Draft ToR Peru

7/30/2019 Draft ToR Peru

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Terms of Reference

REOI Version June 27, 2012

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Draft Terms of Reference

Programme for supporting up-scaled mitigation action in Perus

waste sector under the Nordic Partnership Initiative


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Contents

1. Background ___________________________________________________________________________ 3

1.1 International context __________________________________________________________________ 3

1.2 Nordic Partnership Initiative on Up-scaled Mitigation Action ___________________________________ 3

1.3 Main Findings from the Feasibility Study __________________________________________________ 3

2. Pilot Programme for Peru ________________________________________________________________ 42.1 Objectives of the Pilot Programme in Peru ________________________________________________ 7

2.2 Scope of the Services ________________________________________________________________ 72.2.1 Task 0/1: Setting up of programme team and kick off _______________________________________ 9

2.2.2 Task 0/2: Facilitation of Programme Steering Committee ____________________________________ 92.2.3 Task 0/3: Facilitation of a broad consultation process with central government entities, localgovernments and the private sector (for-profit and not-for-profit) as well as international donors; ___________ 9

2.2.4 Task 0/4: Intermediate and final report ___________________________________________________ 10

2.2.5 Task I/1: Launch and Implementation of a Waste Data Survey______________________________ 10

2.2.6 Task I/2: Facilitation of Tier 3 (2006 IPCC Guidelines) Emissions Calculation _________________ 10

2.2.7 Task I/3: Establishment of Waste Management Monitoring System __________________________ 112.2.8 Task II/1: Definition of Business-as-usual (BAU) calculation for future waste streams and GHG

emissions as per solid waste classification and treatment, taking into account current and planned policiesand measures __________________________________________________________________________________ 112.2.9 Task II/2: Option assessment for domestic mitigation identifying targets, barriers (financial,institutional, socio-economic, MRV, enforcement) and opportunities ___________________________________ 112.2.10 Task II/3: Assisting Peruvian Government with formulating a National Waste ManagementStrategy; 122.2.11 Task III/1: Designing a NAMA fully based on and integrated in the policies, targets and institutionalconsiderations identified under the National Waste Management Strategy;_____________________________ 12

2.2.12 Task III/2: Performance Metrics and MRV ________________________________________________ 13

2.2.13 Task III/3: Reference levels and/or benchmarks for crediting and trading _____________________ 14

2.2.14 Task III/4: Models and options for domestic (advance) funding ______________________________ 142.2.15 Task III/5: Proposal on the international funding options (multilateral and/or bilateral); negotiation

support to Peruvian Government; and distribution of international funds to local governments, installationsand others _____________________________________________________________________________________ 15

2.3 Deliverables _______________________________________________________________________ 15

2.4 Estimation of timeline ________________________________________________________________ 17

2.5 Team Composition __________________________________________________________________ 17

2.6 Host country missions _______________________________________________________________ 20


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1. Background

1.1 International context

According to the Bali Action Plan, developing countries should consider the implementation of NationallyAppropriate Mitigation Actions (NAMAs) in the context of sustainable development, supported and enabled bytechnology, financing and capacity building, in a measurable, reportable and verifiable (MRV) manner. TheCopenhagen Accord as well as the Cancun and Durban Agreements further reinforced the notion, stating thatNAMAs seeking international support shall be recorded in a registry and subject to international MRV.

NAMAs can be categorised as unilateral NAMAs (funded by the host country), supported NAMAs (funded bydirect international support) and credited NAMAs (funded by market-based crediting mechanisms), and supportedby one or more types of policy instruments.

Although the concept of NAMAs enjoys wide acceptance and support, there is still a lack of concrete examples

and understanding of what could constitute a NAMA, how it could be structured, and what steps are needed tobuild national readiness to implement NAMAs and to access international climate finance.

1.2 Nordic Partnership Initiative on Up-scaled Mitigation Action

In autumn 2010, the Nordic Working Group for Global Climate Negotiations (NOAK) and the Nordic EnvironmentFinance Corporation (NEFCO) launched the Nordic Partnership Initiative on Up-scaled Mitigation Action (NPI) (atthat time with the name NOAK-NEFCO Partnership Initiative, which was later changed to NPI) to explore anddemonstrate how international climate finance can be matched with up-scaled mitigation plans in developingcountries. In a bottom-up approach, the Initiative seeks to establish a concrete case to illustrate the mandategiven to developing countries in the Cancun Agreements to take nationally appropriate mitigation actions(NAMAs), supported and enabled by technology, financing and capacity-building, with the aim to conceptualise,

test and learn how a future international climate regime, including new market-based mechanisms, could bedesigned to support up-scaled NAMAs in developing countries.

The first step of the NPI was a Feasibility Study to examine the potential and options for designing andimplementing a Pilot Programme for NAMAs. The Feasibility Study covered two potential partner countries, Peruand Vietnam, with a focus on the solid waste in Peru and on the energy efficiency in industry in Vietnam. Thesehost countries and sectors were selected by NOAK based on discussions with host countries.

The second step of the NPI was the launch of the initiative in COP17 in Durban, where the initiative was endorsedby ministers or vice-ministers from Peru, Vietnam, Denmark, Finland, Norway and Sweden.

The next step is to implement a Pilot Programme in both countries, with the aim to improve readiness for bothcarbon market and other support mechanisms through technical and financial assistance. Readiness activities

should address relevant barriers to up-scaled mitigation as well as gaps in knowledge, data availability,institutional capacity etc.

As a result of the Pilot Programme, the host country should be able to prepare and implement a full-scale schemeof a clearly specified NAMA in accordance with the Cancun, Durban and any future Agreements which couldattract international climate finance through the carbon market and/or other international climate financial sources.

1.3 Main Findings from the Feasibility Study

The methodology of the Feasibility Study has primarily been exploratory with a focus on bilateral cooperation,institutional process and extensive in-country stakeholder consultation between host and donor countries. Thehost countries, one a lower middle income country (Vietnam), the other an upper middle income country (Peru),were selected by the Nordic Project Group based on initial feed-back from both countries and an interest in thepioneering work. The economic and industrial sectors chosensolid waste and renewable energy for Peru andon renewable energy and energy efficiency for Vietnamhave been in line with host country priorities. The


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measures ultimately proposed have emerged following a continuous public/private stakeholder engagementprocess.

