Creating an innovation lab to improve environmental protection in Peru

Environmental challenges in Peru carry economic implications with degradation estimated to cost between 3.5% and 5% of the country’s GDP annually (World Bank). Established in 2008, OEFA faces significant resource constraints that limit its capacity to enforce environmental regulations effectively. A recent OECD assessment in 2020 highlighted the need for stronger regulations based on data and evidence emphasizing the need for more accountability and transparency in regulatory practices. Currently, a team of 70 legal analysts reviews reports from thousands of environmental inspections while only a dozen inspectors manage over 3,000 municipal waste sites.

In 2018, OEFA created a working group to explore innovative solutions aimed at improving enforcement efficiency. Some interventions such as adjustments in communication strategies showed positive results and led to broader implementation. However, disruptions linked to political shifts, the COVID-19 pandemic and staff turnover led to the loss of key expertise limiting long-term impact. This context underscores the need for a more structured evidence-based approach to strengthen OEFA’s capacity and ensure lasting improvements in environmental oversight.

The innovation lab focuses on creating practical tools and strategies to improve environmental enforcement in Peru.

Key areas of focus include:

• Strengthening internal processes: The lab will introduce structured workflows and data practices to support lasting improvements in OEFA’s operations.
• Expanding expertise: The staff will receive training and resources to strengthen their technical expertise and improve long-term performance.
• Using satellite imagery: The lab will help identify environmental risks in waste dumps early improving safety for nearby communities.
• Promoting risk management tools: A digital platform will assist businesses in detecting hazards like fires and gas leaks especially in industrial areas near residential neighborhoods.

This initiative offers a structured approach to improving environmental oversight through practical and adaptable solutions for Peru's context.

The project aims to establish the innovation lab as a permanent unit within OEFA. The innovation lab should improve how the organization monitors and addresses environmental challenges by introducing clearer processes and practical tools. The project will focus on equipping staff with the skills needed to identify and respond to environmental risks effectively while developing operational tools such as manual and process guidelines to support practices that are more consistent. The lab will introduce clearer ways for the organization to collect, manage and use data to support decision-making. By the end of the project, OEFA will apply these methods regularly leading to stronger environmental oversight and better protection for communities.