1. NEAR – TERM CLIMATE PROTECTION AND
CLEAN AIR FOR
LATIN AMERICA AND THE CARIBBEAN
-Transport Sector-
Sergio Sanchez
Bogota, Colombia
October 31st – November 2nd 2012

2. Contents
• Latin American Context
• Policies and instruments
– Brazil
– Colombia
– Chile
– Mexico
• Conclusions
• Recommendations

3. Greening Global Transport
• Greening transport systems requires to affect both activity and emission
factors:
• It should be based on an Integrated Avoid-Shift-Improved Approach
• Prevent or
Shift • Deploy clean and
eliminate efficient
unnecessary trips technologies and
• Change to clean fuels
and efficient modes
of transport
Avoid Improve

4. Enabling regional sustainable transport
and air quality interventions
Methodologies,
and tools for
policy & project
assessment
Fuels & Public
technologies Transport
Project
Monitoring Land use & Knowledge
Freight
Transport
transport plataforms
and Evaluation planning
Travel Non-
demand motorized
management transport
Mainstreaming
activities

5. Latin American Context
• 582 million inhabitants in 2011 – 677 million in 2050
• GDP per capita (PPP): 10,271 USD
• Most urbanized region of developing world
– urban population: around 70% (2010), 90% (2030)
• Expected GDP growth: 3% (through 2030)
• More than 100 million inhabitants exposed to air pollution levels exceeding
WHO standards
• Air pollution related health effects cost around 2% of GDP annually
• Transport sector is the major source of urban air pollution
• It is also one of the largest and fastest growing sources of GHG emissions

6. Motorization trends
Source: BBVA (2010)

7. Source: BBVA (2010)

8. An Overwhelming Increase in the Number of
Motorcycles in Latin America
Source: Montezuma (2011)

9. Sulfur Content in Vehicle Fuels
Diesel and Gasoline sulfur content standards
Country Diesel Gasoline
Argentina Gas Oil G3 (10ppm) is 50ppm in cities
available
Bolivia 50ppm
Brazil 50ppm for public transport
Chile 50ppm nationwide / 15ppm 30ppm / 15ppm in
in metropolitan areas metropolitan areas
Colombia 50ppm in Bogota and for
public transport nationwide
Costa Rica 50ppm
Mexico 15ppm available in Mexico 30ppm available in
City, Guadalajara, Mexico City, Guadalajara
Monterrey and US border and Monterrey
Peru 50ppm in Lima and Callao
Puerto 15ppm 15ppm
Rico
Virgin 15ppm 15ppm
Islands

10. Fuel Subsidies in the Americas

11. Used LDVs Flows Around the World
Massive entrance of in-use
vehicles at the Chilean-
Bolivian border (Source:
Lacy 2011)
Source: OECD 2009

12. Brazil - Highlights
• National 2009 legislation – 36% reduction of GHG
in 2020 based on 2005
• State of Sao Paulo 2009 legislation – 20%
reduction of GHG in 2020 based on 2005
• State of Sao Paulo is discussing a sustainable
transport plan.
• City of Sao Paulo 2009 legislation – requirement
for urban buses: gradual substitution of entire
bus fleet for vehicles fueled with renewable non-
fossil fuels until 2018 – 10% each year

13. Colombia - Highlights
• Middle class growth
• Increased income
• Reduction of retail car prices as a result of growing
competition
• Growing automobile imports (60% of total sales in 2009)
• Duty tax exemption policy favoring SUV’s
• New transport systems (e.g. SITP)

14. IES Approach in Bogota
Scope definition and team buiding
Baseline and emission scenarios
Air Quality Modeling
Health effects assessment
Economic valuation
Measures prioritization and results
sharing
Formulación de recomendaciones para
implementar medidas
Apoyo a la
Desarrollo de Fortalecimiento
construcción de
pericia técnica de capacidades
consensos

15. Chile - Highlights
• Broad diversity of emissions and vehicle
standards
• Lower requirements to larger vehicles
including a discount incentive on VAT taxes
when bought through companies
• 244% increase on SUV and light duty sales
during the last six years reaching beyond 30%
of total country sales.

16. Mexico - Highlights
• On June 6th 2012, Mexico adopted a General
Law of Climate Change.
– Implements treaties and protocols signed by
Mexico and harmonize Mexican regulations with
international negotiations and agreements.
– The country commits to reduce GHG emissions
nationwide (compared to base year 2000):
• 30 per cent by 2020; and
• 50 percent by 2050,

17. Portal of Emissions
and Fuel Efficiency Indicators

18. Conclusions
• More stringent emission standards have resulted in cleaner fleets in
countries/cities where they are applied
• Further vehicle emission reductions require:
– Speed up phase-in of ultra low sulfur automobile fuels and alternatives.
– Effective I&M programs
– Scrapping schemes
• Standards, taxes, labeling and other instruments to improve fuel efficiency,
and reduce GHG and short life climate pollutants, are needed to ensure a
climate friendly fleet.
• Measures to deal with negative impacts of high motorization and VKT
growth rates are essential for avoiding offset benefits of greener fleets.
• Transboundary flow of used cars is a substantial carbon leak issue that
demands both national international life cycle approach.

19. Recommendations
• Foster a policy dialogue among decision makers and
technical leaders to share knowledge on:
– Emission and fuel efficiency standards
– Economic instruments (taxes, feebates, rebates, etc.)
– Develop guidelines to implement labeling system
– Technology options
– Policy assessment
– Other
• Implement a consumer oriented online database with LAC
region-wide information on:
– automobile technologies,
– emissions and fuel efficiency of brands/models
– Environmental, social and economic benefits of greener fleets.

20. Contact Information
Sergio Sanchez
Executive Director
The Clean Air Institute
1100 H Street NW, Suite 800 Washington DC, 20005
Ph. No. +1 (202) 785 4222 ext. 13 Fax +1 (202) 785 4313
http://www.cleanairinstitute.org
http://www.cleanairnet.org/lac