Renewable and Non-renewable in the energy-emissions-climate nexus: Brazilian contributions to climate change via international trade

Abstract

The energy-emissions-climate nexus is closely related to economic activities and international trade. However, countries contribute differently to climate change according to the renewable and non-renewable ratio in their energy matrix and GHG emissions embodied in trade flows. This study aims to analyze Brazilian renewable and non-renewable energy contributions to global climate change via international trade by economic sector. An ecological input-output model integrating the energy matrix and CO2-eq emissions was used and improved to measure the virtual renewable and non-renewable energy and emissions embodied in international trade by economic sector. Outcomes show that the Brazilian energy matrix is three times cleaner than the global average, with renewable energy representing 47.5% of the total energy. The national energy footprint was 267.4 Mtoe, with 61.7% being from the domestic origin and 38.3% from imports. Consequently, the national carbon footprint was 765.1 Mt CO2-eq, with 61.5% being from the domestic origin and 38.5% from imports. Imports increase the Brazilian non-renewable carbon footprint since only 3.8% of emissions embodied in imported goods and services come from renewable energy. In contrast, Brazilian exports contribute to cleaner the world carbon footprint since 39.4% of emissions embodied in exports come from renewable energy. Brazil is a net importer of virtual non-renewable energy emissions and a net exporter of virtual renewable energy emissions, contributing positively to mitigate climate change. Fourteen of the forty sectors, emphasizing the agribusiness aggregate, are net exporters of virtual renewable energy emissions. Brazilian case signs to international institutions the need to promote trade policies and compensatory mechanisms that support the sectors with climate-change comparative advantage, such as Brazilian agribusiness, while national policies should enlarge the climate-change competitive advantages, like for transport sector.