Week-long scoping missions to both countries, prepared and facilitated by the authors of this report with localsupport teams, allowed for broad contacts between Nordic emissaries, host country authorities at central andlocal government levels and other public as well as private stakeholders including financial institutions and

business associations. The scoping missions led to an understanding of climate finance and mitigation actionpriorities in each country.

In relation to Peru, the Feasibility Study resulted in two specific findings: firstit found that the waste sector shouldbe given priority over the energy sector and secondthat a feasible Pilot Programme would consist of a readinessexercise to address gaps in data availability, data quality and technical and institutional capacity to prepare Perufor up-scaled mitigation action and multiple sources of funding.

2. Pilot Programme for Peru

Peru, Party to the United Nations Framework Convention on Climate Change (UNFCCC) since 1992 and to theKyoto Protol since 2002, is a medium-income developing country (9,200 USD per capita) with a population of 29million and an annual GDP of 150 billion USD. Economic activity is concentrated in the metropolitan area of Limawhich also hosts 30% of the countrys entire population.

Following the countrys Second National Communication to the UNFCCC from 2010, annual greenhouse gas(GHG) emissions stand at 120 Mt CO2e (emissions from land use, land-use-change and forestry (LULUCF)included), less than 1% of global yearly emissions. However, total figures for the country are up 21% from 1994and continuous economic growth (about 6% annually over the past decade) suggest that the business-as-usual(BAU) GHG output will considerably increase further.

According to the same source, Perus waste sector is responsible for an odd (upward pointing) 6% of total countryGHG emissions. According to estimates,

1the daily waste production stands at about 13,000 tonnes of which

roughly two thirds are collected at the source and subject to treatment. Mostly, however, the treatment amounts tolittle more than discharges at illegal dumps (including rivers and the sea) or open incinerations. The country hasonly eight sanitary landfills, five of which are in Lima, and there is a separate landfill for hazardous waste.

Existing waste regulation is not consistently enforced and suffers from a lack of intra-governmental cooperation atvarious levels. At the central level, the waste sector is regulated by both the Ministry of Environment (MINAM) andthe Ministry of Health, through its Direccin General de Salud Ambiental (DIGESA). However, it is themunicipalities which are responsible for local waste planning and enforcement. While the Ley General deResiduos Slidosrequires municipalities since 2005 to develop so called Planes Integrales de Gestin Ambientaly de Residuos Solidos(PIGARs) to define waste management operations, responsibilities and planning targets,only about 40% of them have done so by 2011. The capital Lima is among those that have thus far failed toprovide its plan.

Peru has formulated a number of policy goals for its waste sector, chiefly in its Integrated Solid WasteManagement Plan of 2009 and its Mitigation and Action Plan of 2010 also listed the solid waste sector as apotential NAMA sector.

1Consejo Nacional del Ambiente, Plan Nacional de Gestion Integral de Residuos Solidos (2009).


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National planning is seconded by international initiatives.The InterAmerican Development bank (IADB), forinstance, has initiated a programme that aims at reducingemissions from landfills; the Peruvian authorities, for theirpart, would like to realise this programme within a CleanDevelopment Mechanism (CDM) Programme of Activities

(PoA). The planned Programme on upscaled mitigationaction and finance may complement, or build on,initiatives such as this one. However, it should go beyonda mere replication of CDM activities and may well respondto broader waste policy objectives, as represented inFigure 1.

Figure 1: Principles of waste management measures.

Data situation

The most recent data on GHG emissions from Peru is available from an inventory of the year 2000. To whatextent the decade-old source accurately reflects the status quo is little known. This is an important factor for thedevelopment and definition of policies and measures under any future NAMA. Any emission reductionassumptions or estimation of potential may be substantially outdated.

According to the inventory of emissions in the year 2000, total emissions of greenhouse gasses from the wastesector amount to 7.3 MtCO2e, The majority of these emissions are reported to be methane emissions fromlandfills and dumps(6.3 Mt) and these emissions are expected to grow to well over 11 Mt by 2050 in the Businessas Usual scenario.

2However, verification of these figures is difficult. Crucially, Peru lacks a national solid waste

inventory that provides reliable insight in the waste quantities, locations and composition. Available local data isconfined to what the General Environmental Quality Direction of MINAM each year publishes in its annual solid

waste reports (since 2008). These reports provide broad estimates of the waste quantities generated. For theelaboration of these reports two sources of information are used, the Integrated Waste Management Plan of 2009and the countrys Solid Waste Management System (SIGERSOL).

SIGERSOL is the system by which municipalities may transmit solid waste data to the Minis try of Environment.The system is also used to make information publicly accessible through a dedicated web-site

3and includes data

on waste quantity collected; areas where the waste is collected; type of waste collected; way in which the waste isdisposed and capacity building activities in the waste sector. SIGERSOL does not contain data or estimates on

2Ministerio del Ambiente (Peru), El Peru y el cambio climatico, Segunda Comunication Nacional del Peru a

la Convencion Marco de las Naciones Unidas sobre Cambio Climatico, 2010; MINEM (2009)..

3For further information, see http://www.sigersol.pe/

Prevention

Minimisation

Reuse

Recycling

Energy recovery

Disposal

Most favourable

Least favourable


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illegal disposals. The system depends on the cooperation of the reporting entities, the municipalities across thecountry, and as many municipalities do not submit data, there are no comprehensive data updates.

The most up-to-date document on waste streams in Peru is the Situacin de la gestin y manejo de los residuosslidos en el pas from 2010. However this report does not include estimates of greenhouse gas emissions.Thus, the inventory of 2000 makes the latest calculations on actual emissions, based on Tier 1 IPCCC Inventory

Guidelines since data were lacking for a more country-specific approach.

