World Energy Outlook 2006

stronger policies to connect bagasse producers to the grid. Nuclear power also
increases its contribution by 41%, to 34.1 TWh in 2030, on the assumption
that one more nuclear power plant is built after 2020. The share of hydropower
generation remains broadly unchanged.
Environmental Issues
Environmental issues in Brazil have a very high profile, both domestically
and internationally, where Brazil is a major player in discussions regarding
the environment. Brazil’s Amazon rainforest makes up 30% of the world’s
remaining tropical forests, provides shelter to at least one-tenth of the
world’s plant and animal species and is a vast source of freshwater.
Energy-related environmental problems include oil spills, air pollution,
flooding, deforestation and induced occupation of areas cleared for
transmission lines and pipelines. Oil spills cause severe environmental
damage. Air pollution is mainly due to rapid urbanisation, industrial
activities, poor fuel quality and biomass burning. The level of indoor air
pollution from cooking with fuelwood is high in some areas. There are
environmental pollution laws in place, with provision for sanctions. The
government is working to enforce the requirements stemming from
environmental impact assessments.
The construction of large dams is a major environmental issue. The Brazilian
government favours the development of dams but there is considerable
opposition. Because of opposition from environmental groups and weak
institutional capacity at the federal level, hydropower generation projects have
been delayed, despite the benefits these projects can offer when designed
properly, such as multiple use of water and lower CO 2 emissions. If new dams
are not constructed, the government may have no option but to invest in fossilfuel
plants and CO 2 emissions will rise.
Brazil’s energy-related CO 2 emissions grew by 3.8% per year from 1990 to
2004. The carbon intensity of the economy grew, because of greater use of
fossil fuels. CO 2 emissions per unit of GDP in PPP terms, however, were 20%
lower than the average for the Latin American region as a whole in 2004 and
45% lower than in OECD countries. Use of hydropower and ethanol
go some way to explaining this. Per-capita emissions in Brazil, at 1.8 tonnes
in 2004, are among the lowest in the world and compare with 11 tonnes
per capita in OECD countries.
Brazil ratified the Kyoto Protocol in 2002. As a developing country, Brazil is
not currently required to reduce its CO 2 emissions, but like other developing
countries, benefits from foreign investment encouraged by the Clean
484 World Energy Outlook 2006 - FOCUS ON KEY TOPICS