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Linking Global, National and Local Levels. the Case of Argentina

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Linking Global, National and Local Levels. the Case of Argentina COPENHAGEN CENTRE ON ENERGY EFFICIENCY – ISSUE BRIEF SERIES VOL. 1 – JUNE 2019 DELIVERY OF ENERGY EFFICIENCY: Linking global, national and local levels. The case of Argentina KSENIA PETRICHENKO AND VALERIA ZAMBIANCHI Introduction At global level we are witnessing a considerable progress KEY INDICATORS in relation to the involvement of local institutions • Population: 44.9 million people in programmes for climate change mitigation. • GDP PPP: 844.71 bln. 2016 USD • Emissions/population: 4.75 CO metric tons/capita Notwithstanding this progress, in many countries the 2 (global average = 5.16; Latin America & Caribbean coverage of policy and practice remains patchy between average = 3.06) local and national levels, and does not always reflect • Primary Energy intensity: 4.34 MJ/$2011 PPP GDP international targets for clean energy, especially for energy (global average = 5.47; Latin America & Caribbean efficiency policies. This issue brief presents a methodology average = 3.82) to analyse gaps, which aggravate improvement of energy Sources: (World Population Review, 2018); (The World efficiency at different levels of governance, focusing on the Bank, 2018a); (IEA, 2018) case of Argentina and several selected municipalities. Argentina – context and energy data Situated in the Southern Cone of South America, Argentina is a vast country whose territory covers 2.8 million square kilometres with an estimated population of 44.9 million inhabitants (World Population Review, 2018), demonstrating one of the lowest population densities in the world with 14.4 persons per square kilometre (The World Bank, 2018a). Due to its great longitudinal extension, the climate of Argentina is very diverse with 13 climate zones varying from tundra, to warm desert, and humid subtropical areas (Peel, Finlayson, & McMahon, 2007). Climate diversity allows Argentina to be rich in natural resources, in turn contributing to the fact that Argentina is the second largest economy of South America, after Brazil (IMF, 2017). Argentina is classified as an emerging/ developing economy and is a member of the G20, having served its presidency in 2018 (G20, 2018). 1 18,000 160 ktoe 16,000 TWh 39% 140 14,000 12,000 120 10,000 24% 100 8,000 80 6,000 14% 4,000 13% 11% 60 2,000 40 0 Primary Natural Biofuel Coal Hydro and gas and waste 20 secondary oil 0 1992 1998 2012 1996 2016 1994 2014 1990 2010 2002 2008 2006 2004 2000 8% 6% 14% 40% Figure 1. Total final energy consumption by sector Figure 2. Total electricity consumption per year in TWh Source: IEA (2018) Source: IEA (2018) 32% 8% Residential Commercial Industrial 18,000 160 6% 26,5% ktoe Public Other 16,000 TWh 39% 140 14,000 7,5% 12,000 120 10,000 24% 100 8,000 Other 80 6,000 14% Public 4,000 13% 23,5% 28,5%11% 60 2,000 Industrial 40 0 Primary Natural Biofuel Coal Hydro Commercial and Industrygas and wasteCommercial and 20 secondary public services Transport oil Residential Agriculture/forestry 0 Residential Non-energy use 1992 1998 2012 1996 2016 1994 2014 1990 2010 2002 2008 2006 2004 2000 With an estimated growing urban population, which has 8% Institutional framework already reached 92% of the total population (The World In December 2015, Argentina established the Ministerio 6%Bank, 2018b), the agriculture sector constitutes only 6% of de Energía (Ministry of Energy), which among other GDP, while industry and construction together account for responsibilities manages energy efficiency at the national 22%, resulting in the tertiary sector having the largest share level through the Under-Secretariat for Energy Savings and (72%) of the Argentinian economy (Secretaría de Política Energy Efficiency (International Partnership for Energy 14% Económica, 2018). 40% Efficiency Cooperation, 2017). In September 2018, however, the Ministry of Energy was downgraded to become a Argentina is a federal presidential representative democratic secretariat under the Ministerio de Hacienda (Ministry of republic with a bicameral congress and is composed of 23 the Treasury). This was due to the Cabinet’s restructuring districts, which are further subdivided into departments, that occurred in 2018, where the number of ministries and one Autonomous City, the capital city – Buenos was halved to 10 (Decree 801/2018, 2018). Therefore, the Aires. The provinces, as well as the capital city, are fully former institutional framework was absorbed within the autonomous as they can enact their own constitution Ministry of the Treasury. This restructuring also affected and manage their own resources, in line with the national other ministries related to energy efficiency. As stipulated in constitution32% and regulation (National Constituent Argentina’s