The IPCC Guidelines for National Greenhouse Gas Inventoriestheir latest version is from 2006--defines threelevels of greenhouse gas estimation methodologies for emissions from solid waste disposal. Tier 1 is the mostbasic approach and Tier 3 is the most country-specific approach:

1. Tier 1 is a First Order Decay (FOD) method using mainly default activity data and default parameters,2. Tier 2 is a method that uses the IPCC FOD approach as well but replaces some default values with

accurate country-specific activity data on current and historical waste disposal at solid waste disposalsites. Historical waste disposal data for 10 years or more should be based on country-specificstatistics, surveys or other similar sources. Data are needed on amounts disposed at the solid wastedisposal sites.

3. Tier 3 methods are based on the use of good quality country-specific activity data (see Tier 2) and the

use of either the FOD method with (1) nationally developed key parameters, or (2) measurementderived country-specific parameters. The inventory compiler may use country-specific methods thatare of equal or higher quality to the FOD-based Tier 3 method. Key parameters should include thehalf-life, and either methane generation potential or degradable organic carbon (DOC) content inwaste and the decomposing fraction of DOC.

In Peru, where many municipalities do not report on waste streams and where comprehensive country-specificdata is largely missing, anything other than Tier 1 calculations are cumbersome. However, even on the basis ofgeneric default figures: on both generation of waste per capita

4and generation of waste per municipality

5, the

calculation of corresponding GHG emissions made by Peru is arguably inconclusive. On the other hand, when itcomes to national forecasts for waste generation and treatment, it is difficult to assess the validity of the figuresgiven that parameters, assumptions and default measures used are largely unknown.

On this basis, identifying both mitigation options in the waste sector and barriers to overcome is difficult. Withoutreliable data on emissions, mitigation options may not have the envisioned effect or the misguided mitigationactions may be targeted.

Perus NAMA UNFCCC Submission

The goals thus far identified by the Peruvian Government for the solid waste sector are of a broad nature whichask for further details on policies and measures. In its NAMA submission to the UNFCCC, the PeruvianGovernment covers the waste sector as follows: Design and implementation of measures that would allow for thereduction of emissions that are caused by inadequate treatment of solid waste.

6In the Second National

Communication which boasts a range of fairly detailed sectoral NAMAs (on transport, energy, industrialprocesses, agriculture and forestry/land-use), the NAMA on waste remains diffuse. It lists

7the generation of

energy and the development of new technology as possible measures as well as developing integrated wastemanagement projects with access options for the international carbon markets, such as the transformation ofillegal dumps into controlled landfills, the generation of electricity through its processing, burning and flaring.Further mitigation options, the Second Communication continues, are adequate waste treatment, recycling,composting and final storage, implementation of treatment programmes and treatment of waste water and the

4Consejo Nacional del Ambiente, Plan Nacional de Gestion Integral de Residuos Solidos (2009), page 9.

5Second Communication, p. 105.

6Embajada de la Republica del Peru en la Republica Federal de Alemania, OOII/2010/03, of 21 June

2010.

7Second Communication, page 112.


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promotion of usageof agriculuiral waste such as biomass for energy generation through biodigesters, biomassboilers and others.

8

2.1 Objectives of the Pilot Programme in Peru

The overarching aim of the Pilot Programme is to improve Perus readiness to benefit from international climate

finance and/or the carbon market for supporting up-scaled mitigation action in the waste sector.

The readiness activities shall address gaps in data availabilitiy and quality and technical and institutional capacity,as well as relevant technical, financial and other barriers to up-scaled mitigation and private sector engagement,including:

Collection of updated data on emissions and emission reduction potential;

Capacity to oversee and manage waste streams;

Capacity to generate and implement waste strategy across different levels of Government andaddressing the private sector;

Identification of barriers to mitigation action, and proposals for addressing them;

MRV system of international standard;

Identification of appropriate support instruments for mitigation action, including potential sources offinance and funding, requirements and criteria for support;

Relevant institutional arrangements, capacity building and training.

The Pilot Programme will consist of a preparation and follow-up stage and entail three phases: 1) Developing asolid waste inventory and identifying options to achieve significant emission reductions in this sector as areadiness activity; 2) Facilitating the development of a comprehensive national waste management strategy withthe purpose of assisting the Government of Peru to facilitate the development of targeted policies and measures;and 3) elaborating one NAMA option identifying a measure resulting in substantial emission reductions, detailedlist of tasks, institutional procedures including public-private partnerships, allocation of responsibilities and efforts,and funding options.

The Programme should give special emphasis to exploring opportunities to utilise market-based (crediting)mechanisms in Perus solid waste sector, implying a results-based approach for provision of future support.However, the Programme itself is not expected to generate verified carbon credits.

Broad participation of stakeholders including households, the countrys large informal waste sector, industry andNGOs, from an early stage will be crucial. Throughout the Programme, close cooperation with a donor-host-country steering group (Programme Steering Committee) is foreseen.

Ultimately, the Pilot Programme should enable Peru to prepare for full-scale waste sector NAMA implementationin accordance with the international regulatory framework (Bali Action Plan, Copenhagen Accord, CancunAgreements, Durban Agreements and the outcome of ongoing negotiations) aiming at gaining access to newinternational climate finance through a variety of sources, including markets.

Furthermore, the Pilot Programme aims to explore and share valuable lessons on practical issues relating to newclimate finance and new carbon market mechanisms under negotiation. The Pilot Programme offers a uniqueopportunity for the Nordic countries and Peru to pioneer into new support mechanisms for up-scaled mitigationaction, act as a model for similar initiatives and share their valuable insights with the global community.

2.2 Scope of the Services

The Pilot Programme shall be initialized through preparatory works and it shall consist of three major phases:

8Ibid., page 114.


