Climate Policy Modeling and NDC updating opportunities in Mexico, Brazil, and Indonesia

Present the methodology (PGA) for adapting the Energy Policy Simulator (EPS) for any country, given its existing climate policies and policy gaps, to build a reference scenario and a raising ambition scenario. The EPS is a tool that allows any country to model how its sectoral policies can impact GHG emissions reductions and the energy sector behavior, but also how these policies contribute to GDP, jobs, and health co-benefits, among others.

This tool is relevant for identifying the policies needed to comply with the NDC and long-term emission reduction targets. It covers different sectors such as energy, transport, industry, buildings, and AFOLU, and can incorporate market instruments such as carbon price, green taxes and subsidies that can boost the penetration of clean technologies and alternatives.

Currently, there are some countries applying this methodology to use the EPS to identify an optimal policy mix. Mexico, Brazil, and Indonesia will present their updates on adapting the model to their countries, as well as how this exercise could inform the NDC updating cycle for 2025. In this regard, opportunities identified by using this model for updating NDCs will be highlighted by the three countries.