VZCZCXRO8855
PP RUEHAO RUEHCD RUEHGA RUEHGD RUEHGR RUEHHA RUEHHO RUEHMC RUEHNG
RUEHNL RUEHQU RUEHRD RUEHRG RUEHRS RUEHTM RUEHVC
DE RUEHPE #0417/01 0671655
ZNR UUUUU ZZH
P 071655Z MAR 08
FM AMEMBASSY LIMA
TO RUEHC/SECSTATE WASHDC PRIORITY 8133
INFO RUEHWH/WESTERN HEMISPHERIC AFFAIRS DIPL POSTS
RUEHRC/DEPT OF AGRICULTURE WASHINGTON DC
RHEHAAA/NATIONAL SECURITY COUNCIL WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RHMFIUU/DEPT OF ENERGY WASHINGTON DC
RUEHC/DEPT OF INTERIOR WASHINGTON DC
RUEAWJA/DEPT OF JUSTICE WASHINGTON DC
RUEHLMC/MILLENNIUM CHALLENGE CORP

UNCLAS SECTION 01 OF 03 LIMA 000417 
 
SIPDIS 
 
SIPDIS 
SENSITIVE 
 
USTR FOR MBURR, BHARMAN & MCARRILLO 
BRASILIA FOR HUB ABRAGHETTA 
 
E.O. 12958: N/A 
TAGS: SENV ECON ETRD ENRG EMIN PGOV USTR PE
SUBJECT: DESIGNING AN ENVIRONMENT MINISTRY 
 
REF: 07 LIMA 3887 
 
LIMA 00000417  001.2 OF 003 
 
 
SENSITIVE BUT UNCLASSIFIED, HANDLE ACCORDINGLY 
 
SUMMARY 
------- 
¶1. (SBU)  Instructed by President Garcia, a commission of 
experts presented draft legislation on March 3 establishing 
an Environment Ministry in Peru and outlining its structure 
and responsibilities.  After discussion and tweaking by the 
Council of Ministers, the GOP plans on creating the Ministry 
using the temporary legislative powers delegated by the 
Congress for U.S.-Peru Trade Promotion Agreement (PTPA) 
implementation (reftel).  Responding to long-standing 
criticisms, the proposed Ministry would:  have clout and 
authority over other ministries on environmental matters, 
have improved enforcement and sanctioning authority, approve 
Strategic Environmental Studies as well as Environmental 
Impact Assessments for large-scale or environmentally 
sensitive projects, issue binding opinions on investment 
projects that could affect Natural Protected Areas before 
they move forward, and provide opportunities for civil 
society involvement.  The Ministry will not assume productive 
responsibilities (e.g. timber concessions), and other 
ministries will still maintain sector-specific environmental 
offices that will follow the new Ministry's policies.  End 
Summary. 
 
BACKGROUND: EXECUTIVE TO ESTABLISH NEW MINISTRY 
--------------------------------------------- -- 
¶2. (SBU)  Surprising even senior GOP officials, President 
Garcia announced on December 20 that he would establish a 
Ministry of Environmental Affairs.  Garcia asked renowned 
ecologist Antonio Brack to lead a commission to propose the 
structure and functions of the new ministry.  Brack's 
commission, which included environmental officials, NGOs and 
private sector representatives, was established February 1 
and presented its proposal to the GOP on March 3.  The 
proposal is scheduled to be discussed by the Council of 
Ministers on March 12, and the Executive plans on using the 
legislative powers delegated by the Congress to implement the 
U.S.-Peru Trade Promotion Agreement (PTPA, see reftel) to 
establish the new ministry without need for a Congressional 
vote (these powers expire June 28).  Post has obtained a copy 
of the Brack Commission's 15-page proposal, and below are the 
structural and functional highlights most relevant to U.S. 
interests. 
 
