The prospects for energy efficiency, R&D and climate change issues in a competitive energy sector environment in Brazil

Panel: Panel 5: Energy Efficiency Markets & Financing Mechanisms

Author:
Gilberto De Martino Jannuzzi, Universidade de Campinas (UNICAMP)

Abstract

The energy sector restructuring and deregulation that has taken place almost globally has created additional difficulties to governments willing to implement climate change policies, energy efficiency, and other public benefits associated with the energy industry. New approaches are required in order to finance and implement policies that bring about the desired societal benefits related to energy services. In Brazil substantial funds start to be collected from oil & gas concessions and privatised electric utilities revenues with the main purpose of investing in energy efficiency, research and development, environmental protection and energy sector capacity building. The creation of a funding mechanism is necessary but not sufficient to ensure the allocation of resources in activities that will bring about the desired benefits. In the case of Brazil, a great share of resources will be spent in R&D activities and the Ministry of Science and Technology will have a pivotal role in managing the newly created energy funds. In this paper we discuss the potential, current difficulties and limitations of these recent initiatives, we also suggest a greater link between climate change and public interest R&D to support the future development of energy efficiency and clean energy technology.