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Preparatory Stage and Continuous Works

Setting up a programme team with focal point, business plan and other; kick off;

Facilitating the set-up of a donor-host-country steering committee (Programme Steering Committee);and regular meetings;

Facilitating broad stakeholder consultations with central government entities, local governments and the

private sector (for-profit and not-for-profit) as well as international donors; Preparation of an intermediate and a final report;

Phase I: Establishment of a comprehensive waste inventory

Launch and implementation of a waste data survey;

Facilitation of a Tier 3 (2006 IPCC Guidelines) calculation of GHG emissions from solid waste through thecollection of up-to-date country-specific data and the country-specific use of relevant parameters, defaultfactors and methods;

Establishment of a Waste Monitoring System;

Phase II: Establishment of a National Waste Management Strategy

Definition of a business-as-usual (BAU) calculation for future waste streams and GHG emissions as persolid waste classification and treatment, taking into account current and planned policies and measures;

Option assessment for domestic mitigation identifying targets, barriers (financial, institutional, socio-economic, MRV, enforcement) and opportunities;

Assisting the Peruvian government with formulating a National Waste Management Strategy, whichenables international support;

Phase III: Establishment of at least one detailed NAMA option

Designing one waste-sector NAMA fully based on and integrated in the policies, targets and institutionalconsiderations identified under the National Waste Management Strategy;

Performance metrics and MRV;

Reference levels and/or benchmarks for crediting / trading; Models and options for domestic (advance) funding

Proposal for international funding options (multilateral and/or bilateral); and distribution of internationalfunds to local governments, installations and others;

Involvement of Center for Clean Air Policy (CCAP) and the Mitigation Action Implementation Network(MAIN)

The Government of Denmark is planning to fund its part of the NPI's Pilot Programme in Peru throughconsultancy services from CCAP's MAIN programme. CCAP has proposed to take the lead on some aspects ofthe Pilot Programme, while for other parts CCAP has proposed to provide peer review of or input to thedeliverables from the lead Consultants. The proposal from CCAP covers certain of the elements of this ToR, andis attached hereto as Appendix 1.

During the Preparatory Stage, Phase I, and Phase II, it is not planned that CCAP will be responsible for any of thedeliverables or tasks listed in the ToR, but CCAP has proposed to review key work products set to be prepared bythe Consultants that are important to the NAMA policy work set to take place in the third phase of the pilotprogram. Additionally, during the first year of the programme, CCAP has proposed to undertake backgroundresearch and analysis that will support the subsequent work on NAMA development.

During the Preparatory Stage and Phase I, CCAP envisions participating in the kick-off and Steering Committeemeetings in order to meet the key policy makers and understand their goals and concerns; and to develop athorough understanding of Perus waste sector, including current processes and facilities, the roles of the differentplayers, and the characteristics of the waste including GHG measurements and uncertainties.


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During Phase II, CCAP has proposed to weigh in on the assumptions and methodologies used to projectbusiness-as-usual conditions and GHG emissions in the waste sector, and to provide input to the mitigationoptions, barriers and opportunities identified by the Consultants. CCAP has also proposed to participate in thefirst stakeholder workshop to gain an understanding of the views and concerns of the different local interests.

Furthermore, CCAP has proposed to closely monitor aspects of the international negotiations, as well as expert

papers and case studies that relate to or could inform the development of crediting NAMAs. They will share theirfindings and assessments with the Consultants and the Steering Committee.

For the Preparatory Phase, Phase I and Phase II, CCAPs proposed role is outlined above, and for further detailsreference is made to Appendix 1.

For Phase III, CCAPs proposed role and deliverables are, where relevant, described under each task below. Inaddition, Appendix 1 provides a comprehensive description of CCAPs envisioned participation.

2.2.1 Task 0/1: Setting up of programme team and kick off

The objective of this task is to establish the operational infrastructure for the implementation of the PilotProgramme. The works partly precede the implementation of the Pilot Programme; partly, they concern ongoingtasks for Programme implementation.

The task includes, but is not limited to:

Presenting the team including its responsibilities and focal point to the contracting authority;

Presenting a plan with budgets and timelines for the implementation of the Pilot Programme to thecontracting authority;

Preparing and organizing a kick-off meeting with the contracting authority and a first meeting withrepresentatives from Peru;

Preparing quarterly status reports and other documents required from time to time;

Preparing and organizing quarterly meetings with relevant parties;

2.2.2 Task 0/2: Facilitation of Programme Steering Committee

A Steering Committee is established to oversee the programme implementation and to allow for exchange ofviews between the host and donor countries. The objective of this task is to assist the Steering Committeethroughout the assignment.


Preparing programme documentation for public and non-public use to inform relevant parties in the donorand host countries;

Facilitating bi-annual meetings of the Programme Steering Committee (invitations, agenda preparations,preparation of relevant documents, logistics);

2.2.3 Task 0/3: Facilitation of a broad consultation process with central government entities, localgovernments and the private sector (for-profit and not-for-profit) as well as internationaldonors;

The objective of this task is to ensure that key national stakeholders be identified and consulted for all tasksdescribed above as appropriate, in order to understand:

a) national development priorities and policies and their impact on greenhouse gas emissions from solidwaste disposal;

b) whether the proposed mitigation solutions have been considered and/or tested before, and associatedlessons learned;

c) the different responsibilities regarding waste management, public and private, including the informal

waste sector, and the impact on civil society;d) the barriers faced by different actors to implementing/scaling up planned mitigation actions and how theycould best be addressed;


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e) how the project will complement, reinforce and build on existing projects/investments; and,f) the role of carbon market mechanisms, including implications to the design, institutions and capacity and

data needs of the Programme and potential NAMAs.


Identifying relevant stakeholders from the public sector, the private sector, international donors, andothers;

Propose options for and conduct stakeholder consultations including surveys, information campaigns,publication-and-comment phases, workshops and specific meetings

2.2.4 Task 0/4: Intermediate and final report

The objective of this task is to record the results and findings over the course of the assignments and to providelessons learnt input and recommendations to the international debate with a view of long-term replicability.


Providing an intermediate report after twelve (12) months of the Pilot Programme; Providing a final report after conclusion of the Pilot Programme;

2.2.5 Task I/1: Launch and Implementation of a Waste Data Survey

The objective of this task is to prepare the data field for a country-wide waste inventory.


Identification of a survey template and survey infrastructure (definition of recipients, availability andmodes for reach-out);

Production and distribution of survey material and facilitation of responses;

Assessment and evaluation of survey results;

2.2.6 Task I/2: Facilitation of Tier 3 (2006 IPCC Guidelines) Emissions Calculation

The objective of this task is to prepare an up-to-date, comprehensive and accurate methodology for thedevelopment of an inventory.


