Indicators for Sustainable Energy Development in Brazil



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Indicators for Sustainable Energy Development in Brazil Roberto Schaeffer Alexandre Szklo Energy Planning Program COPPE/UFRJ September 2004

Summary Identification of main priority areas Defining Sustainable Energy Development indicators for Brazil Key indicators: time-series analysis Identification of response actions and energy policies Conclusions

Identification of main priority areas Priority Area #1 - Diversify Energy Matrix while promoting sustainable energy development Renewable energy supply expansion Reduce risks of power shortages or price shocks Diversify energy supply Stimulate new industries and create new jobs Contribute to economic and social development of poorer rural regions of Brazil Reduce adverse environmental impacts

Identification of main priority areas Priority Area #2 Promote energy efficiency while reducing energy consumption disparities and improving energy affordability Save consumers income Reduce cost and improve competitiveness of Brazilian enterprises Reduce risks of energy shortages Release pressure on government s budget related to infrastructure building Improve standard of living of the poorest Improve energy affordability Create job opportunities in underdeveloped rural areas

Defining Sustainable Energy Development indicators for Brazil Brazil s energy database review Energy and economic data are partially adequate Better coordination and classification in order to bring compatibility to different data sources Important information missing or unclear Lack of reliable information on some renewable biomass (e.g. fuelwood)

Defining Sustainable Energy Development indicators for Brazil ISED database assessment for the case of Brazil Importance of ethanol as a motor fuel (neat or anhydrous) Use of charcoal in the iron and steel industry Importance of potential for different types of hydro, wind and biomass-based power generation (harvested land...) Lack of appropriate indicators to identify regional and social disparities Distinction between accessibility and affordability

Key Indicators: time-series analysis ENERGY BALANCE ISED # 11.3 Total Primary Energy Supply 9 8 7 6 5 EJ 4 3 2 1 0 1980 1985 1990 1995 2000 2001 2002 Oil and oil products Combustible renewable biomass Hydropower Combustible non renewable biomass Coal and coal products Gas Uranium Electricity net import

Key Indicators: time-series analysis ISED # 18 Energy imports dependence 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% -10% 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 TPES Oil and Oil products Natural Gas Coal and Coal Products Electricity

Key Indicators: time-series analysis ISED # 11.1 Final energy consumption 7 6 5 4 EJ 3 2 1 0 1980 1985 1990 1995 2000 2001 2002 Oil products Electricity Fuelwood Coal and coal products Ethanol Charcoal Gas

Key Indicators: time-series analysis ISED # 11.1 Final Energy Consumption Sectoral Analysis 7 6 5 4 EJ 3 2 1 0 1980 1985 1990 1995 2000 2001 2002 Industry Transportation Residential Agriculture Commercial and public Non energy consumption/feedstock

Key Indicators: time-series analysis ISED # 5 Evolution of total distance traveled by passengers (passenger activity) in Brazil (pkm) (per capita) Air Rail Road Total 1980 78.60 114.26 3,374.33 3,567.19 1985 81.46 139.25 3,694.88 3,915.59 1990 102.76 123.09 4,115.03 4,340.88 1995 100.22 96.33 4,691.62 4,888.16 2000 121.10 n.a. 5,189.41 5,310.51 n.a. means not available

Key Indicators: time-series analysis ISED # 6 Evolution of total freight transport activity per capita in Brazil (t.km) (per capita) Air Island waters Pipeline Rail Road Total 1980 8.39 392.24 98.09 709.65 1,714.48 2,922.85 1985 9.91 577.72 131.50 741.83 1,686.08 3,147.06 1990 11.94 695.58 141.63 815.55 2,122.24 3,786.94 1995 12.28 444.04 151.61 858.15 2,383.45 3,849.54 2000 14.29 607.66 195.40 914.47 2,652.88 4,384.71

Key Indicators: time-series analysis Additional ISED # 11.4 Anhydrous ethanol added to gasoline 25% 20% % vol. 15% 10% 5% 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000

Key Indicators: time-series analysis Additional ISED # 11.5 Share of light fleet by fuel in Brazil 100 90 80 70 60 50 40 30 20 10 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 (%) Gasoline Alcohol Diesel

