Implications of the Paris Agreement on stranded assets in Latin America and the Caribbean: the case of gas-fired power plants and oil reserves

Agenda

Welcome. Aida Figari. Technical expert of the LEDS LAC secretariat, Libélula Perú.

Long-term decarbonization strategies: a tool to anticipate and avoid stranded assets in the transition to zero net emissions. Adrien Vogt-Schilb. Senior Economist, Inter-American Development Bank.

Implications of climate targets for oil production and tax revenues in Latin America and the Caribbean. Baltazar Solano-Rodríguez. Senior Research Fellow in Energy Systems Modeling, UCL Energy Institute (University College London). | Download presentation

Committed emissions and stranded asset risk in the Latin American and Caribbean electricity sector. Esperanza González-Mahecha. Climate Change Consultant, Inter-American Development Bank. | Download presentation

About the webinar

A zero net carbon economy is necessary to stabilize the climate. It is worth saying that this economy is technically feasible and comes with opportunities for the development of Latin American countries. However, the energy transition can generate losers and winners, which can make its implementation politically difficult.

For example, several countries in the region rely on oil tax revenues, but demand may be affected by the global transition to electric vehicles, renewable energy and the implementation of the Paris Agreement. An IDB and UCL study shows that between 66-81% of oil reserves in LAC could remain untapped by 2035, which could cost the region up to $4 trillion in royalties.

Another example is the electricity sector. A second study accounts for the CO2 emissions that will be emitted during the operation of existing and planned power plants over their lifetime. This study concludes that between 10% to 16% of existing power plants may need to be "abandoned" to meet the goals of the Paris agreement, and that building more gas, oil, or coal-fired plants in the region may be inconsistent with these goals.

This webinar will explain how long-term decarbonization strategies can be a tool to anticipate and avoid stranded assets in the transition to zero net emissions. The webinar will be held at Spanish. If you have any questions about this event, please contact the LEDS LAC Platform Secretariat: info@ledslac.org.

About the panelists

Adrien Vogt-Schilb

Adrien is an economist in the climate change division of the Inter-American Development Bank. His work focuses on the design of effective and politically acceptable emission reduction policies: how to align climate policies with local development objectives. Adrien holds a PhD in engineering and economics and is the author of 3 books and numerous scientific articles.

James Edmonds

He is Chief Scientist and Battelle Fellow at the Joint Global Change Research Institute (JGCRI). He has three decades of experience researching energy, economics and climate change, during which time he has published several books, numerous scientific papers and made countless presentations. Dr. Edmonds has served as lead author on every IPCC report to date, and serves on numerous panels and advisory boards related to energy, technology, economics and climate change.

Gokul Iyer

He is a scientist at JGCRI. Dr. Iyer's research focuses on investigating problems at the intersections of energy, land, and water using multi-sector, multi-scale human-Earth system models. He is currently coordinating the development and implementation of a US state-level model (GCAM-US) integrated into a global human-Earth system model (GCAM).

Additional Resources

Climate policy and nationally determined contributions: reconciling necessary ambition with political economy