Paper: The climate change - renewable energy nexus

The climate change-renewable energy nexus in Mercosur. A comparative analysis of Argentina's and Brazil's legislation

Casola, Laura; & Freier, Alexander (2018).

The energy sector is one of the main contributors to climate change due to the combustion of hydrocarbons, which is why renewable energy is presented as an alternative to promote sustainable development. In this regard, applying a comparative methodology, this article analyses climate change and renewable energy regulations in Argentina and Brazil, considered the two politically and economically strongest states in Mercosur, which are particularly affected by climate change. In this logic, it examines whether states prioritize sustainable development or energy security, how Mercosur policies influence national decisions, and whether there are common standards that enable future regional integration in this area.

Introduction

Climate change, understood as the alteration of the composition of the atmosphere and its consequent negative impact on the structure and functioning of natural ecosystems, socioeconomic systems, health, and well-being, resulting from human activity, is not a recent process. On the contrary, the origin of this phenomenon dates back to the 18th century, starting with the Industrial Revolution, which, as a counterpart to development, also brought with it environmental deterioration and landscape degradation. However, in recent decades, its effects have intensified due to increasing human pressure on the environment.

In simple terms, climate change is a consequence of the increase in the temperature of the Earth's environment, which causes adverse consequences such as the melting of glaciers, rising sea levels, droughts, and the extinction of flora and fauna. In this regard, scientific advances have determined that the main cause of global warming is the presence in the atmosphere of certain gases—known as greenhouse gases (GHGs)—that trap heat emitted by the Earth's surface (Secretaría de Energía de la Nación, 2004, 8). Carbon dioxide (CO2) is one of the gases found in the highest concentration in the atmosphere and its primary source is the burning of fossil fuels (ibid., 8), mainly derived from the activity of the energy sector.

Two ideas emerge from the latter assertion that should guide governments and private actors in their actions to curb climate change: the need to reduce greenhouse gas emissions and the need to transform the energy industry, which is mainly based on fossil fuels.

Regarding the first aspect, the 1992 United Nations Framework Convention on Climate Change represented a major step forward in environmental protection and human security, as it involved international recognition of the existence and severity of climate change. However, its nature as a “framework convention” required the adoption of the Kyoto Protocol in 1997, which focused specifically on achieving a reduction in GHG emissions through legally binding measures.

Regarding the second aspect, based on the recognition of the existence of climate change and its adverse effects, many countries around the world began to consider the need to modify their energy matrices, replacing fossil fuels with renewables, in order to reduce GHG emissions and contribute to sustainable development. However, investments in renewable energy are still insignificant compared to the annual investments made in the development of new fossil fuel reserves, which is completely incompatible with global climate protection (Secretaría de Energía de la Nación, 2004, 5).

The Mercosur region, due to its great wealth of natural resources, is one of the areas most affected by climate change (Ministry of Science, Technology, and Innovation, 2016, pp. 24 ff.; Secretariat of Environment and Sustainable Development of the Nation, 2015, 10 ff.). In addition, it has extensive hydrocarbon reserves that are massively exploited to supply the energy industry (Freier, 2016a), meaning that the region is both a source of GHG emissions and adversely affected by their effects.

The following section analyzes the relationship between climate change policy and the promotion of renewable energy in Argentina and Brazil, as well as the influence exerted on them by the regional context of Mercosur. To this end, we seek answers to the following questions: To what extent is energy policy considered a tool against climate change? Do states prioritize sustainable development or energy security? To what extent does Mercosur function as a guiding framework for collective action by states in this area? Are there common standards that enable future regional integration in the field of renewable energy?