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1. evolution of energy consumption in the Latin america and the Caribbean region Figure 1. Latin America and the Caribbean’s energy matrix is detrimental to its sustainability (see Figure 1). Although according to the IPCC, Latin America still only accounts for about 4% of global GHG emissions although it does warn that: ‘the release of carbon to the atmosphere as a consequence of massive and continued deforestation in Latin America would have the potential to alter the global carbon balance.’17 In order to picture how each country contributes to climate change, it is helpful to consider per capita GHG emissions. There are major differences between countries in terms of size, demographics and industry levels, among other factors. Figure 2 shows per capita GHG emissions by country, along with the regional average and world average, to better understand how the development model of each country translates into GHG emissions. As can be seen in the figure overleaf, Trinidad and Tobago’s per capita GHG emission is nine times the regionalaverage.Thecountryisa major oil and gas exporter and is 100% dependent on fossil fuels. On the other hand, when comparing the regional average with the GHG emissions of developed countries like the UK and the US, major imbalances can be discerned. The UK’s GHG emissions per capita are twice the average of Latin America and the Caribbean. In absolute terms, some 80% of Latin America and the Caribbean’s GHG emissions are produced in five countries: Mexico, Brazil, Venezuela, Argentina and Colombia 29% Natural gas 1% Nuclear 9% Hydro-energy 14% Biomass 2% Other renewables 4% Coal and coke 41% Oil and derivatives Source: Energy-Economic Information Systems (SIEE)-Latin American Energy Organisation (OLADE), 2013 (Data 2011).18. The economic growth of Latin America and the Caribbean is estimated to be between 3.5% and4%ofGDP11 andisprojected to be 3% in the coming decades.12 The region’s development has been underpinned by the good performance of a primary-export model that has flourished over the last decade. The sustained increase in commodity prices has been reflected in the size of the region’s extractive exports and the availability of tax revenues. This begins to explain why governments in the region still promote large-scale, carbon-intensive investment, both public and private, in extractive industries, the expansion of agribusiness, and thermal energy systems. For example, in Nicaragua, a country with a huge potential for renewable energy,13 the Miramar plant,thelargestoilrefineryin Central America, is being built. Meanwhile in Bolivia approximately 80% of power generation investment projects are thermal power plants.14 Alongside the increase in economic output, the region has seen a substantial increase in energy consumption. Since 2004, the region’s energy consumption grew by around 2.9% per year,15 leading to an overall increase in GHG emissions of around 18%.16 This is due to the regional energy matrix being dominated by fossil fuels, which Low-Carbon Development in Latin America and the Caribbean: Evolution, experiences and challenges 7PDF Image | Low-Carbon Development in Latin America
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