Kamyla B. Cunha and Fernando Rei Institute for Energy and Environment São Paulo – Brasil

1. Sub-national climate-friendly governance initiatives in developing world: a case study of State of São Paulo – Brazil Kamyla B. Cunha and Fernando Rei Institute for Energy and Environment São Paulo – Brasil REFGOV Conference 15th June 2006

2. Objective • International negotiations about climate change regime: complexity • Divergence of interests between UN Climate Change Convention (UNFCCC) Parties • Most of key developing countries - as national states - are very reluctant to push forward the discussion of commitments distribution between Parties • It is imperative to envisage alternative environmental governance initiatives, particularly proactive local and regional policies, particularly in developing countries. Objective of this study: to present sub-national climate-friendly governance initiatives now arising in the developing world, and taking as a study case the environmental policy implemented by the State of São Paulo, Brazil. The idea is to demonstrate that even considering the reluctant positions of national states (from developing countries) in assuming more specific mitigation commitments under UNFCCC umbrella, there is already happening sub-national proactive governance actions, which are leading to positive climate-friendly results

3. Presentation's structure • Role of developing countries in the evolution of the climate regime: • reluctance of major emitters • need to envisage measures capable of reconciling emission reductions with socio-economic development • Emergence of alternative environmental policy structures, mainly networks originating at local and regional levels: • Positive effects at regional levels • Experience of State of São Paulo: • The context of Brazil in the climate change negotiations • Climate-friendly measures under implementation in the regional level • Concluding remarks

4. Climate change mitigation and the role ofkey developing countries • International climate regime: CHALLENGE: to engage all the world's major emitters in a long-term effort that fairly and effectively mobilizes resources needed to protect the global climate

5. Climate change mitigation and the role ofkey developing countries Source: OECD/IEA, 2002 Source: IEA, 2005

6. Source: UNFCCC data base

7. The role of key developing countries: • Developing countries broader participation on climate change regime encompass 2 aspects: • Environmental effectiveness • Economic competitiveness between countries • G 77 + China: They have almost unanimously held the position of refusing to discuss any specific mitigation commitments • their historic and current emissions are still much lower than those of developed countries • differences in their mitigation and adaptation capacity • because of their different adaptive abilities and geographic conditions, these countries are effectively more vulnerable to the impact of climate change • They face other priority challenges, such as socio-economic development and poverty reduction The whole conflict and its solution hinge on the discussion about the development model itself

8. Climate change and development: a new role • Climatic changes can be regarded as new facts that force upon the State the challenge to reconcile its dual role: • that of holding political and legal authority to sovereignly discuss and agree to international measures to face global environmental problems (through international law) • that of guaranteeing wealth production and prevailing development patterns The question arising here is whether the State and the system of international institutions created by it - the UN - are able to reconcile these apparently antagonistic roles

9. Environmental governance and new forms of addressing climate change • In view of the opposition of representative governments of the main developing countries in assuming more effective efforts to face climatic change, • and keeping in mind the nature and inherent limitations of international law - the legal path to international cooperation among States -, • it is to be expected that alternative and complementary mechanisms to address the global environmental problem will emerge: These mechanisms have indeed been arising in the inter-state sphere through the formation of networks among non-governmental organizations and among regional and local government agents, and in the infra-state sphere by the initiative of local agents as a reflection of these networks, or else as purely domestic initiatives

10. Environmental governance and new forms of addressing climate change • Carachteristics: • Environmental problems such as climatic change ignore state barriers • It is considered a global common issue, but is concretely felt in infra-state levels == intergenerational responsibility at all levels of social organization, signifying the emergence of new and complementary structures to face global environmental problems • cooperative and coordinated action of governance systems based on several levels (state, supra-state, infra-state and inter-state) and comprising state and infra-state (regional and local) actors, as well as non-governmental actors, each performing a variety of roles • Positive effects: • a means to press against the inertia of States • an alternative path to face environmental problems

11. Environmental governance and new forms of addressing climate change • Agenda 21 • ICLEI: International Council for Local Environmental Initiatives • NRG4SD: Network of Regional Governments for Sustainable Development From the perspective of the developing world, these networks could be viewed as an alternative way to address climate change challenges where the official position of nation-states is still one of reluctance to take early action

12. Climate-friendly governance initiatives implemented in the State of Sao Paulo: the position of Brazil's Federal Government • COPs negotiations: the country plays an important role: • putting forward important proposals for the Kyoto Protocol design and further regulations, • acting in favour of the interests of developing countries: G 77+ China • The country lies in the 5th position in the top GHG emitters: • More than 75% domestic emissions are due to deforestation • The government sustain its position arguing that there is already in place national programs in the energy sector (such as PROCEL and PROINFA) and in the forest management. • Brazil's government shares the main arguments of other developing countries

