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Application of the Integrated Green Economy Modelling Tool in Peru

Draft Agenda – Training, Technical Meetings and Workshops

Lima, 1-3 August 2018

Organizers

La Universidad del Pacífico and the Partnership for Action on Green Economy (PAGE) 1 in collaboration with the Ministry of Production of Peru and the Project: “Inclusive Green Economy Policy Making for SDGs: from Implementation to Evaluation”2.

Background

Modelling of green policies in Peru

During the first stages of PAGE Peru, UN Environment supported the Peruvian government to identify basic elements for the construction of a development model based on the principle of green growth. Activities carried out included (i) the identification of priority areas for green growth in Peru through an initial stocktaking study in close consultation with different stakeholders and line ministries and (ii) the ex-ante evaluation of green policies and their social, economic and environmental impact by means of a quantitative assessment. La Universidad del Pacífico (CIUP), was selected as the national counterpart for the development of two analytical studies. The “PAGE stocktaking study for Peru” 3, which involved an initial review of the policy framework, took stock of the evolution of the Peruvian development strategy and proposed some inputs that allow for a clearer definition of what green growth means for the country. The study also identified existing modelling tools in Peru for assessing green growth policies and recommended the use of the Threshold T21 model developed by the Millennium Institute in Washington. The second study, “Green Economy Assessment”4, was finalized by CIUP. The assessment provides an ex-ante analysis of policies and/or policy instruments that are designed to green the priority sectors identified in the stocktaking study. The policies or policy instruments to be assessed must contribute to meeting national sustainable development targets, improve competitiveness, boost economic growth, to diversify the economy and to generate green jobs.

1 Funding partners of PAGE include European Union, Finland, Germany, Norway, Republic of Korea, Sweden and Switzerland. 2 The Project: “Inclusive Green Economy Policy Making for SDGs: from Implementation to Evaluation” is funded by the European Union. 3 PAGE stocktaking study for Peru is available at http://www.un-page.org/files/public/peru_stocktaking_report_0.pdf 4 The Green economy assessment of Peru is available at http://www.un-page.org/file/2812/download?token=hxMh2104

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Green Industry policies in Peru

UNIDO under PAGE supported the development of a Green Industry which emphasizes that sustainable industrial development policies in Peru should be conducive towards a reduction in the intensity of resources in the productive processes. In addition, the report highlights the importance of creating a policy framework (including better access to financing, education, training and clean technologies) aimed at building the capacities of small and medium enterprises (SMEs) that not only reduces informality but also allows SMEs to insert themselves in the green industrial development agenda, as a key source of green growth in the country. Finally, in order to improve the policymaking process, the report recognizes the need to improve the collection and availability of statistics in the area to streamline the analysis of industrial sectors and sub-sectors, as well as to guarantee the constant and decisive evaluation of the selected measures.5

Objectives and scope

As a next step PAGE Programme and the Project “Inclusive Green Economy Policy Making for SDGs: from

Implementation to Evaluation” are supporting the application of the Integrated Green Economy Modelling

(IGEM) framework in the country. 6 The IGEM is a valid modelling tool for assessing green policies in

various sectors including manufacturing. Furthermore, it allows to connect different modelling techniques

such as the System dynamics models to Computable General Equilibrium Models. As mentioned

previously Peru counts with a system dynamic model, the T21 model, and the Ministry of Production has

developed recently a CGE model.

Under the current technical collaboration, two main areas of work have been identified for strengthening

the modelling capacity of Peru. On the one hand, enhancing the appropriation of the T21 Peru model. On

the other hand, greening other modelling tools notably the CGE model of PRODUCE.

Methodology

Training, Technical Meetings and Workshops planned during this mission are the first phase of

implementing the IGEM tool in Peru. In that sense, day 1 is devoted to the system dynamics model T21

Peru. Day 2 will focus on Greening Computable General Equilibrium models and the CGE model of

PRODUCE. Day 3 is aimed at the Integrated Modelling Tool and its concrete application to evaluate Green

Industrial Policies in Peru.

5 The Green Industry Assessment of Peru is available at http://www.un-page.org/files/public/industria_verde_peru.pdf 6 A summary of the Integrated Green Economy Modelling Tool is available at http://web.unep.org/greeneconomy/sites/unep.org.greeneconomy/files/publications/glossy_the_integrated_green_economy_modelling_framework.pdf

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Agenda

Universidad del Pacífico – Jr. Sanchez Cerro 2121, Jesús María, Lima – Room H-301

Part 1 – The System Dynamics Models – the Threshold Model T21 Peru

Part 2 – The Computable General Equilibrium Models – CGE model of PRODUCE

Wednesday, 1 August 2018 – Morning Time Activity

8:30-9:00 Registration

9:00-9:20 Welcome Remarks:

Philippe Vanhuynegem, Director of the ILO Office for Andean countries Sr. Stefaan Pauwels, Head of the Cooperation Section, EU Delegation in Peru Sr. Pedro Olaechea Alvarez Calderón, Congressman (TBC) Sra. Rosa Morales, General Director of Climate Change, Ministry of Environment (TBC)

9:20-9:30 Ronal Gainza, Programme Officer, UN Environment Introduction to the workshop, goals and agenda

9:30-10:45 The Threshold Model T21 Peru

Presenter: PhD. Daniel de La Torre Ugarte. CIUP

Presentation followed by discussion moderated by Ronal Gainza, UN Environment

10:45-11:00 Coffee Break

11:00-12:30 The modeling process of the greening of economic sector(s) in the T21 Peru

Presenter: Mauricio Collado. CIUP

Presentation followed by discussion moderated by José Pineda, UN Environment

Thursday, 2 August 2018 – Morning Time Activity

9:00-10:45 Greening the Computable General Equilibrium Models

Presenter: María Eugenia Ibarrarán, Universidad Iberoamericana Puebla

The Computable General Equilibrium Model México- Energy Sector Presentation followed by discussion moderated by José Pineda, UN Environment

10:45-11:00 Coffee Break

11:00-12:30 The Computable General Equilibrium Model of Ministry of Production

Presenter: Juan Manuel García. PRODUCE.

The Computable General Equilibrium Model Perú- Manufacturer Sector

Open discussion moderated by Lourdes Alvarez, UN Environment

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Part 3 – The Integrated Green Economy Modelling Framework: Introducing the

IGEM tool and potential application in Peru

Contact Persons:

Ronal Gainza – UN Environment, Ronal.GAINZA@un.org Lourdes Álvarez – UN Environment, lourdes.alvarez@un.org Daniel de la Torre – CIUP, dg.delatorreugartep@up.edu.pe

FUNDING PARTNERS

Friday, 3 August 2018 Time Activity

9:00-10:45 The Concept and Methodology of the Integrated Green Economy Modelling

Framework

Presenter: José Pineda, UN Environment

The application to Mexico

Presentation followed by discussion moderated by Daniel de la Torre, CIUP

10:45-11:00 Coffee Break

11:00-12:30 Application of the IGEM tool in Peru: Articulating CGE PRODUCE Model and the T21

Peru Model - further steps

Open discussion moderated by Lourdes Alvarez, UN Environment