81307249-Technical consultancy service in the components of electric mobility for the project "Sector Coupling and Green Economy in Brazil"

The project "Sector Coupling and Green Economy in Brazil" is commissioned by the German Federal Ministry for Economic Cooperation and Development (BMZ) and implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, in partnership with the Brazilian Federal Ministry of Mines and Energy (MME). The project goal is: "The urban transport and industrial sectors of the Brazilian economy are more climate-neutral, environmentally friendly and socially just". As a part of that project, this contract focuses on assessing the technical, economic, and environmental potential for vehicle fleet electrification in five Brazilian cities. The contract involves evaluating suitable technologies for these cities, analyzing environmental impacts, assessing economic implications, creating digital measures, and implementing a standardized method that is scalable to multiple cities. Brazil has today one of the electricity grids with the largest share of renewable energy sources in the world. In 2023, renewables accounted for 93.1% of all electricity generated in the country and the forecast is that the share of renewables in the energy mix will continue to increase, especially wind, biomass, and photovoltaic energy. However, energy-related emissions in Brazil have increased sharply over the past 20 years, especially in sectors such transport (+53%). In the transport segment, only 21.5% of energy comes from renewable sources, despite Brazil being a country with availability of biomass-based fuels (especially ethanol). According to data from the Energy Research Company (EPE), industry represents today one of the largest segments of energy consumption in the Brazilian economy. The Institute of Energy and Environment (IEMA) attributes almost 70% of annual greenhouse gas (GHG) emissions from fossil fuel consumption in Brazil (513 Mt CO2-eq) to the transport (196 Mt CO2-eq). Direct electrification with renewable energy makes it possible to reduce emissions in transport, the share of urban transport (buses, urban cleaning and urban logistics) is about 34 Mt CO2-eq. Objective The project seeks to contribute to making transport in Brazil more climate neutral and environmentally friendly. Methodology In the wake of the 2015 Conference in Paris (COP 21), Brazil announced that it will reduce its greenhouse gas emissions by 43% by 2030, compared to 2005. To achieve this, in addition to the increased use of renewable energy, energy efficiency should be increased by 10%. Therefore, the coupling of the main energy-consuming sectors, with the generation of renewable electricity offers an immense potential for decarbonization in Brazil. An effort that is in line with the goal set by the country to achieve climate neutrality by 2050 and that can contribute to transforming Brazil into one of the greenest and most competitive economies globally. In this sense, the project Sector Coupling and Green Economy seeks to work together with federal ministries, companies, and research institutes to foster direct electrification in transport to replace fossil energy sources. The project will work with 5 Brazilian municipalities, 2 of which in the Northeast, to provide technical and specialized advisory in the context of urban decarbonization strategies, for example, on topics such as electrification of public transport, urban services and urban logistics and the development of digital tools to improve service quality. In addition, the project will seek political articulation with the corresponding ministries and with research institutions relevant to the elaboration and dissemination of concepts of socially just and gender-equitable electrification in the transport sector. Furthermore, the project will seek articulation with business associations and research institutions for the development of electrification concepts based on the needs of associated companies, as well as concepts for the dissemination of direct electrification to other regions and other Brazilian industries. Impact The opportunities and potential of direct electrification have not yet been systematized or disseminated. Through the Sector Coupling and Green Economy project, the expectation is an increase in the interest for fostering direct electrification and related technologies that contribute to decrease emissions in urban transport. In this way, urban transport will be able to play a more active role in the energy transition. Regarding the direct impact, it is expected that the project will contribute to reducing annual greenhouse gas emissions by at least 10,000 tons of CO2-eq in 5 municipalities through the use of at least 30 zero-emission vehicles.