13. Climate-friendly action in state of São Paulo Economic development, energy profile and CO2 emissions trends: • 41 million inhabitants: 21%of Brazil's entire population • Biggest economy of Brazil: representing 32% of the national economic productivity, with a GDP of US$ 235 billion in 2003 • Between 1995 and 2004, Brazil's GDP and São Paulo's GSP grew at annual rates of 4.9 and 4.8 percent respectively

14. Sao Paulo State: Economic development, energy profile and CO2 emissions trends: • Energy consumption in 2000 amounted to 27% of the national matrix • In 2004, the industrial and transportation sectors were the most significant energy consumers, with 39% and 26% of the state total respectively • the transport and industrial sectors are the most important sources of CO2 emissions in the state • Emissions profile: 83 million metric tons in 2003 , or nearly one-quarter of Brazil's total • The state would be the 39th-largest emitter in the world • In 2002, carbon intensity in São Paulo was 32% lower than the national average (515 tCO2/R$ GSP and 762 tCO2/R$ GDP respectively)

15. Sao Paulo State: Economic development, energy profile and CO2 emissions trends:

16. Climate-friendly initiatives • 1995: Climate Change Prevention Program - PROCLIMA • 2002: published its Agenda 21: climate change figures prominently • 2002: the state Government and other regional authorities launched the NRG4SD. Nowadays, the state is part of the Steering Committee • 2005: the state government of São Paulo signed a cooperation agreement with the state of California, USA • 2005: the state government of São Paulo created a Forum on Climate Change

17. Climate-friendly initiatives • Landfill emission reduction: • Improvement of waste disposal areas and landfills • Use of the landfill gas to generate energy. Ex.: Aterro Bandeirantes • Reducing transportation emissions: • Increase of ethanol production • Integrated Transport Plan at Metropolitan area of São Paulo • Hybrid diesel-electric vehicles • Expansion of the fleet of electric trolleybuses • Rapid transit corridors

18. Climate-friendly initiatives • Program for Reduction of Emissions to the Atmosphere (PREA) • Land use carbon sequestration (Riparian Forest Program) • Biomass origin electricity • Development of ambitious new-model vehicle emission standards (PROCONVE Phase 7)

19. Climate-friendly initiatives: benefits • Transport sector: • PROCONVE: • 1997 to 2000: net benefits to public health in São Paulo of over 4,500 avoided deaths and 5,500 avoided hospital admissions, valued at US$2.9 billion to 4.0 billion. • Between 2000 and 2020, the PROCONVE program is expected to result in almost 10,000 avoided hospital admissions and more than 8,800 avoided deaths attributed to air pollution, with an economic value of US$4.8 billion to $6.7 billion. • state of São Paulo's Integrated Transport Plan: • is expected to result in an additional 2,277 avoided hospital admissions and 1,800 avoided deaths from 2000 to 2020, with a value of US$1.7 billion to 2.3 billion

20. Climate-friendly initiatives: benefits • PREA: • It is estimated that savings of 8 to 15 percent are achievable in Brazilian industry based on cost-effective measures such as replacing oversized motors, improving transmission systems, replacing overloaded internal lines and transformers, correcting low power factors, and reducing excessive peak loads. Additional savings of 7 to 15 percent could be achieved by using efficient motors and variable-speed drives; improving the efficiency of electrical furnaces, boilers, and electrolytic processes; and through greater use of cogeneration. • The state's reforestation projects: • provide many other social and environmental benefits, including job creation, protection of ecosystem services (water purification, flood regulation, local climate regulation) and protection of biodiversity.

21. Conclusion remarks • Even though nation-states may remain reluctant to assume early climate change mitigation measures, thus making the international arena a complex and difficult path for the convergence of climate-friendly initiatives, there is enough space for alternative structures and approaches in both developing and developed countries • The spread of environmental networks at local and regional levels is an interesting governance example that legitimates regional climate-friendly actions, enhancing closer inter-regional cooperation and acting as a nuclear voice able to make positive impacts at national and international levels

22. Conclusion remarks • The implementation of climate-friendly measures and the demonstration of their benefits can be used as instruments to pressure nation-states to change their positions. • Internationally, the networks can create a representative arena to share experience and to participate in official negotiations. • These alternative environmental instruments are particularly important to the developing world: • the results of climate-friendly measures implemented under the influence of networks or by initiative of regional governments demonstrates the prevalence of environmental and cost benefits. • These initiatives validate the idea that it is not impossible to reconcile climate protection and development. • The experience of São Paulo state, though somewhat isolated within the Brazilian political scene, is an illustrative example of the fact that early action in climate mitigation can brings good results -- and this is particularly meaningful with regard to developing countries.

23. Thank you for your attention! Kamyla B. Cunha Institute of Energy and Environment UNICAMP kamyla@fem.unicamp.br 55 – 11 – 3815 4580