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The International Energy Agency(IEA)recently stated in its first Latin American regional energy outlook report that Latin America will play a crucial role in the global energy transformation process.
The International Energy Agency stated that Brazil,Mexico,Chile,and Argentina have high-quality solar and wind energy resources;Chile,Peru,and Argentina are producing copper or lithium,which is a key mineral product for energy transformation;Paraguay and Costa Rica are world leaders in clean electricity,with almost all of their electricity supply coming from renewable energy sources.
According to the International Energy Agency,fossil fuels account for about two-thirds of Latin America’s energy structure,below the global average of 80%.In addition,hydropower alone accounts for 45%of Latin American electricity supply.According to current policies,the proportion of renewable energy in Latin American electricity supply is expected to increase from slightly over 60%to 80%by 2050.
Although Latin America currently accounts for only 8%and 7%of the global population and economy,respectively,its potential to produce low-carbon fuels and important mineral resources makes it one of the key drivers of global energy transformation.
The Director of the International Energy Agency,Birol,stated that”the Latin American region has abundant natural resources and is one step ahead in the safe and sustainable transition to clean energy”.
To achieve carbon reduction targets,renewable energy financing in Latin America needs to double to$150 billion by 2030 and increase fivefold by 2050.According to data from the International Energy Agency,in this case,the investment ratio of clean energy to fossil fuels in the region will increase from the current 1:1 to 4:1 in the 1930s.