Key Indicators: time-series analysis ISED # 11.2 Power generation mix (GWh) public service 1980 1985 1990 1995 2000 2001 2002 PUBLIC SERVICE HYDRO 126,103 175,334 203,594 250,456 298,563 262,665 278,656 FUEL OIL 1,560 1,151 848 1,337 6,187 6,070 3,682 DIESEL OIL 907 1,134 1,511 2,698 4,084 4,010 4,286 NATURAL GAS 0 0 12 0 1,571 6,942 9,786 NUCLEAR 0 3,381 2,237 2,519 6,046 14,279 13,837 COAL 2,470 3,336 2,711 3,668 7,448 7,352 5,062 FUELWOOD 0 20 0 0 0 0 0 TOTAL PUBLIC SERVICE 131,040 184,356 210,913 260,678 323,899 301,318 315,309 TOTAL PUBLIC SERVICE 139,383 193,682 222,820 275,601 348,909 328,508 344,644

Key Indicators: time-series analysis ISED # 11.2 Power Generation Mix (GWh) self-producer SELF PRODUCER NATURAL GAS COAL FUELWOOD SUGAR-CANE BAGASSE BLACK LIQUOR OTHER PRIMARY DIESEL OIL FUEL OIL COKE GAS OTHER SECONDARY HYDRAULIC TOTAL SELF PRODUCER 1980 0 126 202 1,000 603 661 232 2,518 181 15 2,803 8,343 1985 0 102 549 1,740 682 1,059 283 1,303 525 43 3041 9,326 1990 314 103 612 1,864 1,103 1,649 459 1,996 438 256 3,114 11,907 1995 560 276 646 2,574 2,195 1,373 378 2,103 304 1,065 3,449 14,923 2000 2,497 219 763 3,653 3,006 3,474 1,504 1,810 583 1,660 5,840 25,010 2001 3,014 242 585 4,655 3,111 3,925 2,063 1,966 624 1,794 5,211 27,190 2002 3,358 247 677 5,360 3,515 4,184 1,545 1,737 693 1,731 6,288 29,335

Key Indicators: time-series analysis ISED # 35 & 35.5 Potential capacity for hydro-power generation and fraction currently in use Region TOTAL (MW) Installed Capacity in 2000 (MW) Installed Capacity / Total Potential North 112,495 4,867 4.3% Northeast 26,710 10,143 38.0% Southeast 42,776 21,204 49.6% Mid-West 36,255 8,337 23.0% South 41,859 17,169 41.0% Brazil 260,095 61,720 23.7%

Key Indicators: time-series analysis Additional ISED # 35.2 Estimated wind-power potential Region Capacity (GW) Power Generation (TWh/ano) Capacity Factor (%) North 12.84 26.45 24 Northeast 75.05 144.29 22 Mid-West 3.08 5.42 20 Southeast 29.74 54.93 21 South 22.76 41.11 21 Brazil 143.47 272.2 22

Key Indicators: time-series analysis Additional ISED # 35.3 Land use for sugar cane in Brazil 12% 10% 8% 6% 4% 2% 0% 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Ratio cultivated area for sugar-cane to cultivated area for primary crops Share of agricultural area used by sugar-cane share of total Brazil's area used by sugar-cane Brazil s total area corresponds to 854,740 (10 3 ha). Brazil s agricultural area varied over the period from 220,518 (10 3 ha) in 1980 to 250,200 (10 3 ha) in 2000

Key Indicators: time-series analysis ISED # 12 First-law efficiency of thermal power plants (public utilities only) Year % Year % 1980 34.0 1990 31.6 1981 30.9 1991 31.1 1982 32.5 1992 30.6 1983 34.5 1993 30.7 1984 28.8 1994 32.0 1985 31.6 1995 30.1 1986 31.7 1996 32.1 1987 30.4 1997 31.9 1988 30.1 1998 29.9 1989 32.3 1999 31.0 Expected start-up of operations for CCGT after 2000

Key Indicators: time-series analysis ECONOMIC DIMENSION ISED # 9 Energy intensity by sector 1,6 1,5 1,4 1,3 1,2 1980=1 1,1 1,0 0,9 0,8 0,7 0,6 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 Agriculture Industry Services In 1980, Agriculture energy intensity was 3.0 MJ/US$-2000 ppp, Industry energy intensity was 5.4 MJ/US$-2000 ppp and Services energy intensity was 3.1 MJ/US$-2000 ppp

