The International Energy Agency (IEA) has released a special report highlighting Latin America and the Caribbean’s potential to play a significant role in the global transition to clean energy. This comprehensive analysis, titled the Latin America Energy Outlook, emphasizes the region’s wealth of energy and mineral resources and its clean energy leadership.
Latin America and the Caribbean already boast one of the world’s cleanest electricity sectors, generating 60% of their electricity from renewables, which is twice the global average. Countries like Brazil, Mexico, Chile, and Argentina have abundant wind and solar resources.
Additionally, it possesses significant reserves of critical minerals essential for clean energy technologies, with reserves of lithium, copper, and silver. This clean energy foundation could support sustainable mining and processing of these critical minerals.
However, the IEA’s report highlights the need for supportive policies and international cooperation to tap into the region’s energy potential fully. Despite many countries’ commitments to reducing emissions and using renewable energy, there is a policy implementation gap in the region. Without stronger policy measures, the region is projected to continue relying on fossil fuels for various sectors.