Unfolding international development cooperation in energy efficiency programs

How does international development cooperation (IDC) unfold in the domestic arena? More specifically, how priorities and dimensions addressed in cooperation agreements enter the domestic public policy agenda? This article seeks to present elements that respond to such questions, through qualitative analysis based on bibliography review and documental analysis of bilateral agreements on energy efficiency signed by Brazil with the developed countries, Brazilian national energy policies legislation implemented since the first oil crisis in the 1970s and the Brazilian National Plan on Climate Change. The goal is to identify the actors and the mechanisms by which those programs, which were originally structured in developed countries, were spread to Brazilian energy policy and characterize the instruments such as the cooperation


Introduction
How does international development cooperation (IDC) unfold in the domestic arena? There is a considerable body of literature developed in Brazil from the last decades, addressing issues on this inquiry. Nevertheless, most of the existing works focus on either military or strategic issues (ABDENUR; SOUZA NETO, 2014) or, when it comes to subjects related to technical cooperation, most of recent works deal with South-South cooperation (BESHARATI; ESTEVES, 2015;GÓMEZ et al. 2012;MENDONÇA;FARIA, 2015;Milhorance, 2013;VILLAR, 2016;SCHLEICHER;PLATIAU, 2017;XAVIER et al., 2018). Some theoretical contributions to the issue, either present relatively narrow perspectives, focusing on paradiplomacy, as Oliveira and Luvizzoto (2011) or do not bring an empirical analysis to corroborate theoretical insights like Pecequilo (2008). Therefore, there is a relatively gap on literature concerning empirical contributions analyzing the spillovers of IDC to domestic politics on technical arenas.
Regarding that, we highlight the importance of energy efficiency programs (EEPs) 1 related issues. The technical literature usually explain EEPs content in terms of techno-economic arguments (PICCINNI, 1994;SOUZA et al., 2009;SOUZA et al., 2011), since investing in energy efficiency is almost four times cheaper than in new sources of energy (Ribeiro, 2005).
Nevertheless, besides the economic reasoning, energy efficiency is straightly related to the political logic, and also connected to the international scenario (POLLIS et al., 2013); either by the influence of oil prices fluctuations on energy security, and 1 Energy efficiency programs can be understood as a set of practices and policies that reduce the cost of energy and/or increase its supply without increasing the amount of energy generated; involving integrated and streamlined planning of resources. There are two focuses on promoting efficiency projects: on the supply side or final consumption (demand). On the supply side, it is efficiency in generation, transmission, and distribution, through practices and the insertion of technologies that stimulate efficiency throughout the energy chain. An example of this is cogeneration and natural gas burning turbines, among other technologies that can provide more energy in a shorter time and existing locations. It also includes financial incentives to the production of less energy consuming appliances. On the demand side, it corresponds to measures that culminate in the reduction of energy needed to meet the demands of society, through technologies and practices aimed at ensuring a reduction of final consumption. It might be achieved either by the use of consumer control devices or by the better use of energy, labeling of electrical appliances or socio-educational programs, resulting in a more conscious and rational use of electric energy (Ribeiro, 2005).
by the international diffusion of norms and practices embedded on climate change international regime (CCIR). Since the first wave of publications on energy politics by the 1970s, when the firsts oil price peaks occurred, the concept of energy security gained a broader meaning, going through a narrow understanding of adequate energy supply to meet demands of incorporating concerns of environmental preservation, economic-social development and reduction of external dependence (HAGE, 2008;SOVACOOL, 2012). By that time, the challenges to secure the supply were faced either by the development of alternative sources, like Brazil did with the Programa Nacional do Álcool, or by optimizing existing technologies through energy efficiency.
Brazil is a relevant case in this approach because it is an example of an underdeveloped country that started to promote those kinds of policies domestically, in the late 1970s. Besides, the international level field achieved a more relevant role with the creation of an energy department within the Brazilian Foreign Ministry (BFM), in the mid-2000s. In this context, understanding foreign policies as public policies (MILANI; PINHEIRO, 2016) both IDC agreements and domestic EEPs emerge as relevant instruments of public policies that states can aim in order to improve energy security. Therefore, this article aims to analyze how IDC in Brazil unfolds in the domestic agenda, in the quest of the promotion of EEPs.
In order to understand this process, we employ a qualitative analysis based on bibliography review and documental analysis of bilateral agreements on energy efficiency signed by Brazil with the developed countries, Brazilian energy policies legislation and, the Brazilian National Plan on Climate Change. As a marginal goal, we also want to identify whether IDC encompass strategic elements coming from the recipient country. In other words, we seek to understand whether the implementation of EEPs respond only to a market logic, following an economic reasoning, or to political insights materialized in IDC and strategic movements from the Brazilian Foreign Policy (BFP), seeking to promote energy instruments in the context of fomenting sustainable development and of implementing CCIR norms and principles.