Key Indicators: time-series analysis Shift to less-value added goods in the mix of industrial output: Metallurgy and Pulp & Paper sectors 2.00 2.50 1.75 1.50 1.25 1.00 0.75 0.50 Final Energy VA GDP 2.25 2.00 1.75 1.50 1.25 1.00 0.75 0.50 Final Energy VA GDP 0.25 0.25 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 Metallurgy Pulp and Paper In 1980, Metallurgy final energy use was 457,268 TJ, VA was million US$-2000 ppp 28,530 and GDP was million US$-2000 ppp 815,682 In 1980, Pulp and paper final energy use was 112,486 TJ, VA was million US$-2000 ppp 7,166 and GDP was million US$-2000 ppp 815,682

Key Indicators: time-series analysis ISED # 14 Energy Use per GDP 2.000 1.800 Electricity intensity 1.600 1.400 1.200 1.000 Energy Intensity (TPES) 0.800 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 In 1980, TPES/GDP was 6.53 MJ/US$-2000 ppp, and Electricity/GDP was 0.166 kwh/us$-ppp 2000.

Key Indicators: time-series analysis ISED # 16 Energy Consumption per Capita 2.10 Electricity per capita 1.90 1.70 Automotive fuel per capita 1.50 (1980=1) 1.30 TPES per capita 1.10 0.90 GPD per capita 0.70 Biomass per capita 0.50 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 In 1980, per capita total electricity consumption was 3,631 MJ; per capita total biomass consumption was 12,318 MJ; per capita automotive fuel consumption was 7,726 MJ, per capita TPES was 39,554 MJ, and per capita GDP was US$-2000 ppp 6,062.

Key Indicators: time-series analysis SOCIAL DIMENSION ISED # 22 Fraction of Households without electricity or heavily dependent on non-commercial energy 50,0% 45,0% 40,0% 35,0% 30,0% 25,0% 20,0% 15,0% 10,0% 5,0% 0,0% 1980 1991 2000 2001 Without electricity (1) Heavily dependent on non-commercial energy (2) (1) Families without electricity meter, (2) Families that own fuelwood oven

Key Indicators: time-series analysis Brazilian income inequalities and social disparities Major Social Indicators 1992 1993 1995 1996 1997 1998 1999 Line of Poverty (1) 40.8 41.7 33.9 33.5 33.9 32.8 34.1 Gini Index (2) 0.571 0.600 0.585 0.580 0.580 0.575 0.567 Income share of 10% richest (%) 45.81 48.58 47.92 47.59 47.70 47.92 47.45 Income share of 20% poorest (%) 2.32 2.24 2.29 2.15 2.20 2.25 2.34 (1) Percentage of people earning less than $2.0 per day, exchange rate values. (2) This is the degree of income concentration, considering the income distribution for all workers with more than 10 years old; it varies between 0 (perfect equality) and 1 (maximum inequality).

Key Indicators: time-series analysis Average electricity consumption by household in kwh/household per month 1980 1985 1990 1995 2000 2001 1980-90 (%) 1990-2000 (%) 2000-2001 (%) North 127 135 154 150 165 152 1.97 0.67-7.67 Northeast 85 85 96 102 111 93 1.19 1.44-16.28 Southeast 156 152 176 189 201 164 1.24 1.30-18.19 South 106 125 146 160 176 167 3.29 1.87-4.82 Mid-West 133 141 161 174 183 151 1.94 1.32-17.61 Brazil 133 135 152 162 173 146 1.34 1.30-15.35

Key Indicators: time-series analysis ISED # 21 Household energy expenditures estimates for 2000 Montly Household Expenditures US$ PPP-2000 (1) <2 2-3 3-5 5-10 >10 Income classes minimum wage (4) Electricity - 13.22 25.51 29.31 50.35 82.86 LPG 10.92 14.96 16.9 18.58 21.10 Household by income class (%) 22.3 14.6 18.1 16.5 12.6 Electricity Tariff (US$-ppp 2000/kWh) 0.09 0.15 0.15 0.22 0.25 Electricity Consumption Estimate (2) (kwh/month) 151 172 197 225 333 Global Average Consumption Estimate (3) (kwh/month) 173 (1) The only source of information on disposable income is the Family Budget Survey (IBGE, 1997), (2) These estimates were based on assumptions about the identification of the different electricity tariffs with the income classes. (3) The observed data for Brazil in 2000 was 173 kwh/month i.e. equal to the average consumption estimated in the table. (4) In 2000 minimum wage was equal to US$-2000 ppp 181.12.

