2 Latin American Countries Are Kicking Coal and Gas to the Curb and It's Changing Everything!

While Latin America and the Caribbean have shown the slowest growth in terms of energy transition in the last decade, Brazil and Chile performed extremely well, ranking in the top 20 performers worldwide, according to the World Economic Forum’s 2024 Fostering Effective Energy Transition Report.

Both Latin American countries now have a diverse energy mix, with renewable sources contributing significantly to their energy demand. This growth is especially notable in Brazil, which for years was heavily reliant on fossil fuels. The increased focus on renewable energy has led to a significant reduction in greenhouse gas emissions and a more sustainable approach to energy production.

Chile’s success in the energy transition can be attributed to its ambitious goals, which aim to get 60% of the nation’s electricity from renewable sources by the year 2030. Brazil also has ambitious targets, with plans to increase wind power capacity to 32 Gigawatts by 2025.

Brazil and Chile's rapid expansion in green energy has sparked confidence among local and international investors. The boom in green energy is drawing attention and investment from major players from across the globe, making Latin America a key player in the world's transition to renewable energy.

One of the driving factors behind Brazil and Chile's green revolution is the need to mitigate the effects of climate change. Both countries are heavily reliant on agriculture and conservation, which have made the region highly vulnerable to climate-related shocks.

Further growth is expected to be seen in the coming years as both countries continue to develop their renewable energy resources. This expected growth is expected to have far-reaching effects on the entire Latin American region.

Renewable energy also offers unique economic benefits for countries transitioning away from fossil fuels. A study by the International Renewable Energy Agency found that large-scale adoption of renewable energy could boost the global economy by $1.3 trillion by 2025.

Today, the region is full of hope and new opportunities. Not too long ago it was the same Brazil struggling with energy production. Not too long ago the same Chile facing criticism from world powers on energy policies. However, the past few years have seen Brazil and Chile working relentlessly towards using cleaner energy sources, and now this relentless push seems to be paying off.

What we are seeing today isn’t simply a growth spurt; it is the turn of the tide. Brazil and Chile not only being great success stories of their own, but shining stars that light up a path to follow for the ones watching from across the region and beyond. These are challenging times but progress sometimes comes in bits, and with it, hope for a better tomorrow.