MINTRA
REGIONAL
OFFICE OF
ENVIRONMENTAL
AND NATURAL
RESOURCES
MANAGEMENT
LOCAL MUNICIPALITIES

5. 1 2 3
Review and analysis
of the main national
and subnational
environment policies,
plans and strategies
Definition of
the main areas
for monitoring
the public
budget
• CEPA (2000)
• FMI (2001)
• First National
Communication to the
UNFCCC
• National Environmental
Plan
•Climate Change National
Strategy
• Information, Research and
Technology
•Capacity Building
•Risk management related to
climate change
•Water resources management
•Soil conservation and
reforestation
•Ecosystem conservation
•Solid waste management
Calculation
(approx) of
climate change
national budget
(2005) Environmental Budget :
Initial Exploration- local
(2008) Towards the cuantification
of Environmental National
Expenditure by the Government
Entities-national
(2009) Climate Change and
National Budget- regional
Tracking climate related domestic resources: Definition

6. Environment
2. Strategic Development, Conservation and
Sustainable Use of Natural Heritage
1. Integral management of environmental quality
a) Conservation And Sustainable Use Of Biological
Diversity And Natural Resources
b) Integrated and sustainable ecosystem
management
c) Climate change management: implementation of activities, projects and / or related to
the management of climate change This includes the implementation of mechanisms for
capacity building, technology transfer and evaluation of the potential for climate change
management (adaptation and mitigation).
d) Integrated water resources management
e) Land management
Tracking climate related domestic resources: Definition

7. Tracking climate related domestic resources (II):
Planning mechanisms
 Results Based Budgeting Programs
- Based on evidence, the planning and allocation of public resources is
oriented to a specific result/change in the population.
- Its level of disaggregation allows to identify specific interventions that could
also contribute to address cross-cuting issues, like climate change.
 Integration of climate-change related risks within the
National Public Investment System
- Incorporation of adaptation measures to avoid potential benefits
interruptions or losses as part of the projects’ investment.
- Costs of climate change measures identified.

8. Tracking climate related domestic resources (III): Tool
The Peruvian National Budget System has developed a financial management tool
that covers in real time the entire expenditure chain of public resources at the
national and subnational levels.
The structure of the system answers to the following questions:
Who expends the public resources?
Where does the resources come
from?
What is the state of public spending?
What are the activities and projects that
the resources are financing?
Where the resources are being spent?
Which is the expenditure structure?
Since 2012, there is a specific climate change budget item which allows tracking and
assessment of expenditures related to climate change activities

9. Tracking climate related domestic resources (III): Tool

10. Tracking climate related international resources
The National Agency for International Cooperation within the Ministry of
Foreign Affairs (APCI) is the institution entrusted with managing international
cooperation.
59.4%
35.5%
5.1%
Mitigation
Adaptation & DrM
MCC & ACC
Allocation of international resources
(2005-2013)
Source: MINAM (2015)
Adapting the Global Landscape of
climate finance (2013), we conduct
an analysis of the overall
international climate finance in
Peru.
• Mitigation : Capacity building
technology transfer, technology
support, and NAMA developing.
• Adaptation: Capacity building,
water management, micro
agriculture strengthening,
information development, and
institutional strengthening

11. Advantages and challenges
Advantages
• Allows the measurement of
resource allocation according
to national priorities
(management of climate change
aspects) and identification of
gaps.
• Helps to identify needs on
implementation at government
levels (i.e., project design).
• Gives a permanent overall view
of the national budget
availability for climate change.
• Provides consistent reporting
of budget statements, financial
and accounting.
• Monitoring of budget
performance at different stages.
Challenges
• Need as next step the
evaluation of impacts of
public expenditures in climate
change.
• As climate change is a cross-
cuting element, not all public
expenditures related to
climate change are reflected
in the climate change budget
item.
• Capacity building for the
registry and use of the
information, as climate change
is a new budget item.
• Definitions for private and
international climate related
resouces

12. Peru is working on the identification of an institution
that could manage the climate project portfolio in order
to address needs evaluation, monitoring,
accountability and impact evaluation of the
resources used.
This will also contributes with the country’s effort of
avoiding duplicity on expenditure and would
contribute to identify gaps on mitigation and adaptation
initiatives.
Further work

13. Thank you!
mvillena@minam.gob.pe