G20 Foundation Publications China 2016 | Page 54

ENERGY RENEWABLE ENERGY IS A RESPONSE TO THE DILEMMA OF GROWTH VS CO2 EMISSIONS LUIZ EDUARDO F. DO AMARAL OSORIO Chief Institutional Relations & Legal Offi cer, CPFL 54 The energy sector is playing a crucial role in the sustainable development of the planet this century. At a time of transition to a low carbon economy, the key challenge will be to balance growth in energy demand with the rational use of natural resources and the reduction in greenhouse gas emissions. By 2050, the United Nations Organization estimates that two thirds of the global population, that is 6.3 billion people, will be living in urban centers. Emerging nations with levels of consumption inferior to those of the developed world will have to take the lead in preparing for the corresponding economic expansion, these cities of the future requiring the adoption of sustainable solutions. In this context, investments in clean energy sources and energy effi ciency become still more relevant. According to an International Renewable Energy Agency report, if the share of these sources in the global energy mix were to double to 36% by 2030, the environmental savings would be equivalent to as much as US$ 4.2 trillion. However, countries will have to coordinate their regulatory framework and stimulate the insertion of these alternative sources in their energy matrices if this is to become a reality. In Brazil, where the average annual electric energy consumption is 2.5 thousand kWh per capita – well below the 8.2 thousand kWh per year for members of the Organization for Economic Cooperation and Development (OECD) – the energy matrix contrasting with the majority of the world’s nations. More than 80% of the country´s electricity generation originates from clean sources, the emphasis being on hydroelectric energy, while for a good part of the world, coal is the principal source of energy. The sharp increase in the importance of alternative renewable energy in Brazil has been remarkable. This, in the form of wind, solar and biomass, accounts already for approximately 15% of domestic energy supply, an indication that as Brazilian consumption per capita grows,