Identifying all waste types and major sources, municipal, commercial, other, that generate greenhousegas emissions from solid waste disposal. Excluded are inert types of waste like some types of industrialwaste or mining waste. The consultant is requested to consider whether improved information on wastethat is not disposed on landfills, like organic argicultural waste that is composted or biomass waste that is

combusted with energy recovery would be useful and feasible for a comprehensive inventory giving abasis for a NAMA in Peru's waste sector;

Using data collection methods consistent with the 2006 IPCC Guidelines for inventories; of the differentgreenhouse gas emissions from solid waste disposal, only methane is relevant; the CO2 emissions canbe excluded because the carbon is of biogenic origin; net CO2 emissions from biogeneic origin areaccounted for in sections of the national greenhouse gas inventory other than waste.

9Following the IPCC

Guidelines N2O emissions from solid waste disposal can be ignored since they are insignificant.

Building a country-specific greenhouse gas inventory for waste using or establishing appropriatemethodologies and replacing current default to achieve a Tier 3 methodology level;

Proposing data collection methods for emission factors, applied methods, as well as quality control andassurance procedures in order to improve the quality of the Peru solid waste greenhouse gas inventory;

9These emissions are accounted for in the Agriculture, Forestry and Other Land Use (AFOLU) section.


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Providing methodologies on how to estimate emissions from solid waste based on the most up-to-dateIPCC Guidelines and develop an Excel-based model that can be used to estimate the greenhouse gasemissions from waste disposal; The model should comply with the Tier 3 approach in the 2006 IPCCGuidelines for waste inventories;

Training Peruvian institutions (MINAM, SIGERSOL, other) in use of the model; in setting up theinventories; and in improving existing practices.

2.2.7 Task I/3: Establishment of Waste Management Monitoring System

The objective of this task is to enable Peru to monitor country-wide relevant waste streams.


Providing waste management solutions that allow for tracking and management of industrial, municipaland other waste;

Establishment of data collection mechanisms to enable comparison with forecasted levels of achievementand key performance indicators;

Propose and implement changes to SIGERSOL to make it more suitable for the establishment of a

country-wide waste management performance system that facilitates GHG emission data handling,calculation and reporting.

2.2.8 Task II/1: Definition of Business-as-usual (BAU) calculation for future waste streams andGHG emissions as per solid waste classification and treatment, taking into account currentand planned policies and measures

The objective of this task is to make reliable forecasts of future waste stream and GHG emission developmentsand effort-linked scenarios per solid waste classification and treatment.


Identification of emission trends and (economic) developments that affect waste production andcomposition (for example, economic growth, changes in consumption and production patterns, changesin waste production by households, efficiency of food processing and use of organic raw materials); theobjective of the forecast is to set the baseline emission parameters and/or level against which the impactof mitigation actions can be quantified and a crediting threshold agreed;

Providing an overview of current waste policies in Peru and their performance including identifying gapsin current legislation, planned waste management policies and issues with enforcement;

Making well-substantiated forecasts of the future development of these factors and the related productionof waste and emissions from waste disposal up to 2020 taking due account of national policies andmeasures not linked to the NAMA intervention;

Establishing a system that allows for annual updates of the BAU calculation in order to enable a dynamicestimation of a crediting threshold, if deemed as necessary;

The system should also mark which emissions are mitigated, or planned to be mitigated under CDMproject activity, e.g. from landfill methane capture and combustion projects.

2.2.9 Task II/2: Option assessment for domestic mitigation identifying targets, barriers (financial,institutional, socio-economic, MRV, enforcement) and opportunities

The objective of this task is to explore mitigation options relying on best international practices and the nationalcircumstances of Peru. Best international practices should focus on mitigation efforts but also include socio-economic and other waste policy priorities. Generic principles such as waste prevention, minimisation, reuse,recycling, energy recovery and waste disposal should guide the research. The task includes, but is not limited to:

Identification of cost-efficient mitigation options for Peru which target both waste generation and wastemanagement:

o

Life-cycle based integrated solid waste management (3Rreduce/reuse/recycle): sourcereduction; segregation at source; collection; transport; treatment; landfills; incineration; recycling,


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digestion and composting; the objective would be to reduce emissions from waste handling anddisposal without increasing emissions from other sources (e.g. from waste transport);

o Best waste collection and disposal practices;o Waste-to-energy solutions;o Other;

Drafting of an abatement cost curve for Peru's waste management sector which shows the costs andabatement potential of different mitigation options.

Analysis of the availability, enforcement and impact of regulations and economic tools;

Assessment of the institutional framework, resources and jurisdictions for current institutions;

Analysis of the efficiency and effectiveness of collection, treatment and disposal system includingtechnologies;

Understanding the role of different stakeholders at different levels of the waste generation andmanagement chain exploring synergies and specifically addressing the informal waste sector;

Identifiying financial needs and modes and sources of income including user charges, penalties/fines,levies, environmental bonds, environmental funds, public loans, private sector incentives, andinternational funding.

2.2.10 Task II/3: Assisting Peruvian Government with formulating a National Waste Management

Strategy;

The objective of this task is to prioritize mitigation options established, put them into a coherent frameworkaddressing financial, institutional and operational needs, and set a timeline for implementation includingmilestones and conditionalities.

The task includes but is not limited to:

Presentation of the NPI and results of task 2.2.8 and 2.2.9 in the form of a report and a workshop forPeruvian stakeholders;

Addressing comments, position papers, and other feedback for an updated report;

Establishing on the basis of the consolidated findings a National Waste Management Strategy proposingpriorities, setting implementation steps, timetables and providing budgetary estimates.

2.2.11 Task III/1: Designing a NAMA fully based on and integrated in the policies, targets andinstitutional considerations identified under the National Waste Management Strategy;

The objective of this task is to build, on the basis of the National Waste Management Strategy and the generalobjectives of the NPI, an implementing measure, i.e. operating NAMA. Possible NAMAs may incorporate, interalia, one or more of the following measures: closure of informal and illegal dumps; improved waste collection;implementation of controlled landfills; treatment of landfill gas; implementation of waste recycle systems; andimplementation of waste to energy systems. CCAP has proposed to take the lead role in carrying out this task, incollaboration and consultation with the Consultant, the Ministry of the Environment, the Programme SteeringCommittee, and key public and private stakeholders as identified by the consultants and the Ministry of theEnvironment.


