PERU Experience with Economic Instruments (EI) in Mining Sector By Ing. Andrea Vásquez.
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Transcript of PERU Experience with Economic Instruments (EI) in Mining Sector By Ing. Andrea Vásquez.
PERUExperience with
Economic Instruments (EI) in Mining Sector
By Ing. Andrea Vásquez
Contents
• Environmental Effects of Mining – Peru• Policy Instruments of EM in Mining• Taxonomy of Policy Instruments• Peruvian Mining Legislation• Peruvian Instruments of EM in Mining• Experiences with EI in other Economies• Conclusions • References
Environmental Effects of Mining Peru
• Positive– Technological effects
• Significant change and investment in modern technology ( e.g. tailings and air pollution).
– Regulatory effects• Voluntary application of
environmental standards.
• Environmental improvement along with privatization processes.
Figure: Antamina
• Negative– Scale effects
• Questions of local sustainability and local development unresolved
• Territorial effects and water rights
• Lack of monitoring and control
Environmental Effects of Mining in Peru
Figure: Yanacocha
Map Map ofof
PrincipalPrincipalMineral Mineral
Production Production Units in Units in
PeruPeruSource: MINEM
Policy Instruments (PI) of Environmental Management (EM) in Mining
• Command and Control Policies• Technology Transfer, Information, and
Education Policies• Economic and Financial Policies• Financial Assurances (Hybrid of Economic
Instrument)
Taxonomy of Policy Instruments for Environmental Management
Source: Economic Comission for Latin America and the Caribbean - ECLAC (own representation)
Mine Law1981
UT General Mining Law1992
Investment Promotion LawMining Sector
1991
Framework Law Growth of PrivateInvestment - Environment
1991
OSINERG Law1996
OSINERGMIN Law2007
UT General Mining LawEnvironment
1993
Envirn. RegulationMining Activities
1998
MCLAir Emissions
1996
MCL Liquid Effluent
1996
UT General Mining LawFines Scale
Modified 2000
Mine Closure Law2003 (Regulation 2005)
Abandoned Polluted Areas Law2004 (Regulation 2005)
Peruvian Peruvian Mining Mining
Legislation Legislation
(Own representation)
Mine Law1981
UT General Mining Law1992
Investment Promotion LawMining Sector
1991
Framework Law Growth of PrivateInvestment - Environment
1991
OSINERG Law1996
OSINERGMIN Law2007
UT General Mining LawEnvironment
1993
Envirn. RegulationMining Activities
1998
MCLAir Emissions
1996
MCL Liquid Effluent
1996
UT General Mining LawFines Scale
Modified 2000
Mine Closure Law2003 (Regulation 2005)
Abandoned Polluted Areas Law2004 (Regulation 2005)
Peruvian Peruvian Intruments of Intruments of
Environmental Environmental Management in Management in Mining SectorMining Sector
(own representation)
Map of Non-Map of Non-Operative Operative
Mining UnitsMining Units
Peruvian Instruments of EM in Mining
• UT General Mining Law - Fine Scale– Non-compliance charges of regulations and
standards limits
• Mine Closure Law– Bonds performance– Fiscal incentives
• Abandoned Polluted Areas Law– Subsidies and Financing of Env. projects
Map of Map of Abandoned Abandoned
Polluted Polluted AreasAreas
Experience with Economic Instruments (EI) in other
Economies
Experience with Latin American Experience with Latin American countriescountries
Environmental Policies were implemented with evidence of significant pollution reductions
Environmental Policies were implemented but no data shows evidence of efficiency
Environmental Policies were implemented without success on pollution reduction
(own representation)
Experience with OECD countriesExperience with OECD countries
OECD: ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT (own represtentation)
Environmental Policies were implemented with evidence of significant pollution reductions
Environmental Policies were implemented but no data shows evidence of efficiency
Environmental Policies were implemented without success on pollution reduction
Experience with EECCA countriesExperience with EECCA countries
EECCA: EASTERN EUROPE, CAUCASUS AND CENTRAL ASIA (own representation)
Environmental Policies were implemented with evidence of significant pollution reductions
Environmental Policies were implemented but no data shows evidence of efficiency
Environmental Policies were implemented without success on pollution reduction
Experience with ASIA countriesExperience with ASIA countries
Environmental Policies were implemented with evidence of significant pollution reductions
Environmental Policies were implemented but no data shows evidence of efficiency
Environmental Policies were implemented without success on pollution reduction
(own representation)
Conclusions & Recommendations
• Peru has very little experience with the use of economic instruments as a tool for environmental management.
• The audit is only through systems of command and control.• The instruments are used to promote positive externalities
and not to reduce the negatives.• The government may charge fees for emissions or effluents
based on volume and pollutant loads. This would place the companies "cleaner" in a competitive advantage with respect to companies that pollute more.
• The government of Peru can put pressure on the industry to prove that they are complying with environmental limits through independent monitoring and auditing the plants.
Thank you for your attention
References• Environmental Effects of FDI in the Mining Sector
http://www.oecd.org/LongAbstract/0,3425,en_2649_34313_1833847_1_1_1_1,00.html; 21.01.08• Energy and Mining Ministry of Peru• DS-059-2005 Statements for Abandoned Polluted Areas• DS 033-2005-EM Statements for Mining Closures• DS 016-93-EM Unifying Text of General Mining Law• Environmental Policy in Mining, Warhurst, A. , Noronha, L. (2000)• CEPAL – Aplicación de instrumentos económicos en la gestión ambiental en America Latina y el
Caribe: desafios y factores condicionantes. http://www.eclac.cl/dmaah/noticias/proyectos/1/7451/LCL1488.pdf; 20.01.08
• www.economicinstruments.com • Economic Instruments for Pollution Control and Natural Resources Management in OECD
Countries http://www.oecd.org/LongAbstract/0,3425,en_2649_34295_2405107_1_1_1_37427,00.html; 20.01.08
• The use of Economic Instruments in EECCA Countries http://www.oecd.org/dataoecd/37/18/26732337.pdf; 20.01.08
• Applying Economic Instruments in Developing Counries http://www.crdi.ca/uploads/user-S/10536145810ACF2AE.pdf; 20.01.08
• Cepal EI Peru http://www.eclac.cl/dmaah/noticias/proyectos/1/7451/peru.pdf