Elia Elisa Cia Alves • Alexandre Cesar Cunha Leite • Livia Picchi
In order to assess such issues, the work is organized into five parts, including this Introduction. On Section 2, we present a historical background, assessing the evolution of EEPs in the international arena, either from an analysis of how the issue evolved amid intergovernmental entities as the kind of policies implemented in pioneer countries. On Section 3, we present a brief review of the literature on IDC technical areas as a strategy of Brazilian Foreign Policy. On Section 4 we present our empirical analysis of the bilateral agreements signed with developed countries in the area of energy efficiency, seeking to identify the channels of the regulatory frameworks identified below and characterize the role of the BFP in this process. In the sequence, we give an overview of energy efficiency initiatives in pioneer countries in the adoption of such programs that have become regulatory references for Brazil, considering the period before and after the signing of the Kyoto Protocol. After that, we present a documental analysis of the Brazilian energy efficiency programs. Section 5 concludes with the final considerations. As a result, we were able to map the objectives of international cooperation, through the analysis of the priorities and dimensions established by the BFP to implement EEPs.

Historical background: the evolution of EEPs in the international arena
In the 1970s, during the two most important international oil price crises, under the banner of reducing oil demand, it became worldwidely imperative to create mechanisms that could stimulate efficiency throughout the energy chain. In this context, several countries started to rethink the ways of generating, distributing and consuming energy, coming up with several possibilities of turning energy related activities more efficient.
In this context, the first wave of EEPs in developed countries led the industrialized countries to organize themselves to form Revista Sociedade e Cultura. 2020, v. 23: e59592 Unfolding international development cooperation in energy efficiency... Elia Elisa Cia Alves • Alexandre Cesar Cunha Leite • Livia Picchi the International Energy Agency (IEA) (HUGHES; LIPCY, 2013). The objective was to guarantee the supply of energy, reducing the dependence of member countries on oil and its derivatives (RIBEIRO, 2005). Energy efficiency became a global concern and the industrialized countries have adapted their strategies and raised funds to invest in renewable energy sources (SOUZA et al., 2011).
Measures of optimization of energy management emerged in the 1980s, in countless countries, where demand programs stood out. The pioneer countries on energy efficiency programs and their implementations were Germany and the United States.
In Germany, the Heating Costs Act (HeizkostenV) was introduced in 1981, regulating the cost of heating and hot water, with higher and buildings through labeling programs, was put into force. In 1978, the policy gained national status and created the obligation for efficiency goals. In the 1980s, the country also implemented the Integrated Resource Planning (PIR), which considered that new energy efficiency programs are competing with available supply expansion alternatives. Besides that, the country had also implemented, similarly to Germany, incentive pricing regulation methods (SOUZA et al., 2009).
During the end of the 1990s, the second wave of policies started to emerge in the international and national agendas dominated by concerns about the impact of fuel combustion on climate change.
In 1992, the United Nations promoted a major event with a broad scope on the development and the environment. Rio-92 aimed to launch a program to achieve sustainable development in the 21st century, with the consolidation of action plans in Agenda 21. The Revista Sociedade e Cultura. 2020, v. 23: e59592 Unfolding international development cooperation in energy efficiency... In the meantime, in December 1997, delegates at COP3 in Kyoto, Japan, agreed to a Protocol to the UNFCCC committing industrialized countries and countries in transition to a market economy to achieve emission reduction targets. Its content was an effort to avoid the aggravation of living conditions on the planet through cooperation by setting goals for GHG reduction with the development of renewable energy technologies. In this regard, the implementation of mechanisms, such as the Clean Development Unfolding international development cooperation in energy efficiency... Elia Elisa Cia Alves • Alexandre Cesar Cunha Leite • Livia Picchi the importance of energy efficiency technologies. In this context, the concept of energy securitization began to be understood beyond security of supply and was presented as covering the dimensions related to the environment, efficiency, trade, innovation, climate change, and affordability (SOVACOOL, 2012). In this sense, EEPs started to be seen as a mean to achieve a greater goal of promoting social and economic development, through more sustainable methods and, at the same time, improving energy security, minimizing oil dependence.