PROPOSED MINISTRY STRUCTURE 
--------------------------- 
¶3. (U)  The proposal includes a Vice Ministry for the 
Strategic Development of Natural Resources, a Vice Ministry 
for Environmental Management, a Trans-Sectoral Environmental 
Committee, an Environmental Coordination Council, and an 
Environmental Dispute Resolution Tribunal.  The Ministry's 
internal administrative bodies would include a Regional 
Coordination and Socio-Environmental Issues Office and a 
Negotiation and International Cooperation Office. 
 
¶4. (U)  The Vice Ministry for the Strategic Development of 
Natural Resources would include the following directorates: 
Biodiversity and Coastal Marine Resources; Forest Patrimony 
and Wildlife; Climate Change; and Environmental Land Planning 
and Soils.  The Vice Ministry for Environmental Management 
would include the following directorates:  Environmental 
Policies, Norms and Valuation; Management Instruments; 
Environmental Science, Technology and Innovation; 
Environmental Education, Culture and Citizenship; and 
Environmental Quality. 
 
PRE-EXISTING & NEW ENTITIES UNDER MINISTRY 
------------------------------------------ 
¶5. (U)  The existing National Environmental Commission 
(CONAM) would be fused entirely into the Ministry, along with 
large portions of the Ministry of Agriculture's National 
Institute for Natural Resources (INRENA) and the Ministry of 
Health's Environmental Health Directorate (DIGESA).  The 
following existing GOP entities would be moved under the new 
Ministry with varying degrees of autonomy:  the National 
Meteorological and Hydrological Service (SENAMHI, currently 
part of Defense), the Geophysical Institute of Peru (IGP, 
 
LIMA 00000417  002.2 OF 003 
 
 
currently part of Education), and the Peruvian Amazon 
Research Institute (IIAP).  A new supervisory entity, the 
Environmental Supervision and Enforcement Organism (OSFA), 
the National Authority for the Management of Water Resources 
and Basins, and the National Natural Protected Areas Service 
(SERNANP) would be established. 
 
PROPOSED MINISTRY FUNCTIONS 
--------------------------- 
¶6. (U)  The Ministry's overall mission would be to establish, 
execute, supervise, and evaluate national environmental 
policy applicable to all levels of government.  Its scope 
includes enforcement, control, and the imposition of 
sanctions.  Objectives would include: 
-- promoting the sustainable use of natural resources; 
-- conserving biodiversity and natural protected areas; 
-- the sustainable development of the Amazon; 
-- preventing the degradation of the environment and of 
natural resources, and reverting negative processes that 
affect them; 
-- guaranteeing citizen participation in the decision-making 
process for sustainable development; 
-- contributing to Peru's competitiveness through efficient 
environmental performance; and 
-- incorporating sustainable development principles into 
national policies and programs. 
 
¶7. (U)  The proposed specific and exclusive functions of the 
Ministry include the following items of particular US 
interest: 
-- direct the process for elaborating and revising 
Environmental Quality Standards and Maximum Permissible 
Limits; 
-- direct a National System of Environmental Impact 
Assessments (EIAs) and approve all Strategic Environmental 
Studies as well as EIAs for large-scale or environmentally 
sensitive projects; 
-- direct a National Environmental Information System; 
-- establish the criteria and procedures for environmental 
decontamination and recovery plans; 
-- propose, approve, supervise and evaluate Natural Protected 
Areas (NPAs) policies; 
-- emit binding technical opinions on investment projects 
that could affect NPAs and their buffer zones before such 
investments move forward; 
-- preside committees related to implementation of and 
compliance with international environmental agreements; and 
-- supervise and sanction all levels of government with 
regards to solid waste, liquid effluents and air pollution. 
 
FORESTS, INDUSTRY IMPACTS & STANDARDS 
------------------------------------- 
¶8. (U)  The following two directorates will be key for PTPA 
implementation.  Forest Patrimony and Wildlife would be 
responsible for the strategic development of forest 
patrimony, including the ordering and the criteria for 
protection and recovery of forests.  Environmental Policies, 
Norms and Valuation would be responsible for reviewing 
Strategic Environmental Studies, approving EIAs for large or 
environmentally sensitive projects, and elaborating and 
reviewing Environmental Quality Standards and Maximum 
Permissible Limits. 
 
