Policy Brief

Carbon Pricing Instruments in Latin America

Throughout this policy paper, we expect to provide a coherent narrative, tying together an impressive array of concepts and ideas regarding the use of Carbon Pricing Instruments (CPIs) in Latin America. At the end, we propose some key messages and recommendations.

Climate change is a complex problem that demands cooperative efforts. Addressing such a problem likely requires the employment of diverse policies and instruments. An increasing number of jurisdictions have adopted Carbon Pricing Instruments (CPIs) as a way to reduce their greenhouse gas (GHG) emissions. Indeed, in 2017, there were 51 CPIs implemented (or scheduled for implementation) in the world. There is still great potential for further developments, since 88 countries mention the use of CPIs in their Nationally Determined Contributions under the Paris Agreement.

Coordinated efforts can help to maximize the opportunities of governments, companies and other stakeholders involved with CPIs, for instance by leveraging political support and societal acceptance, as well as creating common markets and capitalizing on trade opportunities. To this point, the Pacific Alliance provides a good example: a regional trade agreement seeking to create a common market between its member countries - Chile, Colombia, Mexico and Peru - with the objective of promoting sustainable development.

It is always beneficial to explore good practices and lessons learned from both public and private sector experts and practitioners on this topic. In this sense, the outlook for carbon pricing in Latin America presents several important initiatives and events that happened recently or are planned to take place in the coming years. There is plenty of opportunity to strength the connections and synergies among jurisdictional initiatives, as well to link and potentiate international efforts in the region.

For this purpose, The Center for Sustainability Studies of Getulio Vargas Foundation (FGVces) and Konrad Adenauer Foundation, through its Programme Energy Security and Climate Change in Latin America (EKLA), organized the Latin America Carbon Pricing Forum, a two-days event held at FGV in São Paulo, Brazil, promoting the exchange of experiences and enhancing the level of engagement from different stakeholders towards CPIs and related topics within this region.

Our goal is not to present policy options for a given problem, but rather to highlight interesting ideas and accumulated experiences discussed in this Forum. All content offered below comes from the panels, expositions and dialogues registered at such an event, except when otherwise referenced; they do not (necessarily) represent a consensus between participants, but topics worthy of further consideration.

The document (PDF) is available above for free download.

Authors

Mariana Nicolletti, Guilherme Lefàvre, Betania Ap. Perboni Vilas Boas, Gustavo Velloso Breviglieri

published

Brazil, August 20, 2018

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Contact

Karina Marzano Franco

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Karina Marzano Franco
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