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In 2002, in the context of the World Conference on Sustainable Development held in Johannesburg, energy appeared as one of the five priorities of the event, defined by the anachronistic WEHAB, water and sanitation, energy, health, agriculture and bio-diversity.
In this sense, debates began to emerge around the setting of goals and deadlines for the adoption of renewable energy, the reduction of subsidies to fossil energies and the terms of transference of technologies from developed countries to developing countries.

Bilateral international agreements to face Brazilian Foreign Policy strategies in technical sectors: some theoretical insights
Oliveira and Luvizotto (2011)  Revista Sociedade e Cultura. 2020, v. 23: e59592 Unfolding international development cooperation in energy efficiency...

Elia Elisa Cia Alves • Alexandre Cesar Cunha Leite • Livia Picchi
Considering this second type of IDC, Besharati and Esteves (2015) note that in contrast to the ODA, flows of technical and financial assistance of developing countries need to be lined up with the priorities of the recipient and best-informed countries in a transparent way. Therefore, in this context, development cooperation is not only about financial flows, but also about the exchange of people, goods, ideas and technology. Consequently, bilateral agreements negotiated by Brazil with developed countries in the context of the promotion of EEPs can be pointed as a strategy to insert the country in the international field in order to achieve one of the main goals of BFP, which is to seek development (RIBEIRO, 2014). As discussed by Oliveira and Luvizotto (2011), international technical cooperation is seen under two main aspects: as an instrument of foreign policy and to promote the socio-economic development.
The increase in technical issues on BFP influenced not only the content of negotiations, but also the process, specially regarding the growth in the number of agents that integrate the foreign policy In the sequence, we present a qualitative analysis of the agreements, in order to understand the BFP concerning the issue in question. Some factors will be examined to allow a broader understanding of energy efficiency within the framework of the agreements established by Brazil internationally. It is intended to observe (1) broad objectives related to these agreements, identify (2) some of the actions envisaged by the parties to promote cooperation, (3) governmental entities designated to act as representatives in the implementation of agreements, (4) the value invested by the parties and (5) the Brazilian actor responsible for signing the agreement.

Table 1. International Development Cooperation Agreements on the search of energy efficiency among Brazil and Developed Countries (1980-2017) Country
Year   Revista Sociedade e Cultura. 2020, v. 23: e59592

Relations of the Fe-
Unfolding international development cooperation in energy efficiency...

Elia Elisa Cia Alves • Alexandre Cesar Cunha Leite • Livia Picchi
The analysis of those agreements highlights interesting aspects of IDC. First, all developed countries, which are partners in cooperation agreements, have the highest scores in the energy efficiency sector, according to the International Energy Efficiency Scorecard published by the American Council (LINDQUIST, 2014). The scorecard analyzed the 16 largest economies in the world, according to three key areas of energy consumption: "buildings," "industry" and "transportation." Among a maximum score of 100 points, Germany had the highest overall score with 65 points. Other countries with the highest score in each category are China in building, Germany in industry and Italy in transportation. They also highlight the role of France, Italy and the European Union regarding the national efforts towards energy efficiency policies.
Second, we note that the most important partner is Germany.
Germany is a world reference in this subject, being the one with legislation and implementation of programs with the greatest success rate in terms of energy efficiency. Among the goals stablished within these agreements with Germany, it is noted that cooperation for sustainable development and Brazilian development in the region is a recurring goal, demonstrating a clear concern about the environmental issue. Besides, Lima et al. Unfolding international development cooperation in energy efficiency...

