Central America: Environmental Issues

Introduction
The countries of Central America (Belize, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama) comprise an area rich with a diverse range of plant and animal life. It is estimated that approximately 7% of the world's animal species live in Central America, a narrow strip of forests and beaches that accounts for only 0.5% of earth's land area. The population of Central America is approximately 37 million, with a yearly growth rate of about 3%. Although Central America has been plagued for decades by civil wars and natural disasters, the region witnessed a period of economic growth throughout the 1990s. Expanding economies coupled with growing populations have put significant new stresses on the environment in Central America. Observers from around the world have concluded that the environmental quality of the region is in rapid decline.

Despite its recent economic growth, Central America remains one of the poorest regions on earth; a fact which has led to massive exploitation of the area's natural resource base. Large areas of forest have been cut down and burned for firewood or used in the production of paper, while significant portions of land have been cleared for agricultural use. Approximately half of all Central Americans live in rural areas, and it is estimated that the average family living below the poverty line burns approximately 12 tons of firewood a year. Also, as a result of oil exploration activities in certain parts of Guatemala, such as the northern Peten rainforest region, the building of roads has led to the clearing of land and forested areas. These activities have contributed to large-scale erosion and soil loss, leaving many areas vulnerable to flash floods and mudslides as the natural landscape's ability to retain water is jeopardized. The effects of the land degradation were felt most significantly in 1998, when Hurricane Mitch -- the region's most violent storm in over 200 years -- hit large parts of Central America, wreaking havoc on the economy and ecological landscape of many parts of the region. In Honduras alone, the hurricane killed more than 5,000 people, injured more than 2 million, and caused billions of dollars of damage.

Oil is the chief source of energy in most areas of Central America, and pollution from cars, industry, and power generation is a major problem in several areas. However, Central America is not a major producer of greenhouse gases, accounting for only about 0.2% of 2000 world carbon emissions totals. Central America, due to its contribution to carbon sequestration levels (the amount of carbon dioxide and other greenhouse gases absorbed by the region's forests) plays an important role in the Climate Change issue. Every Central American country has signed and ratified the United Nations Framework Convention on Climate Change. As non-Annex I countries, they are not obligated to reduce their emissions of greenhouse gases.


Per Capita Energy Use and Carbon Emissions
Per capita energy consumption in Central American countries is significantly lower than the per capita energy consumption levels of many Latin American countries. In 2000, the average per capita energy consumption of Central American countries measured approximately 24 million British thermal units (Btu) per person. Among these countries, Panama had the highest level of per capita energy consumption at 54 million Btu, more than double the regional average. As a whole, Central American countries consumed 0.73 quadrillion Btu of energy in 2000 (0.2% of the world's total).

In 2000, Central America's per capita carbon emissions were 0.3 metric tons, slightly (0.1 metric tons) less than the region's per capita carbon emissions in 1998 and 1999, and well below the world average. Because of Panama's relatively small population (2.86 million people in 2000), the role the country plays as a major center of maritime trade, and its relatively substantial industry and urbanization, per capita carbon emissions tend to be relatively high. In 2000, Panama had the highest rate of per capita carbon emissions in Central America, at 0.8 metric tons - four times the per capita carbon emissions in Guatemala (0.2 metric tons). Central America's per capita carbon emissions are expected to remain low in both the near and long-term as the region continues to develop its energy sector based on the use of cleaner sources of energy such as hydropower, which emits no carbon.

Central America contains little in the way of energy resources, with Guatemala being the region's only producer of oil. Oil is the primary fuel in Central America, followed by hydropower. In 2000, these two energy sources accounted for 70% and 22% of total energy consumption in the region, respectively. Although a negligible amount of coal is used in Central America, in January 2000, Guatemala began operating the 120-MW San Jose Power Station - the first coal-fired plant in Central America. Neither natural gas nor nuclear power is used in Central America.


Energy and Carbon Intensity
Energy intensity in Central America is on par with the energy intensity levels of most other countries in Latin America. In 2000, Central America consumed, on average, approximately 13,940 Btu per $1995. The region's average energy consumption per dollar of GDP has increased moderately over the last ten years, from 12,970 Btu per $1995 in 1990. Nicaragua has consistently had the highest energy intensity in Central America, with 25,980 thousand Btu per $1995 in 1999.

Carbon intensity in Central America is comparable to the carbon intensity levels of its Latin American neighbors. In 2000, carbon intensity in Central America averaged 0.21 metric tons of carbon per thousand $1995. The amount of carbon consumed per dollar of GDP in Central America has remained relatively stable since 1980, most likely reflecting the region's growing use of hydropower, which emits no carbon.

Air Pollution
Like much of Latin America, Central America's urban centers experienced large population growth throughout the 1990s. This growth has in most cases resulted in an increase in the number of motor vehicles, thus leading to the growing problem of urban air pollution. The number of motor vehicles in the region has increased up to 16% each year. It is estimated that nearly 70% of all urban air pollution in the Central American region is caused by vehicular traffic. This has caused serious health problems in the region. Since the end of Guatemala's civil war, respiratory ailments have been considered Guatemala's most common illness.

The chief pollution sources in Central America have traditionally been poorly maintained trucks and buses which run on lower quality fuels, such as leaded gasoline. However, the majority of countries in Central America have recently phased out the use of leaded gasoline, with Panama being the region's only nation to still permit the use of leaded gasoline for transportation.

