Carbon Credits and Energy Efficiency

Abstract

International carbon credit markets are based in differences between developing and developed countries greenhouse gases emissions mitigation costs and technological limits faced by developed countries. Potential of energy efficiency measures to reduce fossil fuel usage in Brazilian industrial segments is assessed, and analysis of such potentials singles out those segments and regions more apt to generate carbon credits through Clean Development Mechanism (CDM) projects. Though there are currently few Brazilian CDM projects, their number may be significantly increased, which is a positive outcome. For this purpose, it is crucial that energy conservation programs estimate how CDM may improve their economic competitiveness.

Keywords:

• Carbon credits
• CDM
• Energy efficiency
• Greenhouse effect

Notes

¹Annex 1 countries are the developed countries of the Organization for Economic Cooperation and Development and the former Soviet Union countries generally referred to as transition economies (TE).

² Electric Power Purchasing Chamber (CCEE)

³ Decennial Energy Plan 2008–2017, submitted to public consultation on December 2008 by the Ministry of Mines and Energy (MME 2008)

⁴ “Ministry of Mines and Energy,” published at the Folha de São Paulo newspaper on January 7, 2009.

MME/EPE (Ministério das Minas e Energia/Empresa de Pesquisa Energética—Ministry of Mines and Energy/Enterprise for Research on Energy). 2007. Plano Nacional de Energia (PNE) 2030. p 37, 2007.

MME/EPE (Ministério das Minas e Energia/Empresa de Pesquisa Energética—Ministry of Mines and Energy/Enterprise for Research on Energy). 2005. Plano Decenal de Expansão 2006–2015.

IPCC (Intergovernmental Panel on Climate Change). 2007. Executive Summary for Policy Makers–Workgroup III Contribution to the Fourth IPCC Assessment Report. Intergovernmental Panel on Climate Change of the United Nations. New York

UNEP/ESMAP/RISO, Poole, A. D. 2006. Brazilian Report: Desenvolvendo Mecanismos de Intermediação Financeira para Projetos de Eficiência Energética no Brasil, China e Índia.