Elia Elisa Cia Alves • Alexandre Cesar Cunha Leite • Livia Picchi
However, the Brazilian Environment Ministry, for example, is not included or referred in any of the agreements analyzed. Such fact is controversial once the environmental approach is present in many acts, especially the ones negotiated from the 2000s on.
Given these findings on actors, privileged issues and instruments of action, we seek to identify how international cooperation agreements are: a) reflecting developed countries EEPs and b) unfolding in the arena Brazil and entering the agenda of domestic public policies.
In Brazil, the strategy adopted after the oil price shock was to search for new oil reserves, as well as to develop alternative sources of energy (such as through the Programa Nacional do Álcool, PROÁLCOOL). Among the power generation sector, the government increased the expansion of hydroelectric plants (SOUZA et al., 2011).
On the demand side, the country followed similar programs that were being implemented abroad. Throughout the 1980s, several issues gained visibility due to Brazilian external debt crisis. There Although we did not observe any specific international agreements in this decade that promoted the programs adopted in these pioneer countries (see Table 1), the content of the programs is very similar to those adopted elsewhere. Therefore, it is possible to infer that the initiatives in the energy efficiency of the developed to meet their strategic objectives (VILLA VERDE, 2000). This change implied the prevalence of market logic in the sector, with pervasive effects on the implementation of energy efficiency policies as national drivers of socio-economic development. As an example, an expected decentralization of the investment decision could lead to a decoupling of the interests defended by the organisms responsible for the BFP.
The Programa de Eficiência Energética (PEE) originated from this obligation and became the main financial source for energy efficiency projects in the country, with annual investments of R$ 500 million approximately (NASCIMENTO, 2015). Nevertheless, in January 2016, there was a reduction of 0.5% to 0.25% in the number of revenues to be applied by the concessionaires in these programs. The program lost half of its resources, significantly affecting the results obtained (ALTOÉ, 2017). Therefore, it is necessary to pay close attention to the damage that the reduction of these investments might have had. Energy efficiency investments are crucial regarding the search for a model of national energy development that manages to supply the needs of the society, from a sustainable perspective.
In addition to the PEE, in 2001 the National Policy for the Conservation and Rational Use of Energy (known as the Energy Efficiency Law) was established, demanding compulsory conformity assessment programs in the area of energy efficiency (GELLER et al., 2004). Another important national program that emerged in the 21st century from the Brazilian government's performance, driven by international and national concern about global warming regarding energy efficiency, was carried out by the Ministry of Industry, Foreign Trade, and Services (MDIC). The 'Brasil Mais Produtivo' Program: Offers consulting to companies focused on energy efficiency, seeking to reduce costs and waste of energy in the production process. Currently, the method to be applied is tested by 48 participants. With this, the government intends to apply the Revista Sociedade e Cultura. 2020, v. 23: e59592 Unfolding international development cooperation in energy efficiency... In the document, socio-environmental aspects were considered.

Elia Elisa Cia Alves
At the time, the country declared that its energy objectives were: [...] issues associated with the reduction of local and global impacts, increasing energy efficiency and the use of renewable sources for electricity generation, the sustainable use of water resources and the minimization of impacts on ecosystems and biodiversity are the extension of this concept, being considered in the criteria and procedures adopted. (MME, 2010, 62).
Within this perspective, Brazil has expressed the need to ensure that economic and social developments are compatible with the contribution to the protection of global climate system, and among the ways to enable this, energy efficiency measures were presented as crucial (MMA, 2012).
In the context of the Global Environment Facility (GEF), previously mentioned as a financing instrument for projects, Brazil benefited from seven projects exclusively related to energy efficiency (see Table 2), three of them established in 2016.  within Itamaraty, for exemple, the creation of an energy department at MFA. In addition, we also point a decentralization process in the coordination of actions with the objective to promote energy efficiency. Even though it is necessary the participation of several institutions, in many cases, given the nature of the subject, such a framework may lead to a lack of unity and coherence in actions.
To conclude, we reinforce the need to improve a research agenda on other technical sectors where BFP showed a greater importance and influence on public policies adopted domestically. This effort is even more relevant in the context of understanding what is politically feasible and durable in this domain, unlike the more dominant social science contributions of economics, which talks about efficiency but is largely indifferent to political or institutional constraints, as discussed by Karapin (2016).