ENERGY: A BRAZILIAN TOOL TO DEVELOP A LOW CARBON ECONOMY 1 INDEX •BRAZIL ENERGY MIX •GHG EMISSIONS •RENEWABILITY BRAZIL ENERGY MIX POWER GENERATION Did You Know 82% Of Brazil´s Eletrical Power Generation Comes From Water? 4 Itaipu ELECTRIC POWER GENERATION Source: Brazilian Energy Balance 2009 - EPE/MME, Key World Energy Statistics 2009 - IEA ETHANOL 6 Sugarcane Ethanol Facility CARS AND LIGHT COMMERCIAL VEHICLES FUEL CONSUMPTION Source: ANP 2009, FIESP 2009 ETHANOL AND CLIMATE CHANGE European Directive 2009/28/CE: promotes the use of energy from renewable sources. o Establishes a 10% target until 2020 for the transport sector. o Establishes that ethanol from sugarcane reduces 71% of greenhouse gases emissions when compared to gasoline. US Environmental Protection Agency – EPA 2010/February 2010 o The American Agency has designated sugarcane ethanol an advanced biofuel status, as it lowers GHG emissions up to 61%. By Adding 10% of ethanol to the gasoline Reduces up to 7% of GHG emissions GHG EMISSIONS World GHG emissions by sector in 2005 Brazil GHG emissions by sector in 2005 Waste 2% Land use change and forestry 12% Energy 67% Energy Industry 4% Agriculture 14% 15% Land use change and forestry 61% Industry 3% Agriculture 19% Waste 3% Source: World Resource Institute Source: MCT, 2010 GHG EMISSIONS Energy sector participation in total emission in 2005 – energy production and use (%) 67 79 15 89 Per capita emissions in energy sector (2005) - tCO2eq Source: IEA and EPE TOP 10 EMITTING COUNTRIES FROM FUEL COMBUSTION IN 2008 China 23.0% United States 19.7% Russian Federation 5.6% India 5.0% Japan Germany 4.1% 2.8% Canada 1.9% United Kingdom 1.8% Islamic Rep. of Iran 1.8% Korea 1.8% Top 10 total: 19.1 Gt CO2 World total : 29.4 Gt CO2 The top 10 emmiting countries account for about two-thirds of the world CO2 emissions from fossil fuel combustion in 2008. Source: IEA RENEWABILITY PRIMARY ENERGY DEMAND BY FUEL TYPE 2007 WORLD 12,013 MMTEPs BRAZIL 238 MMTEPs Biomass - 10% Renewable Non Renewable Other – 1% Biomass - 12% Non Renewable Renewable Other – 3% Biofuel – 0% Hydro - 15% Hydro - 2% 2030 WORLD 16,789 MMTEPs BRAZIL 558 MMTEPs Sugar Cane Products – 18% Biomass 9% Renewable Non Renewable Other – 2% Sugar Cane Products– 16% Non Renewable Renewable Biomass - 6% Other - 9% Biofuel – 1% Hydro – 2% Hydro – 13% Source: EPE and IEA HISTORICAL EVOLUTION IN AMERICAS AND CARIBBEAN Kbep RENEWABILITY RENEWABLE NO RENEWABLE Source: Olade, 2010 RENEWABLE ENERGY POTENTIAL IN LATIN AMERICA 224.898 MMBEP 6% Hydroelectric potential Other renewable energy potential 94% USED: Hydroelectricity: 22% Other: 4,2% Source: Olade FINAL REMARKS o Brazil’s success with ethanol offers an opportunity to reduce global emissions by increasing ethanol exports; o More emphasis on Regional Energy Integration Policy; o Increase the share of renewable sources. CAROLINA LEMBO INTERNATIONAL ENERGY MARKET COORDINATOR +55 11 3549 4636 1313 Paulista Avenue, 6th Floor 01311-923 São Paulo, Brazil www.fiesp.com.br carolina.lembo@fiesp.org.br 19