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Climate Action 2009-2010

POLICY Photo 1. Rural

POLICY Photo 1. Rural Energisation in San Antonio de Lipez, Bolivia. Sustainable development in Latin America and the Caribbean Carlos a. Flórez P. ExEcutivE SEcrEtary, Latin amErican EnErgy OrganizatiOn (OLaDE) SUSTAINABLE ENERGY 42 In 2008, renewable energy sources in Latin America and the Caribbean (LAC) represented 26 per cent of the region’s energy demand supply matrix, causing this region to contribute only five per cent of the total global CO 2 emissions, as shown in Figure 1. The Latin American and Caribbean region has significant reserves of oil, natural gas and coal, in addition to renewable resources, especially hydropower and biofuels. However, these resources are not uniformly distributed, and fossil fuel production is primarily for export. Dependency on non-renewable commercial fuels has grown over recent years, especially for transportation and to some extent for power generation. In response, the countries of the region are developing initiatives to reduce greenhouse gas emissions as part of their climate change policies, which reward energy efficiency and renewable energy sources. Given this situation, over the past three years the meetings of Energy Ministers within the region have instructed OLADE, an inter-governmental technical assistance entity comprising 26 Member Countries of Latin America and the Caribbean and one Participant Country (Algeria), to support the work of its member countries towards sustainable development of its energy resources, with an emphasis on energy efficiency and renewable sources. In 2007 the Energy Ministers decided to “consolidate and institutionalise Figure 1. Primary energy matrix for Latin American and the Caribbean (LAC), 2008. Source: SIEE-OLADE, 2008 VISIT: WWW.CLIMATEACTIONPROGRAMME.ORG

POLICY Figure 2. Evolution of per capita CO 2 emissions. energy efficiency in national, sub–regional and regional policies”; in 2008 they aimed to “promote a raise in sustainable use of clean, renewable energy,” and in 2009 they decided to “design a South-South energy cooperation mechanism for the region, especially to develop renewable energy and rational & efficient energy use”. In this context, OLADE considered the successful experiences with energy efficiency in certain countries of the region, which led to a transfer of lessons learned on an inter-governmental level. The institutional frameworks that served as a basis for obtaining positive outcomes are being disseminated in the region to achieve the necessary sustainability, which has been lacking in country-level efforts and even in international cooperation programmes. Of special note are the experiences of Brazil, Cuba and Mexico, as detailed overleaf. In Brazil, the Procel Programs (estd. 1985) centred on the power sector and Conpet (estd. 1991) on the hydrocarbons sector. In 2007, Procel had an investment of $30 million, and was able to save 3.93 TWh and postpone $1.57 billion in new investments in the power sector. In Cuba, activities to substitute nine million incandescent bulbs with compact fluorescent lamps and to implement efficient appliances resulted in saving one million tones of oil equivalent for power generation (between 2006 and 2008). In Mexico the activities carried out in 2007 the CONUEE (‘National Commission for Efficient Use of Energy’ – formerly CONAE), saved 21 million barrels of oil with a yearly budget of US$5.5 million, thereby demonstrating how productive it is for the State to have a governing body for energy efficiency. A similar strategy for the regional dissemination of experiences is being applied with technological developments and technical applications for bio–fuel use, taking advantage of LAC’s leadership in using ethanol– gasoline and biodiesel–diesel mixes to diversify liquid fuel supplies, in strict compliance with environmental, food security and appropriate land–use considerations. In the case of Brazil, a 25 per cent mixture of ethanol with gasoline or 100 per cent ethanol is mandatory throughout the country, which produces 27.1 billion litres of which 5.1 billion litres is exported. A device is now available to vary automobile fuel mixes automatically from 100 per cent gasoline to 100 per cent ethanol (‘flex-fuel’ cars). The alcohol that is used comes from sugar cane, a crop that has varieties with high yields and reports no conflicts with food production. In addition, all heavy transportation uses diesel with a four per cent mixture of biodiesel (five per cent from January 2010) obtained from several crops, soy in particular. Crop production for energy is carried out under sustainable development parameters and provides employment alternatives for broad sectors of society throughout the production chain. Climate change is affecting the region, and the energy sector in the LAC countries is making use of the Clean Development Mechanism (CDM) to execute more projects that help reduce harmful emissions. As of September 2009, 429 certified projects were reported (24 per cent of the world total), with a reduction of 358 millions of metric tones of CO 2 , (or 15 per cent on a global scale). Likewise, activities are being carried out to help minimise the impact of climate change, particularly in the water basins of LAC, which are used for power generation. As shown in Figure 2, the per-capita CO 2 emissions in the region are on the rise. Beginning in the 1990s, structural reforms in the energy sector made some economic resources available to provide energy access for part of 40 million people, or the seven per cent of the entire LAC population, that lacks modern energy service. Rural electrification/energisation initiatives are being developed for this purpose, which in several cases include uses that could be classed as productive for poor populations in remote areas, thereby helping to meet the Millennium Development Goals. A few examples are the Argentine Rural Market Renewable Energy Project (PERMER from the Spanish), the ‘Luz para Todos’ Program in Brazil, the Rural Electrification Program in Bolivia, among others. Photo 1 shows the photovoltaic energy fence in San Antonio de Lipez, Potosi, Bolivia, for camelid grazing and quinoa growing. Despite the fact that the Latin American and Caribbean contribution to global CO 2 emissions is only five per cent, the change in climate is already affecting the region. The LAC region does not enforce a reduction in greenhouse gas emissions, but is aware of the rising emissions caused by economic and industrial development and has strategies to support climate change mitigation through renewable resources use and energy efficiency programs development. Author Carlos A. Flórez P. has been the Executive Secretary of the Latin American Energy Organization (OLADE) since 2008. He is a Colombian citizen and a professional in Administrative Sciences, with 26 years of experience in the Colombian public and private sector, 10 of which were in the energy sector. Organisation OLADE is an inter-governmental technical assistance entity composing of 26 Member Countries of Latin America and the Caribbean and one Participant Country (Algeria). Its maximum authority is the annual Meeting of Ministers of Energy, and its Energy–Economic Information System (SIEE from the Spanish) serves as a reference in the global context. Enquiries Carlos A. Flórez P. Av. Mariscal Sucre N58-63 y Fernandez Salvador OLADE Building, San Carlos Sector, Quito Ecuador Tel: 5932-2531674 | Fax: 5932-2531691 Email: Website: Source: SIEE-OLADE, 2008 SUSTAINABLE ENERGY 43 VISIT: WWW.CLIMATEACTIONPROGRAMME.ORG