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that the top-three states of São Paulo, Minas Gerais and Rio Grande do Sul host
48% of all projects in Brazil. Together with Santa Catarina and Mato Grosso, 64%
of the activities are located in five out of 26 Brazilian federal units. At the same
time, these units are among the most developed, as indicated by the Human De-
velopment Index (HDI). Therefore the CDM in Brazil seems to be not an appro-
priate measure contributing to reduction of inequalities, as it rather partakes in ex-
acerbating the existing situation.
8.4.2 Opportunities for Brazil under the CDM
The main opportunities for CDM activities in Brazil lie in the energy sector and in
sink projects. Though the Brazilian electricity structure is mainly based on hydro-
power (Hirschle 2006), the available hydroelectric potential near the consumption
centres is almost fully occupied. Consequently, CDM provides the opportunity to
create incentives for renewable energy options in order to
“revert, at least par-
tially, the damaging consequences of large-scale adoption of fossil fuel thermoe-
lectricity”
(Seroa da Motta 2002). Considering current CDM activities, the major-
ity of projects belong to the biomass sectors. Power generation from bagasse as
well as the waste management sector and reductions of emissions from animal
waste and manure by livestock farming activities are of interest (Hirschle 2006).
Table 8.3.
Sectoral Distribution of Brazilian CDM projects (source: Brazilian Ministry of
Science and Technology 2008)
Sector
Number of Projects
(%)
Contribution to Annual
Emission Reductions (%)
Renewable Energies
47
39
Livestock Farming
17
6
Waste Management
12
27
Fossil Fuel Change
12
7
Energy Efficiency
7
4
Reforestation
0
1
Other
4
17
ing cogeneration with biomass is the most frequent project type. However, their
share of annual emission reductions is limited to 39%. In case of activities related
to the reduction of emissions from livestock, the situation is similar. In contrast,
waste management projects account for 12% of the CDM projects, but contribute
to 27% of the annual emission reductions, as these measures reduce methane. In
the industrial sector for example, steel companies developed measures to increase
energy efficiency (7% of all projects), but currently their contribution to annual
emission reductions is limited to a share of 4%.
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