Greenhouse Gas Reductions
Carbon Credits from Bioelectricity
Sugarcane bioelectricity supplies about 3% of Brazil’s current electricity needs. Experts expect that proportion to increase to nearly 18% by 2020/21, thanks to the spread of mechanized harvesting techniques that preserve additional plant matter to use as fuel in more-efficient generators. Such growth means renewable sugarcane will supply Brazil with more than 15,000 megawatts average (MW average) of energy later this decade that are neutral in greenhouse gas emissions.
For comparison, producing a comparable amount of electricity from fossil fuels would significantly increase carbon dioxide emissions.
15,287 MW of Electricity
Combined-cycle natural gas
Tons of Carbon Dioxide
Carbon neutrality and greenhouse gases reduction explain why bioelectricity is eligible for Certified Emissions Reductions (CER) credits under the Kyoto Protocol’s Clean Development Mechanism (CDM).
Brazil is one of the world leader in using the CDM program to finance low-carbon projects, after China and India. However, electricity generation from bagasse (the dry, fibrous residue left after sugarcane is crushed) only accounts for 5% of all renewable energy projects.
Unfortunately, the Clean Development Mechanism has not lived up to the lofty expectations envisioned when the Kyoto Protocol was originally signed, nor has the program produced results at a global scale. This shortcoming is mainly due to methodological difficulties and administrative constraints. For instance, countries that took the initiative to promote clean technologies and adopt ambitious environmental policies pre-Kyoto are penalized, since those previously approved projects are not eligible for certified emissions credit because they do not fulfill CDM’s “additionality” requirement.
When it comes to bagasse power projects, since methodology AM0015 was replaced by ACM0006, several Brazilian bioelectricity projects have applied for CDM validation but only two have been registered so far. Reducing current uncertainties associated with this methodology would certainly help to expand the benefits of sugarcane bioelectricity.