10.17.16 Can Latin America Transition to Low Carbon Energy?

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Can Latin America Transition to Low Carbon Energy? 10.17.16

Transcript of 10.17.16 Can Latin America Transition to Low Carbon Energy?

Page 1: 10.17.16 Can Latin America Transition to Low Carbon Energy?

Can Latin America Transition to Low Carbon Energy?

10.17.16

Page 2: 10.17.16 Can Latin America Transition to Low Carbon Energy?

Scenarios to reach 2C globally

Source: World Resources Institute, 2015,

Climate Analysis Indicators Tool

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2013 2015 2020 2025 2030 2035 2040 2045 2050

GtC

O2

OTHER TRANSFORMATIONS 6% BUILDINGS 14%

INDUSTRY 23% TRANSPORT 18%

POWER GENERATION 39% 2DS TRAJECTORY

6DS TRAJECTORY

TRANSPORT

POWER GENERATION

*NOTE: Sector percentages represent cumulative contributions to

emissions reductions until 2050 on a 2 degrees warming trajectory

vs a 6 degrees warming trajectory.

The role of transportation and power generation in

CO2 emissions reductions, 2013-2050

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Latin America’s contribution to climate

change mitigation In 2013, Latin America and the Caribbean produced 5.25% of world

emissions and accounted for 8.29% of world GDP.

The region produced 3.039 metric tons per capita of CO2 emissions,

compared to a global average of 4.996 metric tons per capita.

Global Carbon Dioxide Emissions by Region (million

metric tons), 1990-2012

Source: US Environmental Protection Agency,

International Energy Agency Energy Technology

Perspectives (2016)

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Latin America’s commitments in Paris

Evaluation of INDCs/NDCs, according to the Climate Action Tracker:

Inadequate: If all

governments put forward

inadequate positions warming

likely to exceed 3–4°C.

Argentina

Chile

Sufficient: Fully

consistent with below

2°C limit.

Role Model: More than

consistent with below

2°C limit. Currently no

countries in the world in

this category.

Medium: Not consistent with limiting

warming below 2°C as it would

require many other countries to

make a comparably greater effort

and much deeper reductions.

Brazil

Mexico

Peru Costa Rica

Source: Climate Action Tracker

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Latin America’s CO2 emissions per

country

Country Contributions to Total LAC Emissions, 2013

Source: The World Bank

26.8%

26.0% 10.1%

9.9%

4.8%

4.4%

3.0%

2.5%

2.3% 1.2%

1.1% 8.1%

Brazil

Mexico

Argentina

Venezuela

Colombia

Chile

Peru

Trinidad and Tobago

Ecuador

Dominican Republic

Bolivia

Other

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Latin America’s CO2 emissions per

sector/source

Regional BAU Emissions Trajectory by Sector, 2010-2050

Source: GEA Scenarios Database,

International Institute for Applied Systems

Analysis (IIASA)

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Emissions reduction scenario for LatAm

Aggressive I+ Pathway, 2010-2050

Source: GEA Scenarios Database,

International Institute for Applied Systems

Analysis (IIASA)

• Stop net deforestation by

2020, no net emissions

from land-use change by

2030, net accumulation of

carbon sinks to 2050

• 50% cut in ag emissions

• Abate final energy

demand by 40% through

bulk improvements in

energy efficiency

• Reverse carbonization of

power matrix to achieve

90% zero-carbon

installed capacity

• Widespread electrification

of transport sector.

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Electricity in Latin America

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

MEXICO COLOMBIA BRAZIL CHILE

SOLAR

WIND

GEOTHERMAL

BIOMASS & WASTE

SMALL HYDROELECTRIC

NUCLEAR

LARGE HYDROELECTRIC

NATURAL GAS

COAL

OIL & DIESEL

Installed Capacity by Generation Source, 2015

Source: Bloomberg

Climatescope 2015

Latin America’s per capita emissions are low compared to other regions because of heavy reliance on hydropower.

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Electricity demand growth

Source: Enerdata Yearbook, EIA

Annual Energy Outlook 2014

LatAm electricity consumption, GDP, 1990-2015

Unlike in developed countries, where electricity demand growth is

decoupled from economic growth, in LatAm, electricity demand growth

matches or surpasses GDP growth, due to expanding electrification,

inadequate EE measures and demand from energy-intensive industries.

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600

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1,000

1,200

1,400Latin America domesticelectricity consumption (TWh)

Latin America GDP (trillionsUSD)

US electricity use, GDP, 1950-2040

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Growth in emissions from electricity

25%

8%

20%

3% 4%

33%

4% 3% 0%

2000

16%

9%

30% 7% 4%

28%

4%

0%

2%

2012

OIL PRODUCTS

COAL

NATURAL GAS

BIOFUELS & WASTE

GEOTHERMAL

HYDRO

NUCLEAR

SOLAR & WIND

IMPORTS

Electricity Matrix in Latin America, 2000, 2012

Source: Inter-American

Development Bank Energy

Database

Hydropower has become less reliable in Latin America.

Several countries are expanding natural gas-fired power to meet

demand growth.

This would lock in long-term fossil fuels. Though it can reduce short

term emissions, it becomes more difficult to reach long-term goals.

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Transport in Latin America

Oil Consumption in Latin America and the Caribbean

(thousand b/d), 2003-2013

Sources: BP Statistical Review

of World Energy 2013 and

Joint Organizations Data

Initiative (JODI) Data

Similarly, in the transport sector, many governments are prioritizing

NGVs and fuel efficiency over EVs. This will reduce short-term

emissions, but lock in fossil-fuel transport for decades. To meet long

term climate goals, countries need to move to zero emissions and build

new infrastructure systems.

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2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

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Recommendations to Promote EVs

• Expand pilot programs for high-use electric vehicles, which have

significant environmental benefits while demonstrating the

effectiveness of EV technology to build public confidence.

• Introduce stronger financial incentives, such as tax reductions for

EVs and home charging infrastructure purchases, to reduce high

up-front costs and make EVs more competitive with conventional

vehicles.

• Increase non-financial incentives, such as access to preferential

parking and driving lanes, and strengthen fuel economy standards

to give car manufacturers incentives to invest in EV technology.

• Include EVs in broader long-term plans for the energy and transport

sectors and introduce EV targets in climate change mitigation goals.

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Thank you.

Lisa Viscidi

Inter-American Dialogue

[email protected]

@lviscidi

+1 202-463-2571