CDM implementation in Brazil’s rural and isolated regions: the Amazonian case

There is a growing understanding that energy services play a crucial role in underpinning efforts to achieve the UN Millennium Development Goals (MDG) and in improving the lives of poor people. Brazil remains challenged in regard to a number of social issues, notably poverty reduction in isolated areas, where access to electricity is as poor as their population. In the Amazonian region, most people have no access to electricity, or else have only a precarious supply. Due to several economic and technical reasons, many cities have old, inefficient diesel generators. In such a scenario, CDM (Clean Development Mechanism) can be an instrument both to mitigate climate change and to promote sustainable development in these remote areas, thereby contributing to the achievement of the MDGs in Brazil. However, CDM implementation in Brazil is still restricted to a few types of projects (such as sugar cane bagasse cogeneration and landfill gas use), mostly proposed by big companies and hardly ever directed to the Amazon region. The main objectives of this article are to assess the potential of CDM as a possible tool to promote electricity access to the poor rural population in the Amazonian region, and to discuss the main reasons why it has not become a reality so far.