Developing one comprehensive plan for mitigation action in the Peruvian waste sector highlighting:o Institutional responsibilities and opportunities;o Legislative and governance needs;o Detailed map of actions and targets;o Detailed map of policy instruments needed to trigger/incentivize mitigation actionso Detailed map of technology and business procedures to be used;o A detailed timeline;o Budgetary needs;o Options for designing a NAMA what kind of NAMA suitable for sector, matching of policy

instruments and NAMA support

Designing the NAMA so that it:o targets an action that CDM has failed to finance at a relevant scale;


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o guarantees central and local Government involvement and private sector involvement;o brings verifiable co-benefits that make the NAMA Nationally Appropriate, preferably by reaching

out to the poor and support their development in a sustainable manner;o addresses a barrier that prevents existing policy from being effective;o supports an action where data quality is either already at high level or is easy to bring to a

sufficient level for international MRV in accordance with relevant guidelines;

o enjoys broad local support;o directly contributes to a verifiable reduction of greenhouse gas emissions in the short/medium

term;o is able to mobilise further funds from other sources like the private sector or development banks

and organisations;o complements existing activities and avoids duplication;

ideally has a large replication potential within Peru, for example by targeting the marketdemonstration of an activity that can be further scaled up.

Consulting with the Peruvian Ministry of Environment and public and private stakeholders throughout thedesign phase;

Presenting the NAMA designed during a workshop in Peru.

CCAP has proposed to take the lead in carrying out the above tasks and be responsible for delivering a

detailed report describing a NAMA option, in collaboration and consultation with the Consultant, the Ministryof the Environment and the Programme Steering Committee.

The Consultant will be responsible for the following tasks:

Develop a participant list for the workshop where the NAMA is presented, in consultation with theProgramme Steering Committee;

Co-ordinate all meeting logistics related to the workshop, and make practical arrangements as necessary.

2.2.12 Task III/2: Performance Metrics and MRV

The objective of this task is to create a performance matrix for the NAMA developed in Task III/1 that ensures

implementation, creates measurability and/or comparability, and facilitates funding, including through new market-based mechanism(s).

The tasks includes, but is not limited to:

Designing an MRV system that defines performance targets and quantitative and qualitative metrics formonitoring and verification; the metrics are to be integrated in a performance matrix; metrics shall includegreenhouse gas mitigation indicators but may also include targets such as social impact, reducedpollution, sustainably enhanced economic activity, etc.;

Assessing to what extent the impact of the NAMA on greenhouse gas emissions can be measured,reported and verified with the least amount of effort and costs in addition to the data available through thenational inventory;

Using, where available, monitoring, reporting and verification standards developed under theConvention;10 if they are not (yet) available, alternative standards should be proposed;

Explore the extent to which the to-be-built Waste Management Monitoring System and existing wastedata collection systems such as SIGERSOL and the associated greenhouse gas inventory model cansupport MRV of the NAMAs and make suggestions for an integrative use;

Suggesting alternatives that complement the data collection systems in place for the waste emissionsinventory, in particular to enhance accuracy on project or programme level, especially taking into accountthe difficulties of monitoring illegal waste disposal;

Identify most appropriate institutions to be involved in performing the monitoring of the NAMA includingprivate institutions and, if possible, the informal waste sector;

10See e.g. Decision 1/CP.16 Outcome of the work of the Ad Hoc Working Group on long term cooperative

action under the Convention, and Decision 2/CP.17 as well as ongoing regulatory and practicaldevelopments, including decisions of COP 18.


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Designing a monitoring plan;

Designing of a User Guide;

Training of staff engaged in data collection and verification process.

CCAP has proposed to help the Consultant design an MRV system (first bullet) and will also help in providing andapplying the MRV standards developed under the Convention (third bullet). CCAP has also also proposed to

advise the Consultant on its assessment of the extent to which the impact of the NAMA on GHGs can bemeasured, reported and verified at the least cost (second bullet).

The technical assessments called for under bullets 4-9 will be conducted entirely by the Consultant, and theConsultant will be responsible for the final deliverables.

2.2.13 Task III/3: Reference levels and/or benchmarks for crediting and trading

The objective of this task is to formulate a reference level in comparison to which action can be measured andtranslated into funding, through creditable units or other.


On the basis of the BAU study (task II/1) and the option assessment (II/2) formulate credible GHGemission reference levels reflecting different levels of financial, institutional and technological support;

Reference levels for methane emissions from decomposition of organic solid waste should bestandardized and capable of overcoming limitiations inherent in CDM baseline calculations;

Defining other (including qualitative) performance benchmarks per product and waste managementoperation in line with the performance matrix established under III/2.

CCAP has proposed to advise on the development of the reference levels (first and second bullets), and assist indeveloping the plan for utilizing new carbon market mechanisms. The technical assessments called for under thistask will be conducted entirely by the Consultant, and the Consultant will be responsible for the final deliverables.

2.2.14 Task III/4: Models and options for domestic (advance) funding

The objective of this measure is to screen existing measures of domestic funding appropriate for the NAMA andelaborate on new domestic funding options.

This task includes, but is not limited to:

Assessing the financial needs of the NAMA and recommending available domestic funding options tofund the NAMAs such as:

o user charges;o levies;o environmental bonds;

o environmental funds;o public loans;o public-private partnership incentives

Cooperating with MINAM and other instutitions such as COFIDE to set up financial plans for NAMAs.

The Consultant will undertake the first subtask (bullet 1), assessing the financial needs of the NAMA, includingdeveloping a realistic cost of each NAMA component, and factors that could substantially increase (or decrease)the costs.

CCAP has proposed to undertake the second subtask (bullet 2). To fulfil this subtask, CCAP plans to catalogueand assess existing and new options for raising funds needed to support the NAMA, and at the same time willbegin to identify areas that require or would substantially benefit from international financial, capacity andtechnical support. With cost data from the Consultants, CCAP plans to develop a report providing an overview of

available funds and a financial plan for the NAMA.


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2.2.15 Task III/5: Proposal on the international funding options (multilateral and/or bilateral);negotiation support to Peruvian Government; and distribution of international funds to localgovernments, installations and others

The objective of this task is to screen existing and emerging measures of international funding for the NAMA,public and private, and to help access the appropriate ones.