Nationally Determined Contributions (NDCs), Convention, 1994). energy-related8% matters are also the responsibility of the Residential Commercial Industrial Ministerio6% de Ambiente y Desarrollo26,5% Sustentable (Ministry of EnergyPublic data: trendsOther and projections Environment and Sustainable Development). This ministry In 2016, the energy production in Argentina was 75.8 Mtoe, was also downgraded in September 2018 and became a 7,5% with net imports of 17.7 Mtoe (IEA, 2018). Transport, sub-secretariat of the Ministerio del Interior, Obras Públicas followed by industry and residential sectors, demonstrated y Vivienda (Ministry of the Interior, Public Works and the largest share of final energy consumption (Figure 1) Housing) (ibid.). (ibid.). The total electricity consumption has been growing with a threefold increase since 1990 (Figure 2) (ibid.). Energy efficiency standards and certifications are created Other by the Instituto Argentino de Normalización y Certificación Argentina’s electricity market is the third largest in Latin (IRAM), which represent Argentina at the International America.Public In 2015, the total electricity production was 145 Organization for Standardization (ISO). TWh with consumption of 136 TWh (ibid.). Electricity 23,5% 28,5% generation in the country is highly centralised and mainly Policy framework Industrial comes from natural gas (48%), oil (39%) and hydro (<5%) The current regulatory and strategic framework on (ibid.). energy efficiency at the national level is comprised of a Commercial Industry Commercial and public services Transport Residential 2 Agriculture/forestry Residential Non-energy use combination of laws, plans and standards covering different which work with energy-related matters and develop aspects of energy efficiency, such as: corresponding policies (San Luis Province, 2018). • Ley 26.473, prohibiting the commercialisation of Some municipalities are utilising their local legislative incandescent light bulbs, targeting the residential sector powers in introducing regulations on energy efficiency. The in the country (Law 26473, 2010). legislative portfolio of provinces and municipalities related • Programa Nacional de Uso Racional y Efficiente de la to the energy sector has been growing over the past several Energia (National Programme for Rational and Efficient years (Chévez, Martini, & Discoli, 2016). A few examples are Use of Energy), in force since 2007. This Programme provided in the following paragraphs. declares that “efficient and rational” energy use is a priority for Argentina, stipulating a series of short and In 2011, the Autonomous City of Buenos Aires promulgated long term actions for various sectors, namely: industry, a law on climate change adaptation and mitigation, which residential and commercial sectors, as well as services, included evaluation and implementation measures for the education, public lighting and transportation. It also energy sector, reflecting the interest of the city in energy notes the importance of clean development mechanisms efficiency (Law 3871/11, 2011). and energy standards and labelling (Federal Decree 140/2007, 2007). Buenos Aires also adopted a city plan on adaptation and • Resolución ENRE 0084/2017, as National Plan for Public mitigation of climate change, which includes several energy Lighting, focusing on LED retrofitting for selected efficiency measures and targets by 2030 (Gobierno de la municipalities. This Plan establishes that municipalities Ciudad de Buenos Aires; Agencia de Protección Ambiental, will receive either grants or lighting technologies to 2012). The city further established a regulation in 2012 to implement the National Plan. The requirements for the enhance the implementation of IRAM’s standards, mainly municipalities’ selection include: notable energy savings focusing on the thermal insulation of buildings (Legislatura potential, adequate infrastructure, capacity in the field de la Ciudad Autónoma de Buenos Aires, 2012). Similarly, and implementation times (Ente Nacional Regulador de the municipality of Vicente Lopez implemented a regulation la Electricidad (Argentina), 2017). for establishment of mandatory application of technical • National technical standards on different components of air conditioning standards, Normas de acondicionamiento buildings certified by the IRAM. They state the national térmico de edificios (Municipio de Vicente Lopez, 2012). standards for the thermal insulation of buildings (Norma 11.625), thermal conditioning (Norma 11.605), building A number of municipalities, for example, Rosario and classification (Norma 11.603), heating losses (Norma Vicente Lopez, have demonstrated the possibility to 11.604) and energy efficiency of building envelopes complement the national framework with local legislation (Norma 11.900), lighting (Norma 62404), air conditioners
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