Overall NAMA preparation and implementation is estimated at a cost of approximately USD 6.2 billion. The lion’s share of the preparation and implementation costs arises from the metro and BRT lines to be constructed within the Lima Metropolitan Region (approximately USD 5.9 billion).

The Government of Peru has allocated significant amounts to the policy matrix, mainly to the integrated mass transportation system in Lima (roughly USD 4.2 billion). Several development banks (CAF, IADB, KfW) and technical cooperation agencies have committed considerable resources (USD 700 million for Metro Line 2). The NAMA receives additional funds from the NAMA Facility[1] in the form of a NAMA Support Project (grant of EUR 5 million plus low interest loans of EUR 40 million, including a grant element of EUR 4 million). The German Government financed programme IKLU/DKTI[2] has further approved financial resources for the Set Up of the National Programme for Sustainable Urban Transport ( EUR 60 million).

Capacity Building Support is included in overall technical support. It will be defined after the elaboration of a capacity development strategy at the beginning of 2016. Further support is provided by WRI LEDS GP.

For the implementation phase of the matrix (2016 -2019), the mitigation effect accounts for 1.1 - 2.03 MtCO₂, given the fact that most of the measures will contribute to the long-term effect, rather than have an immediate direct emission reduction effect.

It is important to note, that Mitigation Area 6: the National Programme for Sustainable Urban Transport is not considered in the estimation, as it was not defined with abundant detail at the time of the estimation. As this measure is meant to transfer funding and capacities to medium-sized cities, it can be expected that this measure will have a significant additional mitigation impact.

According to the Peruvian pledges in the INDCs, the country targets a total reduction of 89 MtCO₂ until 2030. The NAMA will contribute considerably to reach this target.

Socio-economic

• High decrease in travel times and associated economic benefits by the building of a metro, optimized routes and bus sizes, improved intermodality, urban mobility planning.
• Reduced life-cycle costs of vehicle fleet by increase of vehicle efficiency.
• Reduced societal health costs associated with reduced stress levels from traffic noise/air pollution.
• Reduced casualties and injuries by accidents by reduction in traffic and modernized fleet.
• Increased competitiveness of cities as attractive places for business/families.
• Social inclusion of people of vulnerable groups by provision of affordable public transport, well-designed non-motorized transport, and connection of suburbs and the city center.
• Increased employment and local businesses due to infrastructure investment.

Environmental

• Reduced traffic related air pollution (NOx, SOx and particulate matter) by stringent vehicle and fuel standards.
• Rational use of scarce resources, e.g. fossil fuels by stringent vehicle and fuel standards.

The INDC pledges a reduction of GHG of 30% in 2030 compared to a Business-As-Usual scenario (equivalent to accumulated reductions of 89 MtCO2, until 2030), of which 20% will be reached with own resources and 10% are made conditional to financial support by the international donor community.  The programme to reach this target consists of an overall of 58 measures, of which 50% have already been initiated by the Government and 50% have been proposed and are perceived realistic (MINAM, 2015). The main measures planned in the transport sector are reflected on the measures contained in the NAMA.