Costa Rica is the regional leader regarding air quality. In 1996, it banned the use of leaded gasoline and has since reduced its ambient lead levels by two-thirds. Furthermore, every motor vehicle in Costa Rica must now pass an annual emissions inspection, and imported cars must come equipped with catalytic converters. Although much remains to be done regarding the process of improving the air quality of Central American cities, the region's countries appear to be making positive strides.

In May 2002, Mexico and Guatemala signed an environmental accord enabling Guatemala to draw from Mexico's experience battling urban air pollution, illegal logging, and other environmental issues. It is estimated that Guatemala lost approximately 1/3 of its forests in the last ten years alone. The May 2002 accord extends previous agreements on forest reserves and natural resources.

Hydropower and other Renewable energy
Notwithstanding the dominance of oil use in Central America's power sector, hydropower is extremely important to several of the region's countries as a primary source of power. Several Central American governments, such as Panama, Guatemala, Costa Rica, and Belize recently have initiated hydroelectric projects in their countries as a means of attracting foreign investment and of developing a more competitive market. However, there remains uncertainty regarding the future of hydropower in certain areas of Central America.

In September 1999, the government of Honduras ordered the evacuation of 100,000 people from the vicinity of the El Cajon hydroelectric dam, following two weeks of heavy rains and flooding which threatened to breach the dam. The dam, which provides almost 60% of the country's electricity and $8 million a year in electricity exports, illustrates the concerns over hydropower's viability in areas that are prone to heavy rain and flooding. The building of hydroelectric dams has also widely been blamed for the destruction of large portions of Central American forests.

The Belizean Supreme Court is currently considering an appeal regarding the construction of the Chalillo hydroelectric dam, to be located on the Macal River, upstream from the country's Mollejon dam. Alleged governmental approval for the construction of Chalillo has come under scrutiny by environmental groups from around the world, who took their case to the Belizean Supreme Court in August of 2002. The proposed dam would have a capacity of 7 megawatts (MW) and would also store water upstream for release into the Mollejon dam during the country's dry season. Environmental groups point out that building Chalillo could potentially destroy the breeding grounds of many of Central America's threatened and endangered wildlife. The Court's decision is expected in September, 2002.

Other sources of renewable energy are currently being used in Central America such as biomass, wind and solar. As part of U.S. Initiative on Joint Implementation, (a concept initiated under the United Nation's Framework Convention on Climate Change in an effort to curb greenhouse gas emissions at lower costs through international partnerships and cooperation) a few countries in Central America are now involved in the operation of several relatively small renewable energy projects.

The Bel/Maya Biomass Power Generation Project in Belize has installed an 18-MW steam power plant adjacent to a sugar mill in the community of Orange Walk in northern Belize which is fueled by crushed sugarcane, processed orange wastes, and wood wastes from sawmills and other nearby sources. The project reduces carbon emissions by replacing diesel oil-fired power generation with waste biomass fuel. The Bio-Gen Biomass Power Generation Project in Sava, Honduras is a similar project. The Bio-Gen project is a 15-MW biomass-fueled steam power plant just northwest of the city of Sava, Honduras. The plant is owned and operated by Biomasa-Generacion for the purpose of generating electrical power which it then sells to Empresa Nacional de Energia Electrica, the primary utility responsible for the generation, transmission, and distribution of electricity in Honduras. The project is fueled by biomass waste obtained from the forest products and palm oil industries, and is expected to reduce carbon emissions by as much as 627,273 metric tons over its projected 20-year lifetime.

The Plantas Eolicas S.A. Wind Facility in Costa Rica is a 20-MW wind electric plant which produces electricity from the operation of 55 U.S.-manufactured wind turbines. The project constitutes the largest private power project in Costa Rica and is the first commercial-scale wind project in Latin America.

In December 2001, the United Nations Environment Program launched a project to to map the solar and wind resources of 13 developing countries, including El Salvador, Guatemala, Honduras, and Nicaragua. The project, known as the Solar and Wind Energy Survey Assessment (SWERA), aims to provide potential investors with accurate information about renewable energy resources in these countries in order to accelerate investment.

Environmental Outlook
The governments of Central America face a difficult environmental challenge in coming years. Central America's greatest environmental challenge is that of sustainable development, as deforestation, loss of biodiversity and degradation of the region's land continue to increase. The region is, however, the beneficiary of significant sources of institutional and monetary help from numerous outside organizations such as the World Bank, the United States Agency for International Development, (USAID) the U.S. government, and non-governmental organizations (NGOs).

At the 1994 Summit of the Americas, the Central America-U.S. Joint Accord (CONCAUSA) agreement was signed in an effort to achieve a sustainable level of development in the region by focusing on the areas of environmental protection and natural resource management. The CONCAUSA agreement also includes energy initiatives for improving overall energy efficiency and energy distribution within Central America, as well as the further development of renewable energy resources. More recently, the CONCAUSA agreement established the Mesoamerican Biological Corridor - an attempt to protect critical habitat along the land bridge from Mexico to Panama. In 1999, the Clinton Administration committed to a second five-year, $25 million program in support of CONCAUSA. In October 2001, the U.S. government announced that it will donate an additional $11 million over three years for environmental protection in Guatemala.

Unfortunately, the Central American region remains far away from restructuring its land-use management policies, as it has yet to place in force some sort of effective environmental regulatory structure. However, an increasing awareness of the need to promote the idea of sustainable development, has begun to take root and provide room for sustainable economic development.