Opportunities and Constraints on Possible Options for Transport Sector CDM Projects – Brazilian Case Studies Suzana Kahn Ribeiro Importance of Transport Sector Regarding GHG Emissions The sector accounts for approximately 30% of global related GHG emissions The main modalities are road and aviation ( 90% of CO 2 emissions caused by transport) Both are showing an impressive increase, especially in developing countries

ENERGY AND TRANSPORT - WORLD USE OF OIL PER SECTOR % 58% +16.5%

ENERGY AND TRANSPORT – ENERGY USE IN TRANSPORT PER REGION

ENERGY AND TRANSPORT – WORLD SHARE OF ENERGY DEMAND IN TRANSPORT (IEA 2002)

CONSUMPTION OF GASOLINE AND DIESEL - WORLD (1999) % OF THE TOTAL DEMAND OF ENERGY IN THE TRANSPORT SECTOR (WBCSD 2002) North America Central and south America Western Europe Asia Industrialized Asia in development World Consumption of Gasoline (%) Consumption of Diesel (%)

Additional Benefits to those Related to GHG Emission Reduction Better urban air quality Lower dependence on oil/energy security Congestion Job generation

Energy transport needs are a key to development. Therefore, its better use should be highly promoted in developing countries. This turns energy efficiency in developing countries into a very powerful instrument to achieve the goal of decreasing energy growth rate in transport sector.

An important approach to use when analysing possible ways to reduce GHG emissions in transport is the ASIF methodology G = A*S*I*F G : GHG emissions A: Total travel activity ( in passenger or tonnes.kilometers) S: Sectoral structure ( modal share ) I: Energy intensity( fuel efficiency) F: Fuel carbon content

From those variables, F ( fuel) and I ( energy intensity) are the easiest to be altered and dealt with in the transport sector. Projects regarding fuel change and energy efficiency improvement are worth being analysed when addressing GHG reduction in transport sector

Brazilian Case Studies Fuel carbon content reduction ( biodiesel mixture – 10% in diesel)- Rio de Janeiro city as a quantitative example Energy efficiency through labelling program – São Paulo city as a quantitative example

Biodiesel Biofuel is a fuel produced from biomass and the biomass can be made up from a great variety of growing crops. Organic residues can also be used. They can be used either pure or blended with conventional fuels. Since the fuel is produced from biomass, the CO 2 emitted, when the biomass is burned, will be captured during the biomass growth. The net carbon balance varies a lot.

Transport Fuels Matrix - Brazil (MME, 2004) SUBSTITUTION FOR BIODIESEL 2 to 5%  1,1 to 2,8% (*) All gasoline in Brazil has around 25% of ethanol. Ethanol % 6,6 + 8,8  15,4% Anhydrou s Ethanol 8,8% Diesel Oil Natural gas Hydrous Alcohol Gasoline C

Project Description - Use of B10 in a company fleet in Rio de Janeiro City Biodiesel is produced in the same city and it will be obtained through the ethanol route and soybean as the main feedstock. The produced biodiesel will be blended at the bus garage. The plant will have a production capacity of 1000 liters per day The energy needed to run this plant comes from the electric grid ( hydroelectricity) The soybean oil will be purchased directly from Brazilian producers in Rio de Janeiro market 50km-length bus line/buses running 4500 km daily and consuming an average of 2000 liters of diesel

GHG baseline and additionality Project boundary: biodiesel production/ transport of biodiesel to service station/biodiesel use in buses. Baseline CO 2 emission Scenario

Project C0 2 Emission Scenario

Results A total of 188,157 kg of CO2 could be avoided in a 10 year period. However other gases emissions should be calculated, especially those related to land use change. Emissions outside boundaries are difficult to be predicted If vehicle efficiency changes during the period, the calculations result will change Relative price of biodiesel and petro-diesel behaviour is very uncertain. There are some difficulties regarding monitoring system ( data, actual fuel consumption,by-products) Since there are different agents in the process, it is important to assure that double counting will not occur

Energy Efficiency Fuel economy standards have been universally effective in raising new vehicle fuel economy and reducing fuel use and carbon emissions One of the strategies to achieve fuel economy potential is through a light vehicle labelling system. Information plays an important role in the market. Accurate information about energy efficiency from light vehicles do influence the consumer choice in favor of those vehicles which demand less fuel, therefore, leading to less CO 2 emission.

Project Description – Labelling Program for the Brazilian Light Duty Vehicles - São Paulo city fleet evaluation São Paulo fleet: 3.6 million light vehicles Fuel consumption:1.3 million tonnes of gasoline

Additionality

Results CO2 potential reduction in case of implementing light vehicle labelling program in the year 2000 in São Paulo city was 311,338 tonnes. Other gases emission could also be avoided with enormous benefits concerning air quality. One of the main difficulties faced by a project like this is related to emissions measurements. Emissions occur in relation to a certain fuel consumption which varies not only with the technological improvement but also according to how efficiently the driver uses the vehcile, the traffic flow, the amount of kilometers driven and so on... Therefore it is also difficult to establish a monitoring system.

Final Comments With respect to CDM opportunities in the transport sector, Brazil presents a great option in the biodiesel use with enormous dividend benefits and also regarding vehicle fuel efficiency due to its huge fleet with an increasing growth rate.