NEAR – TERM CLIMATE PROTECTION AND CLEAN AIR FOR

LATIN AMERICA AND THE CARIBBEAN

-Transport Sector-

Sergio Sanchez Bogota, Colombia

October 31st – November 2nd 2012

Contents

• Latin American Context

• Policies and instruments

– Brazil

– Colombia

– Chile

– Mexico

• Conclusions

• Recommendations

Greening Global Transport

• Greening transport systems requires to affect both activity and emission factors:

• It should be based on an Integrated Avoid-Shift-Improved Approach

• Prevent or eliminate unnecessary trips

Avoid

• Change to clean and efficient modes of transport

Shift • Deploy clean and

efficient technologies and fuels

Improve

Public Transport

Land use & transport planning

Non-motorized transport

Travel demand

management

Freight Transport

Fuels & technologies

Methodologies, and tools for

policy & project assessment

Knowledge plataforms

Mainstreaming

activities

Project Monitoring

and Evaluation

Enabling regional sustainable transport and air quality interventions

Latin American Context

• 582 million inhabitants in 2011 – 677 million in 2050

• GDP per capita (PPP): 10,271 USD

• Most urbanized region of developing world

– urban population: around 70% (2010), 90% (2030)

• Expected GDP growth: 3% (through 2030)

• More than 100 million inhabitants exposed to air pollution levels exceeding WHO standards

• Air pollution related health effects cost around 2% of GDP annually

• Transport sector is the major source of urban air pollution

• It is also one of the largest and fastest growing sources of GHG emissions

Motorization trends

Source: BBVA (2010)

Source: BBVA (2010)

An Overwhelming Increase in the Number of Motorcycles in Latin America

Source: Montezuma (2011)

Sulfur Content in Vehicle Fuels Diesel and Gasoline sulfur content standards

Country Diesel Gasoline

Argentina Gas Oil G3 (10ppm) is available

50ppm in cities

Bolivia 50ppm

Brazil 50ppm for public transport

Chile 50ppm nationwide / 15ppm in metropolitan areas

30ppm / 15ppm in metropolitan areas

Colombia 50ppm in Bogota and for public transport nationwide

Costa Rica 50ppm

Mexico 15ppm available in Mexico City, Guadalajara,

Monterrey and US border

30ppm available in Mexico City, Guadalajara

and Monterrey

Peru 50ppm in Lima and Callao

Puerto Rico

15ppm 15ppm

Virgin Islands

15ppm 15ppm

Fuel Subsidies in the Americas

Used LDVs Flows Around the World

Source: OECD 2009

Massive entrance of in-use vehicles at the Chilean-Bolivian border (Source: Lacy 2011)

Brazil - Highlights

• National 2009 legislation – 36% reduction of GHG in 2020 based on 2005

• State of Sao Paulo 2009 legislation – 20% reduction of GHG in 2020 based on 2005

• State of Sao Paulo is discussing a sustainable transport plan.

• City of Sao Paulo 2009 legislation – requirement for urban buses: gradual substitution of entire bus fleet for vehicles fueled with renewable non-fossil fuels until 2018 – 10% each year

Colombia - Highlights

• Middle class growth

• Increased income

• Reduction of retail car prices as a result of growing competition

• Growing automobile imports (60% of total sales in 2009)

• Duty tax exemption policy favoring SUV’s

• New transport systems (e.g. SITP)

IES Approach in Bogota Scope definition and team buiding

Baseline and emission scenarios

Air Quality Modeling

Health effects assessment

Economic valuation

Measures prioritization and results sharing

Formulación de recomendaciones para implementar medidas

Desarrollo de pericia técnica

Fortalecimiento de capacidades

Apoyo a la construcción de

consensos

Chile - Highlights

• Broad diversity of emissions and vehicle standards

• Lower requirements to larger vehicles including a discount incentive on VAT taxes when bought through companies

• 244% increase on SUV and light duty sales during the last six years reaching beyond 30% of total country sales.

Mexico - Highlights

• On June 6th 2012, Mexico adopted a General Law of Climate Change.

– Implements treaties and protocols signed by Mexico and harmonize Mexican regulations with international negotiations and agreements.

– The country commits to reduce GHG emissions nationwide (compared to base year 2000):

• 30 per cent by 2020; and

• 50 percent by 2050,

Portal of Emissions and Fuel Efficiency Indicators

Conclusions

• More stringent emission standards have resulted in cleaner fleets in countries/cities where they are applied

• Further vehicle emission reductions require:

– Speed up phase-in of ultra low sulfur automobile fuels and alternatives.

– Effective I&M programs

– Scrapping schemes

• Standards, taxes, labeling and other instruments to improve fuel efficiency, and reduce GHG and short life climate pollutants, are needed to ensure a climate friendly fleet.

• Measures to deal with negative impacts of high motorization and VKT growth rates are essential for avoiding offset benefits of greener fleets.

• Transboundary flow of used cars is a substantial carbon leak issue that demands both national international life cycle approach.

Recommendations

• Foster a policy dialogue among decision makers and technical leaders to share knowledge on: – Emission and fuel efficiency standards – Economic instruments (taxes, feebates, rebates, etc.) – Develop guidelines to implement labeling system – Technology options – Policy assessment – Other

• Implement a consumer oriented online database with LAC region-wide information on: – automobile technologies, – emissions and fuel efficiency of brands/models – Environmental, social and economic benefits of greener fleets.

Contact Information

Sergio Sanchez Executive Director

The Clean Air Institute

1100 H Street NW, Suite 800 Washington DC, 20005

Ph. No. +1 (202) 785 4222 ext. 13 Fax +1 (202) 785 4313

http://www.cleanairinstitute.org

http://www.cleanairnet.org/lac