Workshop
Details
Programa_Precio al carbono y sector eléctrico en América Latina_Taller 2 herunterladenRecent events across Latin America have shown that public decision makers face multiple challenges in managing climate risks and ensuring economic prosperity. Public policy instruments such as carbon pricing, which are useful in addressing these multiple objectives flexibly, are of growing interest. Carbon pricing has proven to be an effective tool for driving the decarbonisation of the electricity sector by influencing electricity production, investment and consumption patterns. Similarly, in electricity systems that are more decarbonised, carbon pricing policies can act as a facilitator of decarbonisation in other sectors (e. g. by facilitating investments in decarbonisation of the transport sector). However, knowledge of the regulation and structure of the electricity sector is essential to design effective carbon pricing instruments to drive emissions reductions.
From a consumer point of view, a carbon pricing policy is primarily aimed at making carbon-intensive goods more expensive. However, the ultimate impact of the policy on consumers and households will be dictated by the design of the policy. Carbon pricing policy can support socio-economic objectives, depending on how governments decide to use the revenues generated by it and the sectors covered by it: investment in residential energy efficiency or the provision of direct transfers to low-income households may in fact make low-income households better off, even in the face of rising fossil fuel prices. This workshop will explore the experience with carbon pricing policies, along with their opportunities and limitations in the Latin American context, to provide insights to decision makers looking to implement carbon pricing, with a focus on the electricity sector.
[ The workshop is private. Participation is by invitation]