Applying relevant international crediting and trading standards to the NAMA developed in Tasks III/1 toIII/4;

Drafting a proposal on how to translate the results from the application of the performance matrix intointernationally creditable units, where applicable, taking account of the models developed in III/4;

Assisting the Peruvian Government with accessing bilateral and multilateral funding mechanisms and orinternational programmes including negotiation support;

Drafting a scheme for domestic fund distribution.

2.3 Deliverables

Table 2 lists the expected deliverables under the assignment.

Table 2: Deliverables

task Description Deliverables

0/1 Setting up of programme team and

kick off

Overview of the project team and plan to the

contracting authority (establishing the project team

will be part of the proposal phase) during a kick-off

meeting.

First meeting with representatives from Peru.

Quarterly status reports and meetings with relevant

parties.

0/2 Facilitation of Programme

Steering Committee

Project documents for public and non-public use to

inform relevant parties.

Bi-annual meetings with the Programme Steering

Group.

0/3 Facilitation of a broad consultation

process with central government

entities, local governments and the

private sector (for-profit and not-for-

profit) as well as international

donors

Overview of relevant stakeholders, to be presented

to the Programme Steering Committee, along with

options for stakeholder consultations.

Report with minutes and conclusions from

conducted stakeholder consultations.

0/4 Intermediate and final report An intermediate report that includes: outline of the

project team and plan with timeline and budget,

overview of stakeholders and a plan for further

stakeholder consultations.

Summary of conducted tasks, lessons learnt and

recommendations to the international debate.

A final report that includes: summary of conducted

tasks with reference to relevant documentation,

lessons learnt and recommendations to the

international debate with a view of replicability.


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I/1. Launch and implementation of

waste data survey

Survey report with evalutation.

I/2. Facilitation of Tier 3 (2006 IPCC

Guidelines) Emissions Calculation

Provide an overview of relevant waste types and

waste amounts,

Report with a greenhouse gas inventory for waste,

including a clean and filled out model with Excelcalculations according to the Tier 3 approach.

Report with country-specific default factors.

Deliver training materials and trainings for the use

of the model.

Country-specific emission factors and a model for

emissions from waste. Implement the model.

I/3. Establishment of Waste

Management Monitoring System

Overview of suggestions for improvement of data

gathering and data operations at SIGERSOL,

implementing data collection mechanisms and

propose and implement changes to SIGERSOL.

II/1. Definition of Business-as-usual

(BAU) calculation for future waste

streams and GHG emissions as per

solid waste classification and

treatment, taking into account

current and planned policies and

measures

Present a report that shows trends on waste

production, disposal and greenhouse gas emissions

from the waste sector, including an emissions

forecast up to 2020.

An Excel based system with calculation with the

BAU scenario and its emissions, clearly showing

the relevant parameters, allowing for establishing a

dynamic baseline, and identifying CDM activities to

avoid double-counitng of emission reductions..

II/2 Option assessment for domestic

mitigation identifying targets,

barriers (financial, institutional,

socio-economic, MRV,

enforcement) and opportunities

Report on mitigation options and an abatement cost

curve for the waste sector and an overview of

possibile policies that can be implemented to

stimulate the implementation of these abatement

options. The latter should be well-embedded in the

existing institutional structure, legal framework and

substantiated with an overview of financial needs

and possibile sources.

II/3 Assisting Peruvian Government

with formulating a National Waste

Management Strategy

Presentation on results from task II/2.

Minutes from the workshop and conclusions

III/1. Designing a NAMA fully based on

and integrated in the policies,

targets and institutionalconsiderations identified under the

National Waste Management

Strategy

CCAP has proposed to be responsible for the

deliverable, which is a detailed report describing a

NAMA option and faciliate participation andselection of an option by MINAM and the Nordic

countries.

III/2 Performance Metrics and MRV Monitoring Plan and User Guide for the NAMA and

the provision of trainings.

III/3 Reference levels and/or

benchmarks for crediting and

trading

Plan for utilising possible new carbon market

mechanisms for rewarding the NAMAs achieved

mitigation against the reference scenario and

monitored against a performance benchmark,

including key outstanding issues.

III/4 Models and options for domestic(advance) funding

Report with overview of available funds and afinancial plan for the NAMA.


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CCAP has proposed to be responsible for the part

on financial plan.

III/5 International funding options

(multilateral and/or bilateral);

negotiation support to Peruvian

Government; and distribution ofinternational funds to local

governments, installations and

others

Report on international financing mechanisms and

a scheme for domestic fund distribution and use of

internationally credible units based on the NAMA

developed in III/1 - III/4.

2.4 Estimation of timeline

Final TOR to provide an estimate timeline with milestone. Indiciative duration of the Pilot Programme is two (2)years.

Tender shall provide financial proposal covering all costs and expenses, accompanied by a detailed breakdown.

2.5 Team Composition

The Consultant should have demonstrable experience with

the waste sector in a developing country context,

the international negotiations on future mechanisms,

the Kyoto Protocol flexible mechanisms, in particluar with the CDM and with CDM wasteprojects.

The Consultant should have permanent local capacity so as to ensure continuous operations with and within thehost country. Local staff should have

a proven track record of waste policy assignments;

experience with the CDM; and

proven working relations with Government entities and the private sector in Peru thatincludes the Ministry of Environment (MINAM).

Thus, the assignment will be undertaken by a mixed team of international and local experts made available by theConsultant in a composition that fully enables satisfactorily execution of the assignment.

The profiles of the key experts are as follows:

Senior Team LeaderThe consultant will provide services of a senior team leader meeting the following qualifications:

Master Degree or equ. in relevant fields;

At least 15 years of professional experience of international cooperation;

Excellent team coordination skills and proven experience of team coordination in internationalprogrammes or projects.

Proven experience in project management for projects with a budget > 1 mill ;

Proven experience of project management in the field of climate change;

Knowledge and understanding of international climate negotiations

Regional experience or at least experience in similar regions and circumstances will be advantageous;

Fluency in English, working knowledge of Spanish would be an advantage.

