Ecuador Clean Mobility NAMA

Elena Mejia, Laura Salgado, Christian Parra and Jorge Burbano Ministry of Environment, Ecuador Bonn, 16 de mayo 2016

With the support of CCAP

Republic of Ecuador

Population (2013) 15.7 million GDP $95 billion USD GDP / capita $6,000 USD

INDC commitment: Unconditional: Reduce energy sector emissions 20.4-25% below the BAU (electricity generation and energy efficiency)

Conditional: Reduce energy sector emissions 37.5 and 45.8% below the BAU (electricity generation and energy efficiency + transportation)

Changing the electric matrix to clean energy from policy…

• National Environmental Framework: • Article 15 of the Constitution of the Republic of Ecuador declares that the

State shall promote, in the public and private sector, the use of environmentally clean and non-polluting alternative energies and low-impact technologies;

• Article 4 of Agreement No. 095 of the Ministry of Environment 2013 provides that municipalities must submit for approval by the Ministry of Environment proposals for "plans, programs and strategies for climate change" before its official recognition as a Climate Change Plan.

• . • National Energy Framework:

• Tax exemptions for EV and hybrid imports • Freeze on public sector procurement of conventional vehicles • Shift to clean power generation: 90% by end of 2017 • Preferential electricity tariffs for EV

ENCC

To reality

Leadership of Ecuador

Ecuador has developed three NAMAs in the Energy Sector

Efficient Cooking Stoves: promote the replacement of

LPG stoves for induction stoves base with clean

electricity

Optimization of the energy generation in the oil sector: recovery and utilization of associated gas for power

generation including a robust power transmission/distribution

system

Development of hydro power plants : sustainable use of hydric resources for

electricity generation

• 4'300.000 replacement of gas cookers for induction stoves

• Generation capacity of 3,5 MW in the oil sector (67 % hydro, 29% associated gas and residual with crude, before de NAMA it was 23% associated gas, 41% crude and 36% diesel with inefficient systems)

• Implementation of all the Master Plan Electrification more than 39 hydroelectric projects (7.661 MW installed capacity)

The transportation sector is the largest consumer of energy in Ecuador

• Transport emissions increased by 80% over the past 20 years • Expenditures on gasoline and diesel are increasing due to inefficiency of the

sector, around 1 billon USD are expend in subsidies by the Government • Rapid urbanization and growth in car ownership have lead to growing traffic

congestions and air pollution

4% 3% 1% 1%

12%

13%

17%

49%

Energy consumption by sector

Comercial

No energy related

Construction

Agriculture, fishery and mining

Own consumption

Residential

Industry

Transport

Source: MICSE, National Energy Balance 2014

Barriers to clean mobility

Financial: Limited availability of public funds

Technical: Need for technical support to implement clean mobility solutions

Institutional: Need for national institutional structure, strengthened policies and strategies to promote clean mobility solutions

Social: Technology adoption (capacity building)

Ecuador finance structure

BDE

CFN

• Plan Renova: financial mechanism to support vehicle renovation

SRI

• Green tax. Taxing the most inefficient vehicles

State Bank. Supports municipalities with credits

Based on Ecuador's Decentralization Policy, the National Constitution Article 264 paragraph 6 determined that planning, regulation and control of traffic and land transportation is an exclusive competence of municipalities within their area

Emerging policy framework for clean mobility

Cuenca: ¿How people from Cuenca move?

• Comprehensive sustainable mobility plan • Planned investments in EVs and charging

Source: Mobility plan Cuenca Available on http://www.cuenca.gob.ec/?q=system/files/planmovilidadcaracdemanda.pdf

Emerging policy framework for clean mobility

Loja: Ecological Governance • Integrated urban transport system • All new taxis must be electric

Source: Mobility plan Loja

Emerging policy framework for clean mobility

Galapagos: Clean energy • Galápagos Zero Fossil Fuel initiative • Cap on conventional vehicles, additional vehicles must be EV

NAMA will address barriers

Financial: Limited availability of public funds

• Climate finance will launch local clean mobility interventions

Technical: Need for technical support to implement clean mobility solutions

• Phase 1 projects will provide replicable examples and inform national program design

