How Latin America and the Caribbean are faring in the energy transition

Two countries from Latin America were placed in the top 20 of 120 nations in a new energy transition ranking.

In the World Economic Forum’s (WEF) latest energy transition index, which looks at system performance and readiness, Brazil and Chile came 12th and 20th.

Performance covers issues related to equity, sustainability and security, and readiness focuses on the enabling environment, such as policies and the regulatory framework, infrastructure, innovation, education and human capital, and finance and investment. 

“Brazil’s long-term commitment to hydropower and biofuels, combined with recent strides in solar energy, has set the country on the path to becoming a leader. Its focus on planning and policy instruments, as well as strengthening institutions, has built the right ecosystem for energy transition momentum,” according to the WEF.

The other countries in the region ranked in the index were Costa Rica (30), Uruguay (33), Colombia (35), Paraguay (42), El Salvador (46), Peru (47), Panama (51), Mexico (57), Bolivia (66), Ecuador (74), Argentina (82), Guatemala (94), Venezuela (95), Dominican Republic (97), Trinidad and Tobago (99), Honduras (106), Jamaica (110) and Nicaragua (114).

The research highlights that despite Latin America and the Caribbean’s reliance on hydropower and recent build-out of solar and wind capacity, the region has seen the slowest growth.

The WEF adds that the region’s energy transition “momentum has levelled off, with improvements in sustainability from increased renewable energy contributions partially offset by declining equity due to gas prices.”

The index is available in the Documents box in the top-right corner of the screen.

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