Unlocking Peru's Potential for Carbon Neutrality: Overcoming Challenges and Seizing Opportunities
Year: 2026
Type: article
Abstract: Peru's transition towards carbon neutrality is both a critical environmental need and a complex challenge. As one of the most climate-vulnerable countries in Latin America, Peru faces mounting pressure to reduce greenhouse gas (GHG) emissions while maintaining economic growth and energy security. This study examines the current state of Peru's energy transition and analyzes the principal sources of national emissions, with particular emphasis on the land-use, land-use change, and forestry (LULUCF) sector, which is the country's largest contributor to GHG emissions. The research is based on a comprehensive review of national climate policies, nationally determined contributions (NDCs), government strategies, and institutional reports from international organizations on decarbonization. The study evaluates the main mitigation pathways proposed to achieve Peru's climate targets, including expanding renewable energy technologies, electrifying the transport sector, improving energy efficiency, and enhancing land-use management practices. Particular attention is given to the role of climate finance and institutional coordination, drawing on recommendations from the Inter-American Development Bank (IDB), the Ministry of Environment (MINAM), and other stakeholders involved in Peru's low-carbon transition. The analysis demonstrates that, although Peru possesses significant renewable energy potential, mainly wind and solar, and strategic opportunities for sustainable growth, achieving a 40% reduction in GHG emissions by 2030, over its 60 mitigation measures, and carbon neutrality by 2050 will require substantial investment, technological innovation, stronger governance frameworks, and long-term policy stability. The findings highlight that the success of Peru's decarbonization pathway will depend not only on technological deployment but also on effective policy implementation, cross-sectoral collaboration, and sustained financial support. This study contributes to the understanding of Peru's energy transition challenges and provides insights for strengthening climate policy and advancing a resilient, low-carbon future.
Authors: Aaron Colina-Calvo, Hugo Vargas
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W7204268488