Green investment could increase Lima-Callao’s GDP by 7%, according to a British-Peruvian study by University of Leeds (UK) and PUCP and UNALM (Peru).
On Tuesday 3 June, the British Embassy in Lima hosted an event to launch “The Economy of Low Carbon Cities Resilient to Climate Change: Lima-Callao, Peru” study before a full auditorium which included the national Peruvian press. The study is a joint collaboration of three universities: Pontificia Universidad Católica and Universidad Nacional Agraria La Molina (Peru) and University of Leeds (UK).
This study presents investments totalling US$ 5 billion in different sectors in Lima-Callao, which would increase their combined GDP by 7% and would reduce greenhouse gas emissions 17% by 2030. Among investment options, the transport sector would deliver 36% of the identified GDP increase for low carbon investments, including through replacing combis (small vans) with buses and investment in traffic management, faster bus transportation, congestion charges, etc. An additional campaign could also promote working from home –teleworking– to reduce traffic jams.
Other identified sectors with possibilities for investment are industry (27% of potential), households (13%), commerce (13%), water supply (9%) and power supply. Currently, some 8% of all income from Lima-Callao is used in energy, water and waste. Proposed cost effective investments would repay the initial costs within 2.8 years and would generate annual savings during their lifetime.
This study also warns about the danger of inaction: without concrete measures, energy consumption would increase 79% in Lima-Callao by 2030, from US$ 4.5 billion in billing to US$ 11.2 billion, and carbon emissions increase 81% between 2013 and 2030. Jorge von Wedemeyer, President the Lima Chamber of Commerce, delivered the opening words at the event, followed by James Dauris, British Ambassador in Lima; Fidel Jaramillo, representative for the Inter-American Development Bank (IDB) and Augusto Castro, director of Science, Nature, Land and Renewable Energies at the INTE institute, Pontificia Universidad Católica del Perú (PUCP).
A group of representatives from the team of researchers responsible for the study presented it: Andrew Gouldson and Faye McAnulla from the University of Leeds, and Sofía Castro from PUCP with Cayo Ramos from Universidad Agraria La Molina, Peru. Guest panel included Gabriel Quijandría, Vice Minister of Natural Resources; Anna Zuchetti, President of the Parks and Gardens Authority at the Municipality of Lima; Javier lllescas, Executive Director at ProInversión; Carlos Ludeña, Climate Change Specialist at IDB, and Patricia Iturregui, Climate Security and Energy Adviser at the British Embassy in Lima.
You may review the experts presentation (Spanish only) below: