Ecuador Clean Mobility NAMA Elena Mejia, Laura Salgado, Christian Parra and Jorge Burbano Ministry of Environment, Ecuador Bonn, 16 de mayo 2016 With the support of CCAP
Ecuador Clean Mobility NAMA
Elena Mejia, Laura Salgado, Christian Parra and Jorge Burbano Ministry of Environment, Ecuador Bonn, 16 de mayo 2016
With the support of CCAP
Republic of Ecuador
Population (2013) 15.7 million GDP $95 billion USD GDP / capita $6,000 USD
INDC commitment: Unconditional: Reduce energy sector emissions 20.4-25% below the BAU (electricity generation and energy efficiency)
Conditional: Reduce energy sector emissions 37.5 and 45.8% below the BAU (electricity generation and energy efficiency + transportation)
Changing the electric matrix to clean energy from policy…
• National Environmental Framework: • Article 15 of the Constitution of the Republic of Ecuador declares that the
State shall promote, in the public and private sector, the use of environmentally clean and non-polluting alternative energies and low-impact technologies;
• Article 4 of Agreement No. 095 of the Ministry of Environment 2013 provides that municipalities must submit for approval by the Ministry of Environment proposals for "plans, programs and strategies for climate change" before its official recognition as a Climate Change Plan.
• . • National Energy Framework:
• Tax exemptions for EV and hybrid imports • Freeze on public sector procurement of conventional vehicles • Shift to clean power generation: 90% by end of 2017 • Preferential electricity tariffs for EV
ENCC
To reality
Leadership of Ecuador
Ecuador has developed three NAMAs in the Energy Sector
Efficient Cooking Stoves: promote the replacement of
LPG stoves for induction stoves base with clean
electricity
Optimization of the energy generation in the oil sector: recovery and utilization of associated gas for power
generation including a robust power transmission/distribution
system
Development of hydro power plants : sustainable use of hydric resources for
electricity generation
• 4'300.000 replacement of gas cookers for induction stoves
• Generation capacity of 3,5 MW in the oil sector (67 % hydro, 29% associated gas and residual with crude, before de NAMA it was 23% associated gas, 41% crude and 36% diesel with inefficient systems)
• Implementation of all the Master Plan Electrification more than 39 hydroelectric projects (7.661 MW installed capacity)
The transportation sector is the largest consumer of energy in Ecuador
• Transport emissions increased by 80% over the past 20 years • Expenditures on gasoline and diesel are increasing due to inefficiency of the
sector, around 1 billon USD are expend in subsidies by the Government • Rapid urbanization and growth in car ownership have lead to growing traffic
congestions and air pollution
4% 3% 1% 1%
12%
13%
17%
49%
Energy consumption by sector
Comercial
No energy related
Construction
Agriculture, fishery and mining
Own consumption
Residential
Industry
Transport
Source: MICSE, National Energy Balance 2014
Barriers to clean mobility
Financial: Limited availability of public funds
Technical: Need for technical support to implement clean mobility solutions
Institutional: Need for national institutional structure, strengthened policies and strategies to promote clean mobility solutions
Social: Technology adoption (capacity building)
Ecuador finance structure
BDE
CFN
• Plan Renova: financial mechanism to support vehicle renovation
SRI
• Green tax. Taxing the most inefficient vehicles
State Bank. Supports municipalities with credits
Based on Ecuador's Decentralization Policy, the National Constitution Article 264 paragraph 6 determined that planning, regulation and control of traffic and land transportation is an exclusive competence of municipalities within their area
Emerging policy framework for clean mobility
Cuenca: ¿How people from Cuenca move?