Key Indicators: time-series analysis ENVIRONMENTAL DIMENSION ISED # 23 Quantities of Air Pollutants 1.80 1.60 NOx (1980=1) 1.40 1.20 1.00 0.80 SO2 CO 0.60 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 In 1980, SO2 emissions were 2,133 kt, NOx emissions were 1,423 kt and CO emissions were 19,403 kt

Key Indicators: time-series analysis ISED # 26 Annual GHG emissions from electricity generation and transportation 140.0 120.0 100.0 80.0 60.0 40.0 20.0 0.0 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 GHG from electricity production GHG from transportation In 1980, GHG from electricity production was 7.3 MtCO 2 eq and GHG from transportation was 70.3 MtCO 2 eq.

Identification of response actions and energy policies 1 - Diversify Brazil s Energy Matrix while promoting sustainable development Priority Areas 2 - Promote energy efficiency whilst reducing regional disparities and improving energy affordability Diversify energy supply Increase efficiency of supply and use of CHP Response Actions Decrease energy Intensities through end use energy efficiency Increase share of public transport Improve energy affordability of the poor

Decrease energy intensity through end use energy efficiency 9 - Energy Intensity by sectors 10 - Final energy intensity of selected products 23 - Quantities of air pollutant emissions 11.1 - Final energy mix 16 - Energy consumption per capita 26 - Quantities of greenhouse gas emissions Diversify energy supply 11.2 - Electricity generation mix 11.3 - Total primary energy supply 11.4 - Anhydrous ethanol atdded to gasoline 11.5 - Fleet of cars (ehtanol, gasoline, diesel) 14 - Energy use per GDP 17 - Indigenous energy production 18 - Net energy import dependence 35, 35.5 - Hydropower potential and fraction currently used 35.2, 35.6 - Windpower potential and fraction currently used 35.3, 35.4 - Agricultural area and fraction currently used by CRW Increase efficiency of supply and use of CHP Increase share of public transport Improve energy affordability of the poor 5 - Distance traveled per capita 6 - Freight transport activity by transport mode 3 - End-use energy prices with and without tax/subsidy 12 - Energy Supply Efficiency 20 - Ratio of average daily disposable income of poorest 20% 19 - Ratio of average disposable income 21 - Disposable income / private consumption per capita spent on energy 36 - Proven recoverable fossil fuel reserves 22 - Household energy affordability 37 - Life time of proven recoverable fossil fuel reserves All

Fully implement appliance efficiency standards law 9 - Energy Intensity by sectors Promote a more efficient use of electricity Adopt industrial energy intensity reduction targets and protocols Expand utility investments in enduse energy efficiency 10 - Final energy intensity of selected products 11.1 - Final energy mix 16 - Energy consumption per capita 23 - Quantities of air pollutant emissions 26 - Quantities of greenhouse gas emissions Adopt fossil fuel savings Stimulate renewable energy sources for power generation Stimulate ethanol automotive fuel and bagasse-fired CHP Develop and stimulate the adoption of new biomass sources Lift barriers to NGCHP implementation Improve the efficiency of passangers transport Creation of a fund for helping poor people buying energy services 5 - Distance traveled per capita 6 - Freight transport activity by transport mode 3 - End-use energy prices with and without tax/subsidy 11.2 - Electricity generation mix 11.3 - Total primary energy supply 11.4 - Anhydrous ethanol atdded to gasoline 11.5 - Fleet of cars (ehtanol, gasoline, diesel) 12 - Energy Supply Efficiency 20 - Ratio of average daily disposable income of poorest 20% 19 - Ratio of average disposable income 14 - Energy use per GDP 21 - Disposable income / private consumption per capita spent on energy 17 - Indigenous energy production 18 - Net energy import dependence 35, 35.5 - Hydropower potential and fraction currently used 35.2, 35.6 - Windpower potential and fraction currently used 35.3, 35.4 - Agricultural area and fraction currently used by CRW 36 - Proven recoverable fossil fuel reserves 22 - Household energy affordability 37 - Life time of proven recoverable fossil fuel reserves Back

