10 December 2014: A joint study by the Peruvian Government, the Economic Commission for Latin America and the Caribbean (ECLAC) and the Inter-American Development Bank (IDB) predicts that the fishing, agriculture and livestock in the high Andes sectors will be the most affected by climate change in Peru in the coming years.

The study, titled ‘The Economics of Climate Change in Peru,’ also acknowledges that hydroelectric power, mining, tourism, health and infrastructure could experience negative impacts. The report, which was presented during the UN Climate Change Conference in Lima, Peru, which met from 1-12 December 2014, illustrates that, by 2100, projected impacts would result in significant economic losses.

More specifically, the study explains that, inter alia: the Peruvian fishing sector would suffer a reduction in anchovies, affecting the production of fishmeal; the expansion of agricultural areas will mean less water available for hydroelectric generation; the agricultural sector could face losses from reduced productivity in crops, such as potatoes, rice, sugar cane, banana and starchy corn; and livestock production in the high Andes could lose up to 90% of the sector’s GDP due to reduced pasturelands and an expanded agricultural sector. In addition, the increased number of extreme climate events could lead to: a decrease in the number of tourists that visit Machu Picchu, with estimated losses by 2100 of around 15%-30% of the sector’s GDP; and higher costs in repair and maintainance of roadway infrastructure due to more frequent roadway flooding.

The study underscores that Peru is highly vulnerable to climate change because it has seven of the nine vulnerability characteristics identified in the UNFCCC: low coastal areas; arid and semi-arid areas; zones that are susceptible to deforestation or erosion, natural disasters, drought and desertification; highly polluted urban areas; and fragile ecosystems. The report: urges taking action as soon as possible to reduce vulnerabilities; underscores the importance of the timely design of adaptation strategies, policies and programmes; and recommends expanding the information available, analyzing other sectors and studying social implications in order to design policies for sustainable development. [ECLAC Press Release] [Publication: The Economics of Climate Change in Peru] [IISD RS Coverage of Lima Climate Change Conference]