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6. potentialsolutionsforovercomingbarriers to low-carbon development Considering the evolution of energy consumption, the available energy sources, the experiences of renewable energy and the implications of the carbon market, the authors have identified the following key barriers to low-carbon development in Latin America and the Caribbean and possible solutions to them. a. Government institutions. Countries maintain weak operational and decision-making structures at all levels, undermining their ability to promote low-carbon development paths. In many countries, public institutions still promote traditional investment policies that encourage fossil fuel-based energy production, for example Bolivia.92 Therefore, strong institutional basis and policy frameworks should be implemented to allow solid environmental governance. Countries need to: • innovate in operational and decision-making structures at all levels. Institutions need to be strengthened by training staff and incorporating specialised human resources on technological, environmental and planning issues • strengthen the institutions involved in climate change- related policy, in order to align, implement, evaluate and improve local and regional climate policies, maximising the environmental, social and economic benefits • decentralise their structure to generate decision-making spaces at different levels. b. Legal and regulatory framework. The existing national legal and regulatory mechanisms governing renewable energy projects are limited in scope. Energy saving, energy efficiency and renewable energy deployment therefore remain marginal in relation to the need. The scope of national legal and regulatory frameworks need to be broadened to increase the share of renewables in the regional energy mix, and to encourage economic policies based on low-carbon development. The experience of large-scale hydroelectric plants demonstrates the need for further improvement in the environmental assessment system, as well as the strengthening of the offices responsible for assessing and monitoring these types of projects. A starting point could be to include strategic environmental assessment in the regulations set for these types of projects. Cumulative impacts assessments, at river basin level, are also needed. c. Energy policy. Energy policy within Latin American and Caribbean countries is driven by a short-term vision, which can vary significantly depending on the orientation of each government, thus, creating confusion in the public and private sector. Governments should: • • Develop environment-friendly regulations and standards, taxes and levies, social licence, subsidies, financial incentives and programmes for research and development of information tools. These policies could be gathered in a legal device, like Mexico’s General Law on Climate Change passed in 2012. • Develop policies that encourage coordination between the different actors in the region, in order to exchange experiences on specific topics and to facilitate the implementation of south- south cooperation projects. • Prioritise energy-saving measures and energy efficiency at all levels, in order to postpone investments in expansion of energy systems and use available resources in projects that support the reduction of energy poverty. • Focus on the diversification of the energy matrix including both high-capacity technologies and widespread small-scale technologies, which could generate the same amount of energy and provide greater security to the electrical system. d. Energy planning. Energy planning is an effective instrument for the implementation of energy policies. Latin American and Caribbean countries should restart long-term energy planning, including measures to implement short- and long-term low-carbon development policies. Low-Carbon Development in Latin America and the Caribbean: Evolution, experiences and challenges 31PDF Image | Low-Carbon Development in Latin America
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