About 99% of urban solid waste in Peru is buried in landfills. 57% of this waste is organic, which decomposes at final disposal sites, and emits methane gas into the atmosphere. This corresponds to around 66% of the greenhouse gas (GHG) emissions from the waste sector, and represents more than 36% of the country's methane emissions, which is projected to keep growing. Similarly, most of the industrial organic waste generated in agroindustry, food processing, livestock operations, and vegetable and fruit markets is also being disposed in landfills, with the same result.
Progress towards increased circularity and waste valorisation is currently limited by several barriers: (1) policies and regulations do not effectively prioritize and promote valorisation of organic waste; (2) there is a lack of experience and knowledge about organic waste treatment technologies in both the public and private sector; and (3) a lack of specific financial instruments that could attract project developers.
The NSP’s overarching goal is to accelerate the implementation of organic waste treatment projects and landfill gas capture, contributing to Peru’s NDC, and providing important sustainable development co-benefits in the context of Covid-19 recovery, such as reduced pollution, social inclusion, and green job creation. Peru’s NDC considers the waste sector a priority, and this NSP will directly support all the measures included therein.
To overcome barriers in the waste sector, the NSP intends to:
- Promote policy reforms: improving waste tariff collection schemes, implementing source separation, streamlining permitting processes, and developing a long-term national organic waste strategy with concrete targets and measures,
- Increase local capacities: implement outreach and awareness campaigns, and develop capacities about technical and financial implementing schemes for organic waste treatment technologies among public and private actors and
- Set up financial instruments: concessional loans, subsidy and guarantees through a Financing Support Facility (FSF).
With the proposed activities, the NSP will support Peru’s transition from a linear organic waste management paradigm towards a circular one. It will do this by increasing the incorporation of treatments such as composting and anaerobic digestion that reduce environmental impacts, limit emissions, and prolong the life of existing landfills. It will also reduce substantive methane emissions by promoting landfill gas-to-energy technologies, and mitigate the consequences of not diverting organic waste up to now. Over the course of its implementation, the NSP thereby expects to reduce around 1 million tCO2e.
It is expected that the NSP will directly support the development of a portfolio of approximately 22 projects. These include one clean electricity-generating landfill gas capture project, six anaerobic digestion projects, and 15 composting projects. Additionally, the NSP will create a portfolio of 40 projects with pre-feasibility studies in order to increase replicability of the NSPs model, and to attract further investment.