Fully implement appliance efficiency standards law 9 - Energy Intensity by sectors Promote a more efficient use of electricity Adopt industrial energy intensity reduction targets and protocols Expand utility investments in enduse energy efficiency 10 - Final energy intensity of selected products 16 - Energy consumption per capita 23 - Quantities of air pollutant emissions 26 - Quantities of greenhouse gas emissions Adopt fossil fuel saving 14 - Energy use per GDP 17 - Indegenous energy production 35, 35.5 - Hydropower potential and fraction currently used 18 - Net energy import dependence 35.2, 35.6 - Windpower potential and fraction currently used 35.3, 35.4 - Agricultural area and fraction currently used by CRW 36 - Proven recoverable fossil fuel reserves 37 - Life time of proven recoverable fossil fuel reserves 21 - Disposable income / private consumption per capita spent on energy 22 - Household energy affordability Back

23 - Quantities of air pollutant emissions 11.1 - Final energy mix 16 - Energy consumption per capita 26 - Quantities of greenhouse gas emissions 11.2 - Electricity generation mix 14 - Energy use per GDP 17 - Indigenous energy production 35, 35.5 - Hydropower potential and fraction currently used Simulate renewable energy sources for power generation Stimulate ethanol automotive fuel and bagasse-fired CHP Develop and stimulate the adoption of new biomass sources 11.3 - Total primary energy supply 11.4 - Anhydrous ethanol atdded to gasoline 11.5 - Fleet of cars (ehtanol, gasoline, diesel) 18 - Net energy import dependence 35.2, 35.6 - Windpower potential and fraction currently used 35.3, 35.4 - Agricultural area and fraction currently used by CRW 36 - Proven recoverable fossil fuel reserves 37 - Life time of proven recoverable fossil fuel reserves Back

23 - Quantities of air pollutant emissions 11.1 - Final energy mix 16 - Energy consumption per capita 26 - Quantities of greenhouse gas emissions 11.2 - Electricity generation mix 14 - Energy use per GDP 17 - Indigenous energy production 35, 35.5 - Hydropower potential and fraction currently used 18 - Net energy import dependence 35.2, 35.6 - Windpower potential and fraction currently used 35.3, 35.4 - Agricultural area and fraction currently used by CRW Lift barriers to NGCHP implementation 12 - Energy Supply Efficiency 36 - Proven recoverable fossil fuel reserves 37 - Life time of proven recoverable fossil fuel reserves Back

9 - Energy Intensity by sectors 23 - Quantities of air pollutant emissions 14 - Energy use per GDP 16 - Energy consumption per capita 17 - Indegenous energy production 18 - Net energy import dependence 26 - Quantities of greenhouse gas emissions 35, 35.5 - Hydropower potential and fraction currently used 35.2, 35.6 - Windpower potential and fraction currently used 35.3, 35.4 - Agricultural area and fraction currently used by CRW 36 - Proven recoverable fossil fuel reserves Improve the efficiency of passangers transport 5 - Distance traveled per capita 6 - Freight transport activity by transport mode 37 - Life time of proven recoverable fossil fuel reserves Back

Creation of a fund for helping poor people buying energy services 3 - End-use energy prices with and without tax/subsidy 20 - Ratio of average daily disposable income of poorest 20% 19 - Ratio of average disposable income 21 - Disposable income / private consumption per capita spent on energy 22 - Household energy affordability Back

Priority Area #1 - Energy Policies Stimulate ethanol automotive fuel and sugar-cane bagasse cogeneration Sugar cane production sugar, ethanol (renewable liquid fuel) and bagasse (biomass for power generation) National Alcohol Fuel Program PROALCOOL Production of ethanol as a substitute for gasoline Improve the country s balance of payment Lower unemployment in the countryside Local and global environments benefits Today: Ethanol as an additive to gasoline (20-26% v.v.) Increasing sales of Flex-fuel cars might stimulate production of ethanol as automotive fuel Combined heat and power generation (CHP) fueled by sugar-cane bagasse as a distributed generation alternative Back