• Comprehensive sustainable mobility plan • Planned investments in EVs and charging
Source: Mobility plan Cuenca Available on http://www.cuenca.gob.ec/?q=system/files/planmovilidadcaracdemanda.pdf
Emerging policy framework for clean mobility
Loja: Ecological Governance • Integrated urban transport system • All new taxis must be electric
Source: Mobility plan Loja
Emerging policy framework for clean mobility
Galapagos: Clean energy • Galápagos Zero Fossil Fuel initiative • Cap on conventional vehicles, additional vehicles must be EV
NAMA will address barriers
Financial: Limited availability of public funds
• Climate finance will launch local clean mobility interventions
Technical: Need for technical support to implement clean mobility solutions
• Phase 1 projects will provide replicable examples and inform national program design
Institutional: Need for national institutional structure, strengthened policies and strategies to promote clean mobility solutions
• National program will support local implementation and develop policies and strategies for replication
Ecuador Government
CONSUMER
13
Reduced fuel expenditure
Pre-program fuel expenditure
National savings
Reflow
Clean Mobility Program
Climate finance
Proposed NAMA Concept
Climate Finance
Re
du
ced
g
asto
s
Pre
-p
rogr
am
sub
sid
ies
Phase Two: National Program • Technical assistance and implementation funding • Competitive process with clear selection criteria • Develop scale-up strategies for sustained impacts
14
Phase 1: Short-term implementation • Cities with proven capacity,
leadership & concrete opportunities • Projects that leverage existing
resources and with high potential for scale-up and replication
• Draw lessons to inform national program design
Loja
Galápagos
Phase 1
Short-term Implementation
Cuenca
Phased Approach
Phase 2
National Program
Clean Mobility Program
Phase Two: National Program • Technical assistance • Implementation funding • Competitive process with clear selection
criteria • Develop scale-up strategies for sustained
impacts
15
Technical Assistance
Financial Assistance
Private Fleets
Cities Other?
Clean Mobility Program
Proposals
Program staff
Task Force led by Ministry of Environment
$
Clean Mobility Program Structure
Phase One : Cuenca
Phase One investments could include:
• Support key components of mobility plan • Bicycle lanes and pedestrian networks • Electric taxis
• Leverage existing and plan investments • Domestic investments in electric tram $ 232 million • Support from National Government and Korea for EVs
Comprehensive mobility plan expected to reduce vehicle km traveled by 12% (University cluster)
Saving of 6 million of gallons of fuel per year approximately $ 24 million per year
The following information from Cuenca would strengthen the slide: $__ projected fuel savings from Mobility plan
[need info on total liters and fuel price assumptions]
$__ million invested in tram line [How much?]
Probably worth noting km extent of tram system
[other investments in cicolovias, etc?]
Phase One : Loja
Electric taxi + charging
National bank to finance 50 e-taxi pilot
30,000 t CO2/yr
3,6 million gallons of gasoline approximately 5
million USD per year
Integrating bicycle and pedestrian
infrastructure
City-wide network
180,000 t CO2/yr
20 million gallons of fuel per year approximately 25 million USD per year
Enhancing Loja’s integrated urban transport system
Renovating the bus fleet
Electric bus pilot
17,000 t CO2/yr
1,7 million gallons of diesel per year
approximately 2 million USD per year
The following information from Loja would strengthen the slide: $__ projected net energy cost savings from the 3 measures
[need info on total liters and fuel price assumptions [need info on increased electricity use (kWh) and fuel price assumptions]
__% reduction of total transport GHGs
Phase One : Galapagos
• Galápagos Zero Fossil Fuel initiative
– 80% energy needs from petroleum
– Investments in solar, wind, storage & transmission
• Policy to promote electric mobility
– Fossil fuel vehicle fleet is capped
– Additional vehicles must be EV
Biggest barrier to clean electric mobility is insufficient renewable energy
Phase One investments could support: Integrated clean energy and sustainable transportation package to reduce oil in power
generation and vehicles
• Additional RE capacity and storage • Electric vehicles, e-buses, e-motos and/or e-
bikes
The following information from Galapagos would strengthen the slide: $__ invested in renewable energy and storage [How much?]
Expected Outcomes
1. Create new models for clean urban mobility 2. Spark transition to EVs to take advantage of low-carbon electricity,
which is one of the measures of a whole package on programs and policies in the energy sector where we are working with two fronts: – Energy supply (clean electricity generation) – Energy demand (be as efficient as possible)
• Economic: – Relieve fiscal burden of inefficient fossil fuel use – Generate private savings on fuel – Leverage public, private and international investments
• Environmental: – Currently analyzing a variety of policy and penetration scenarios. – Clean mobility measures have the ability to reduce GHGs by up to 10 - 50%
• Social: – Healthier, more livable cities – Save time and money on travel – Improved access to jobs and services
21/05/2016 – UNDERSECRETARY OF CLIMATE CHNAGE