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Overcoming the financial barrier to a low emission development strategy in Brazil

Author

Listed:
  • E. L. La Rovere
  • C.Grottera
  • W.Wills

Abstract

This paper presents two low GHG emission scenarios for Brazil up to 2050, and discusses the impact in the implementation of a deep decarbonization scenario of a financial device allowing for decreasing capital costs of mitigation investments. Specifically, we consider (i) a governmental plan scenario assuming the achievement of NDC targets up to 2030 and the extension of current policies up to 2050; and (ii) a deep decarbonization scenario leading to a national GHG emission pathway compatible with an international effort targeted to stabilize the global temperature at 1.5?°C above pre-industrial levels. We present a comparative analysis of the scenario results for key economic and social indicators, and simulate the adoption of a new financial device allowing to decrease capital costs of low carbon investments in Brazil. Our conclusions highlight the potential of innovative financial mechanisms to foster the transition to a low carbon society in developing countries, as illustrated in the case of Brazil.

Suggested Citation

  • E. L. La Rovere & C.Grottera & W.Wills, 2018. "Overcoming the financial barrier to a low emission development strategy in Brazil," International Economics, CEPII research center, issue 155, pages 61-68.
    • Handle: RePEc:cii:cepiie:2018-q3-155-7
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    Citations

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    Cited by:

    1. Haider Mahmood & Maham Furqan & Omar Ali Bagais, 2018. "Environmental Accounting of Financial Development and Foreign Investment: Spatial Analyses of East Asia," Sustainability, MDPI, vol. 11(1), pages 1-16, December.
    2. D'Orazio, Paola, 2022. "Mapping the emergence and diffusion of climate-related financial policies: Evidence from a cluster analysis on G20 countries," International Economics, Elsevier, vol. 169(C), pages 135-147.
    3. Guangyue Xu & Juanjuan Li & Peter M. Schwarz & Hualiu Yang & Huiying Chang, 2022. "Rural financial development and achieving an agricultural carbon emissions peak: an empirical analysis of Henan Province, China," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(11), pages 12936-12962, November.
    4. Sander Akkermans & Juan Luis Martín-Ortega & Ioannis Sebos & María José López-Blanco, 2023. "Exploring long-term mitigation pathways for a net zero Tajikistan," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 28(3), pages 1-26, March.
    5. William Wills & Emilio Lebre La Rovere & Carolina Grottera & Giovanna Ferrazzo Naspolini & Gaëlle Le Treut & F. Ghersi & Julien Lefèvre & Carolina Burle Schmidt Dubeux, 2022. "Economic and social effectiveness of carbon pricing schemes to meet Brazilian NDC targets," Post-Print hal-03500923, HAL.
    6. Mendoza Martinez, Clara Lisseth & Saari, Jussi & Melo, Yara & Cardoso, Marcelo & de Almeida, Gustavo Matheus & Vakkilainen, Esa, 2021. "Evaluation of thermochemical routes for the valorization of solid coffee residues to produce biofuels: A Brazilian case," Renewable and Sustainable Energy Reviews, Elsevier, vol. 137(C).
    7. Sun, Yunpeng & Guan, Weimin & Cao, Yuning & Bao, Qun, 2022. "Role of green finance policy in renewable energy deployment for carbon neutrality: Evidence from China," Renewable Energy, Elsevier, vol. 197(C), pages 643-653.
    8. Dian Permata Sari Mashari & Teuku Yuri M. Zagloel & Tri Edhi Budhi Soesilo & Istiana Maftuchah, 2023. "A Bibliometric and Literature Review: Alignment of Green Finance and Carbon Trading," Sustainability, MDPI, vol. 15(10), pages 1-18, May.

    More about this item

    Keywords

    Climate change mitigation; Low emission development strategies; Deep decarbonization; Climate finance; Innovative financial devices; Brazil;
    All these keywords.

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • P45 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - International Linkages
    • P18 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Energy; Environment
    • P43 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Finance; Public Finance
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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