Latin America and the Caribbean: Pioneers in the Global Energy Transition

Latin America Energy Outlook 2023 report cover
Latin America Energy Outlook 2023

The latest IEA report, Latin America Energy Outlook, shines a spotlight on Latin America and the Caribbean, underscoring their pivotal role in the global energy landscape amidst rising geopolitical uncertainties and rapid energy transitions. This region, rich in energy and mineral resources and a leader in clean energy, is poised to significantly influence both regional and global energy sectors.

A Resource-Rich Region with a Clean Energy Legacy

The Latin America Energy Outlook, IEA’s first comprehensive analysis covering all 33 countries in the region, reveals a treasure trove of resources. From renewables like hydropower, wind, and solar to oil, gas, and vital minerals, the region is well-equipped to contribute to global energy security and clean transitions. This report is a culmination of extensive collaboration with regional governments, experts, and stakeholders, building on IEA’s long-standing engagement with the area.

Renewables account for 60% of the region’s electricity production, double the global average, with hydropower leading the charge. Countries like Brazil, Mexico, Chile, and Argentina are also home to some of the best wind and solar resources globally. Furthermore, the region is a significant bioenergy player and a leading biofuel exporter.

A Potential Global Energy Powerhouse

Latin America and the Caribbean hold about 15% of the world’s oil and natural gas resources. The region is also crucial for producing minerals essential for clean energy technologies, boasting about half of the world’s lithium reserves and significant proportions of copper and silver. This clean electricity supply is the backbone for sustainable mining and processing of these materials.

IEA Executive Director Fatih Birol highlights the region’s potential in the new global energy economy, emphasizing the need for supportive policies and international cooperation to fully harness this potential.

Challenges and Opportunities Ahead

Despite the promise, the report identifies a policy implementation gap. While 16 of the 33 countries have committed to net-zero emissions by mid-century, current policies still heavily rely on fossil fuels, especially for road transport. However, if pledges are realized, renewables could meet all new energy demands this decade, increasing oil exports and driving low-cost, low-emissions hydrogen production. This shift would also double long-term revenues from critical minerals to nearly USD 200 billion.

Key Actions and Investments for a Sustainable Future

To reduce energy-related CO2 emissions, the report suggests four key actions: ramping up renewable energy, electrifying industry and transport, advancing energy efficiency, and improving access to clean cooking solutions. Investment in clean energy projects needs to double by 2030 to USD 150 billion and rise fivefold by 2050.

Towards a Greener Future

The region, already engaged in the Global Methane Pledge and the Glasgow Pledge to halt deforestation, is on a promising path. The IEA is committed to supporting these transitions, as Latin America and the Caribbean stride towards a secure and fairer global energy system.

Annual Planetary Temperature Continues to Rise

More than 500 scientists from 61 countries have again measured the annual planetary temperature. The diagnosis is not good.

Wildfire strikes Bandipur national park, one of India’s prime tiger reserves. Image: By NaveenNkadalaveni, via Wikimedia Commons

August 17, 2020 by Tim Radford, Climate News Network (CC BY-ND 4.0)

LONDON, 17 August, 2020 – Despite global promises to act on climate change, the Earth continues to warm. The annual planetary temperature confirms that the last 10 years were on average 0.2°C warmer than the first 10 years of this century. And each decade since 1980 has been warmer than the decade that preceded it.

The year 2019 was also one of the three warmest years since formal temperature records began in the 19th century. The only warmer years – in some datasets but not all – were 2016 and 2015. And all the years since 2013 have been warmer than all other years in the last 170.

The link with fossil fuel combustion remains unequivocal: carbon dioxide levels in the atmosphere increased by 2.5 parts per million (ppm) in 2019 alone. These now stand at 409 ppm. The global average for most of human history has hovered around 285 ppm.

Two more greenhouse gases – nitrous oxide and methane, both of them more short-lived – also increased measurably.

This millennium has been warmer than any comparable period since the Industrial Revolution.”

Robert Dunn, of the UK Met Office

The study, in the Bulletin of the American Meteorological Society, is a sobering chronicle of the impact of climate change in the decade 2010-2019 and the year 2019 itself. It is the 30th such report, it is signed by 528 experts from 61 countries, and it is a catalogue of unwelcome records achieved and uncomfortable extremes surpassed.

July 2019 was the hottest month on record. Record high temperatures were measured in more than a dozen nations across Africa, Europe, Asia and the Caribbean. In North America, Alaska scored its hottest year on record.

The Arctic as a whole was warmer than in any year except 2016. Australia achieved a new nationally average daily temperature high of 41.9°C on 18 December, breaking the previous 2013 record by 1.6°C. But even Belgium and the Netherlands saw temperatures higher than 40°C.

For the 32nd consecutive year, the world’s alpine glaciers continued to get smaller and retreat further uphill. For the first time on record in inland Alaska, when measured at 26 sites, the active layer of permafrost failed to freeze completely. In September, sea ice around the Arctic reached a minimum that tied for the second lowest in the 41 years of satellite records.

Catalogue of Extremes

Global sea levels set a new high for the eighth consecutive year and are now 87.6mm higher than the 1993 average, when satellite records began. At a depth of 700 metres, ocean temperatures reached new records, and the sea surface temperatures on average were the highest since 2016.

Drought conditions led to catastrophic wildfires in Australia, in Indonesia, Siberia and in the southern Amazon forests of Bolivia, Brazil and Peru. And around the equator, meteorologists catalogued 96 named tropical storms: the average for 1981 to 2010 was 82. In the North Atlantic, just one storm, Hurricane Dorian, killed 70 people and caused $3.4bn (£2.6bn) in damage in the Bahamas.

“This millennium has been warmer than any comparable period since the Industrial Revolution. A number of extreme events, such as wildfires, heatwaves and droughts, have at least part of their root linked to the rise in global temperature,” said Robert Dunn, of the UK Met Office, one of the contributors.

“And of course the rise in global temperature is linked to another climate indicator, the ongoing rise in emissions in greenhouse gases, notably carbon dioxide, nitrous oxide and methane.” Climate News Network

Martinique, Guadeloupe Suffer Effects Of Toxic Chemical

The French Caribbean islands of Martinique and Guadeloupe suffer the effects of a toxic chemical. Ninety-five (95%) of the population of Guadalupe and ninety-two (92%) of the people in Martinique are contaminated with the insecticide Chlordecone (called Kepone). Local adult residents have traces of the chemical in their blood.

Chlordecone is a chlorinated chemical similar to DDT and an endocrine disruptor. It can interfere with hormones and cause disease. The World Health Organization (WHO) describes it as “potentially carcinogenic.”

The pesticide is known to cause cancer. Large tracts of soil are infected, as are rivers and coastal waters.

The US banned Kepone in 1975 after several hundred workers suffered illness after contamination at a factory in Hopewell, Virginia. These French Islands continued using Kepone until a ban in1993.

French lawmakers designated the state as the main culprit. French President Emmanuel Macron recently called it an “environmental scandal” and said the state “must take responsibility.”

Tourists view these islands as idyllic sun, sea, and sand destinations. However, few visitors are aware of the chronic pollution problem.