As REDD+ moves to its results-based payments phase in a context of increasing net-zero pledges from governments and companies, different countries are implementing laws and regulations to frame how they will be compensated for emission reductions through carbon markets.
In Peru, one of REDD+’s early movers, these developments include the proposed guidelines for the National Registry of Mitigation Actions (RENAMI in Spanish) and for the nesting process for existing early REDD+ initiatives.
To participate in carbon markets, initiatives will be expected to register in RENAMI, administered by the Ministry of the Environment (MINAM) – Peru’s national REDD+ authority – which will verify, among other things, that the proponents hold carbon rights, are using an official quota of Peru’s forest emissions reference levels, and are complying with social safeguards.
However, some regulatory uncertainties remain, such as the legal validity of emission reductions from initiatives that fail to register in RENAMI, or the extent of Peru’s National Environmental Fund (PROFONANPE in Spanish) mandate to receive, manage and distribute REDD+ results-based payments.
Other countries will benefit from Peru’s experience developing new regulations, technical rules and procedures for REDD+ carbon markets, including experiences with multistakeholder consultation processes that allow for feedback before the rules are finalized and implemented.
In this Infobrief we take stock of Peru’s regulatory framework to understand how public and private actors may sell emission reductions to carbon markets, and review draft regulations under public consultation to assess where government rules are heading. Once implemented, future research would be needed to assess the effectiveness of these regulations in the market and on the ground.