Climate Policy SpecialistThe consultant will provide services of a climate policy expert meeting the following qualifications:

Master Degree or equ. in relevant fields;


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At least 10 years of professional experience in climate policy related work;

Knowledge and experience of the international climate negotiations under UNFCCC;

In depth knowledge of negotiations and regulation of MRV under UNFCCC;

Regional and local experience or at least experience in similar regions and circumstances will beadvantageous;


Senior Solid Waste Management SpecialistThe consultant will provide services of a senior solid waste management expert meeting the followingqualifications:

Master Degree or equ. in environmental, sanitary or civil engineering or other related fields;

At least 10 years of international professional experience in strategy/policy development, feasibilitystudies, planning of solid waste management systems and implementation hereof;

Proven experience in project management for project with a budget > 1 mill ;

Experience in training and capacity building;

Familiar with investment projects, environmental and social issues, financing structures, corporatearrangements and public education outreach;

Experience from participation within multidisciplinary expert teams in at least 3 international solid wastemanagement projects;



The senior solid waste management specialist will also act as team leader.

Solid Waste Collection and Final Disposal SpecialistThe consultant will provide services of a solid waste collection and final disposal, meeting the followingqualification requirements:

Master or Bachelor Degree or equ. in civil engineering, geology, environmental engineering or other

relevant fields; At least 5 years of professional experience in planning and implementation of solid waste collection and

transfer systems, recycling systems, design and rehabilitation of landfills and closure of dumpsites;

Experience in planning and conduction of waste characterization surveys;

Knowledge of Environmental Impact Assessments procedures;

Experience from participation within multidisciplinary expert teams in at least 3 international projects;

Experience from employment a in a solid waste management utility will be an advantage;


Fluency in English, knowledge of Spanish would be an advantage.

Senior Legal and Regulatory ExpertThe consultant will provide services of a legal and regulatory nature, meeting the following qualitifaction

requirements: Master or equ. in law;

At least 5 years of professional experience in international cooperation;

Recognized expertise in assisting policy makers in their choice of appropriate regulatory policies, laws

and instruments to support mitigation activities;

Experience within multidisciplinary expert teams in at least 3 international projects addressing institutionalstrengthening, sector restructuring and capacity building issues;

Track record in assisting Governments in the development of successful policies and matching

institutional framework for climate change consideration with the main focus on mitigation;

Sound understanding of identifying public policies that are necessary to support the adoption of such

measures by the private/public sectors;

Strong understanding of current climate change policies under discussion on the local as well as at theinternational level;


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Strong knowledge on what type of enabling legal environment is necessary to attract private investors;

Recognized expertise on contracts for infrastructure service transactions between national governments

and private sector participants;


Climate Finance ExpertThe Consultant will provide services of a finance-regulatory nature, meeting the following qualificationrequirements:

Master or equ.in financial management, business, economics or accounting;

At least 5 years of professional experience in financial/economic analysis;

Extensive knowledge and expertise climate change issues, policy, risk analysis, and scenario development,

as well as in the valuation of costs and benefits of climate change;

Experience within multidisciplinary expert teams in at least 3 international projects addressing institutional

strengthening and strategic planning issues;

A proven track record in performing risk analysis and investment due diligence for (co-)financing of mitigationprojects in developing countries;

Knowledge of climate finance instruments (including the carbon market) and their mechanisms; Knowledge of negotiations and regulation of Market Based Mechanisms under UNFCCC;

Overall understanding of the role of financial institutions in supporting mitigation investments;


Public Participation and Awareness ExpertThe consultant will provide services of a public participation and awareness expert meeting the followingqualification requirements:

Master or Bachelor Degree or equ. in communication, public relations, environmental management,environmental engineering or equivalent;

At least 5 years of relevant professional experience;

Experience from participation within multidisciplinary expert teams in at least 3 international projectsaddressing the solid waste management issues;

Experience in planning and implementation of demand assessment;

Experience in public awareness and participation;


Fluency in English, knowledge ofSpanish would be an advantage.

Modeling ExpertThe consultant will provide services related to set up models (Excel-based model):

Master or Bachelor Degree;

At least 5 years of relevant professional experience;

Knowledge in SIGERSOL or similar waste monitoring models; Experience in Waste Management Monitoring System;

Experience in financial models.

National Mitigation ExpertThe Consultant will undertake country-level review, assessment, data gathering, etc., and will lead and organizeall consultation and participation activities in Peru, meeting the following qualification requirements:

Strong understanding of the low-carbon and waste sector in Peru;

Proven track record of working in at least 3 national projects addressing institutional strengthening, sector

restructuring and capacity building issues, including on waste.


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National Legal ExpertThe Consultant will closely work with the international legal and regulatory expert

To act as a legal counterpart to the international consultants;

To be fully acquainted with the rule of law situation in Peru, with particular focus on environmental law,

Investment Law and institutional law.

The Consultant will supplement with international and local experts covering other fields and with otherqualifications and experiences, as needed, including local staff/organisation to carry out the wastecharacterization survey, the demand assessment and willingness to pay survey etc. for the satisfactory executionof the assignment within the available budget.

2.6 Host country missions

The Consultant is expected to visit once any of the Nordic capitals, once the 19th

Conference of the Parties to theUNFCCC (COP-19) and at a minimum six (6) times the host country for missions described below during thecontract period.

[Purpose]

Mission 1 Kick-off: Presentation of implementation plan; planning ofstakeholder consultations (Peru)

Mission 2 Stakeholder consultations on Pilot Programme; data-gatheringmission (Peru)

Mission 3 Presentation inventory and monitoring system; presentationNational Waste Strategy; presentation Intermediate Report (Peru)

Mission 4 Workshops on inventory, monitoring system and formulation ofNational Waste Strategy (includes second stakeholder

consultation) (Peru)

Mission 5 Workshops on NAMA proposal (third stakeholder consultations)(Peru)

Mission 6 Presentation of the Programme and NAMA proposal (COP 19)

Mission 7 Presentation final NAMA proposal and final report (Peru)

Mission 8 Presentation final NAMA proposal and final report (Nordic capital)

Draft ToR Peru

Documents

Transcript of Draft ToR Peru