Priority Area #1 - Energy Policies Stimulate non-combustible new renewable energy sources for power generation Small-scale hydroplants (SSH), Wind Power and Solar Photovoltaic Energy After 1999 subsides from Fuels Consumption Account (CCC) Alternative Energy Sources Incentive Program (PROINFA) SSH-COM program Only 100 MW submitted so far Wind Power Technical potential of 143,470 MW, only 21.2 MW installed PROEOLICA Launched during electricity supply crisis (2001) Photovoltaic energy PRODEEM 5,744 photovoltaic systems with an average capacity of 535 Wp (2001) Target Service 100,000 remote communities Back

Priority Area #1 - Energy Policies Develop and stimulate the adoption of new biomass sources Production and use of vegetable oils and biodiesel in Brazil Application of ethanol infrastructure onto the biodiesel industry R&D on vegetable oil productivity and crop diversification Enhance profitability and attractiveness creation of markets for by-products of biodiesel Implement time-bound or quantity-bound fiscal investments to spark the development of a sustainable biodiesel industry Back

Priority Area #1 - Energy Policies Lift barriers to NGCHP implementation Interconnection of existing and future CHP enterprises to power grid with minimum requirement, avoiding excessive delays Awareness of advantages and the potential for CHP investments CHP projects in top priority list as new gas supplies become available Financial incentives Long term loans at low interest rates Tax incentives accelerated depreciation Performance-based contract ESCOS Review import taxes on CHP equipment Set-up of future incentives to manufacture of equipments in Brazil Back

Priority Area #2 - Energy Policies Promote a more efficient use of electricity National Electricity Conservation Program PROCEL Promote end-use electricity efficiency and transmission and distribution loss reduction Refrigerators and freezers testing, labeling and voluntary agreement with manufacturers Motors testing labeling and R&D projects Market for energy efficient lighting technologies Reduce electricity waste audits, workshops and information dissemination Installation of electricity meters Back

Priority Area #2 - Energy Policies Fully implement the appliance efficiency standards law Efficiency standards for manufacturers of electric-power consuming devices major household appliances (refrigerators, freezers, clothes washers, stoves, and air conditioners) lighting products (lamps and fluorescent lighting ballasts) commercial sector air conditioning standby power consumption of electronic devices (TVs, VCRs, microwave ovens, personal computers) Back

Priority Area #2 - Energy Policies Expand utility investments in end-use energy efficiency ANEEL Increase energy efficiency-spending requirement by distribution utilities State and Federal energy efficiency programs (PROCEL) Support energy efficiency investments made by households Finance energy services market for innovative energy efficiency measures, dissemination of information and training Compensation measures for utilities Recover costs as part of electricity bills Financial incentive ( bonus ) to operate effective programs Back

Priority Area #2 - Energy Policies Adopt industrial energy intensity reduction targets and protocols Improving operating and management practices Using better equipment such as high efficiency motors and motor speed controls Adopting innovative industrial process technologies Great potential for energy use reduction 30% in a wide range of energy-intensive industries 19% in cement industry (better technologies) 5-12% chemical industry (optimization of heat exchange network) Back

Priority Area #2 - Energy Policies Promote fossil fuel savings 1993 - a tax incentive encouraging the production of small-engine automobiles (<1000 cc) 2001 - almost three quarters of domestic sales of new automobiles consisted of one-liter engine automobiles Lower fuel consumption Abatement in CO 2 emissions 2004 Introduction of flex-fuel cars Back

Priority Area #2 - Energy Policies Improve the efficiency of passengers transport, through transport planning and shifts to less energy-intensive modes Displacement of individual transportation by mass transportation - Inter-modal integration and improved quality of service Access to low-income consumers Improve infrastructure for buses express bus lanes, efficient transfer stations and mass transit corridors Increase load factor of cars and light trucks Encourage pedestrian and bicycle trips Dedicated pedestrian and bicycle lanes Prohibit car use in very dense urban areas Back

Priority Area #2 - Energy Policies Creation of a fund for helping poor people buying energy services Financial resources energy tariffs or other government funds Provide low income segments of urban and rural areas of the country with a refund of part of their expenses with energy, such as gas and electricity Improve energy affordability among low income classes while maintaining a sufficiently high (real) energy price so as to stimulate energy efficiency Back

Conclusions Brazil s energy database need for improvement ISED set Brazil s specificities Use of ethanol as automotive fuel High potential for the use of alternative sources Identification of regional and social disparities Priority areas and related response actions Current energy policies Strategies for improvements in priority areas