Institutional: Need for national institutional structure, strengthened policies and strategies to promote clean mobility solutions

• National program will support local implementation and develop policies and strategies for replication

Ecuador Government

CONSUMER

13

Reduced fuel expenditure

Pre-program fuel expenditure

National savings

Reflow

Clean Mobility Program

Climate finance

Proposed NAMA Concept

Climate Finance

Re

du

ced

g

asto

s

Pre

-p

rogr

am

sub

sid

ies

Phase Two: National Program • Technical assistance and implementation funding • Competitive process with clear selection criteria • Develop scale-up strategies for sustained impacts

14

Phase 1: Short-term implementation • Cities with proven capacity,

leadership & concrete opportunities • Projects that leverage existing

resources and with high potential for scale-up and replication

• Draw lessons to inform national program design

Loja

Galápagos

Phase 1

Short-term Implementation

Cuenca

Phased Approach

Phase 2

National Program

Clean Mobility Program

Phase Two: National Program • Technical assistance • Implementation funding • Competitive process with clear selection

criteria • Develop scale-up strategies for sustained

impacts

15

Technical Assistance

Financial Assistance

Private Fleets

Cities Other?

Clean Mobility Program

Proposals

Program staff

Task Force led by Ministry of Environment

$

Clean Mobility Program Structure

Phase One : Cuenca

Phase One investments could include:

• Support key components of mobility plan • Bicycle lanes and pedestrian networks • Electric taxis

• Leverage existing and plan investments • Domestic investments in electric tram $ 232 million • Support from National Government and Korea for EVs

Comprehensive mobility plan expected to reduce vehicle km traveled by 12% (University cluster)

Saving of 6 million of gallons of fuel per year approximately $ 24 million per year

The following information from Cuenca would strengthen the slide: $__ projected fuel savings from Mobility plan

[need info on total liters and fuel price assumptions]

$__ million invested in tram line [How much?]

Probably worth noting km extent of tram system

[other investments in cicolovias, etc?]

Phase One : Loja

Electric taxi + charging

National bank to finance 50 e-taxi pilot

30,000 t CO2/yr

3,6 million gallons of gasoline approximately 5

million USD per year

Integrating bicycle and pedestrian

infrastructure

City-wide network

180,000 t CO2/yr

20 million gallons of fuel per year approximately 25 million USD per year

Enhancing Loja’s integrated urban transport system

Renovating the bus fleet

Electric bus pilot

17,000 t CO2/yr

1,7 million gallons of diesel per year

approximately 2 million USD per year

The following information from Loja would strengthen the slide: $__ projected net energy cost savings from the 3 measures

[need info on total liters and fuel price assumptions [need info on increased electricity use (kWh) and fuel price assumptions]

__% reduction of total transport GHGs

Phase One : Galapagos

• Galápagos Zero Fossil Fuel initiative

– 80% energy needs from petroleum

– Investments in solar, wind, storage & transmission

• Policy to promote electric mobility

– Fossil fuel vehicle fleet is capped

– Additional vehicles must be EV

Biggest barrier to clean electric mobility is insufficient renewable energy

Phase One investments could support: Integrated clean energy and sustainable transportation package to reduce oil in power

generation and vehicles

• Additional RE capacity and storage • Electric vehicles, e-buses, e-motos and/or e-

bikes

The following information from Galapagos would strengthen the slide: $__ invested in renewable energy and storage [How much?]

Expected Outcomes

1. Create new models for clean urban mobility 2. Spark transition to EVs to take advantage of low-carbon electricity,

which is one of the measures of a whole package on programs and policies in the energy sector where we are working with two fronts: – Energy supply (clean electricity generation) – Energy demand (be as efficient as possible)

• Economic: – Relieve fiscal burden of inefficient fossil fuel use – Generate private savings on fuel – Leverage public, private and international investments

• Environmental: – Currently analyzing a variety of policy and penetration scenarios. – Clean mobility measures have the ability to reduce GHGs by up to 10 - 50%

• Social: – Healthier, more livable cities – Save time and money on travel – Improved access to jobs and services

21/05/2016 – UNDERSECRETARY OF CLIMATE CHNAGE