INCREASED CIVIL SOCIETY PARTICIPATION 
------------------------------------- 
¶9. (U)  The proposal stresses increasing civil society 
participation and public awareness.  The permanent, 10-member 
Environmental Coordination Council, proposed by NGOs and 
adopted by the Brack Commission, would promote dialogue and 
coordination on environmental issues among business 
associations, civil society and the government.  It would be 
presided by the Minister and would include one member elected 
from within each of the following groups:  business 
associations, environmental NGOs, Amazonian peoples 
organizations, rural organizations, the National Assembly of 
(university) Rectors, professional associations, regional 
governments, local governments, and public environmental 
entities.  The Directive Council of the Natural Protected 
Areas Fund (PROFONANPE) would be presided by the Minister and 
include the following seven members:  the head of SERNANP, a 
representative from the Economy and Finance Ministry (MEF), a 
 
LIMA 00000417  003.2 OF 003 
 
 
representative from regional governments, three Peruvian 
environmental NGOs with NPA experience, and one international 
assistance or finance entity (invited by the Ministry). 
 
STRONGER ENFORCEMENT & NPA PROTECTION 
------------------------------------- 
¶10. (U)  The new Environmental Supervision and Enforcement 
Organism (OSFA) would enforce, supervise, control, and 
sanction corresponding environmental matters.  This oversight 
would include compliance with Strategic Environmental 
Studies, EIAs for large or environmentally sensitive 
projects, and environmental norms and standards.  OSFA would 
refer penal cases to the Public Ministry.  Like other 
ministries, the Environment Ministry would have its own 
Public Prosecutor's office.  Among its duties, the new 
National Natural Protected Areas Service (SERNANP) would have 
enforcement and sanctioning authority regarding Natural 
Protected Areas.  SERNANP would also be responsible for 
emitting binding technical opinions on investment projects 
that could affect National Protected Areas and their buffer 
zones BEFORE such investments move forward. 
 
PRODUCTIVE ASPECTS STAY WITH EXISTING MINISTRIES 
--------------------------------------------- --- 
¶11. (SBU)  As Brack previewed on January 30 to a USG 
interagency team, the new Ministry will not assume productive 
responsibilities.  For example, the commercial aspects of 
timber will remain with the Ministry of Agriculture (which is 
being reorganized this month), but the Environment Ministry 
will take over the conservation and protected area aspects. 
Similarly, Brack said that the environmental offices in other 
ministries would not be closed, but the Environment Ministry 
would oversee their activities.  He added that elevating 
environmental issues to the ministry level is a drastic 
improvement over the current system that includes an 
Environment Commission (CONAM) that does not have a seat at 
the Council of Ministers, has no authority over other 
ministries, and has no enforcement capacity. 
 
COMMENT 
------- 
¶12. (SBU)  President Garcia's decision to create an 
Environment Ministry was a shrewd political move that 
demonstrates his government's commitment to environmental 
issues and addresses long-standing criticisms of government 
policies and enforcement.  The stringent commitments of the 
U.S.-Peru Trade Promotion Agreement (PTPA), as well as the 
international attention accompanying large-scale investment 
projects (such as Peru LNG), helped Garcia reach his 
decision.  The proposal addresses many of the biggest 
criticisms of Peruvian environmental framework:  it 
establishes an entity with authority over other ministries, 
it improves enforcement and sanctioning authority, it reduces 
the conflict of interest inherent in productive ministries 
establishing and enforcing their own environmental standards, 
it increases opportunities for civil society involvement, it 
improves coordination with regional and local governments, 
and it merges disparate offices to provide a centralized 
location for the public (and foreign governments).  In 
addition to an Environment Ministry led by a qualified 
minister, the GOP must improve the productive side of Peru's 
environmental deficiencies to ensure sustainable development. 
NEALON