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4.2. Regulations The region does not have an explicit policy framework for low-carbon development. Therefore a number of regulations determine the standards to be applied, the institutional structure of public administration, and the participation of private actors from which countries can develop strategies, plans and initiatives. Some national policy measures seek to promote the implementation of renewable energy projects, but do not provide precautionary measures to reduce potential impacts. A contradictory rhetoric can be heard in some countries, where policies which favour extractive industries and carbon-intense industries undermine the international discourse of the region regarding conservation and climate change mitigation. For example the Bolivian government passed the Law of the Rights of Mother Earth in 2010, but still favours investments in oil and gas exploration and has threatened indigenous people’s territories with a project to build a highway in the Isiboro Sécure National Park and Indigenous Territory. Brazil’s Amazon Protection Policy has a Forest Code, which requires landowners in the Brazilian Amazon to maintain 80% of forests as legal reserves, but it is not being implemented. To eliminate these defects and promote low-carbon development, the region needs an appropriate methodology for assessment of proposed energy initiatives, in order to identify and quantify the social benefits and avoided costs associated as well as the impacts in terms of change climate, air pollution, energy security and job generation, among other things. Assessments should also be made of the pros and cons of liquid and gaseous fuels and electricity, so that informed choices can be made. Practical Action developed a Fund for the Promotion of Micro-Hydro Power Stations more than 10 years ago.This fund created a low-interest loan facility to promote the implementation of micro-hydropower for rural electrification and productive use. Initially the project focused on productive businesses, but due to the political and economic circumstances of the time, many enterprises did not meet the financial criteria for the loan. After a few years, the Peruvian government, by means of regulation, transferred economic resources to local governments, allowing local governments and rural comunities to benefit from a fund that currently stands at some $800,000.The fund enabled the installation of 42 small hydropower plants, which currently generate electricity for 7,000 families. Low-Carbon Development in Latin America and the Caribbean: Evolution, experiences and challenges 27PDF Image | Low-Carbon Development in Latin America
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