Vast energy advantages, untapped potential: LAC’s clean energy leadership risks stalling without readiness, reform and regional action. Many LAC countries have significant opportunities for global energy leadership The LAC has a resource base that’s among the world’s most favourable to support a secure, equitable and sustainable energy system. –LAC has abundant fossil fuel reserves (Venezuela has the largest proven reserves worldwide,17 while Brazil is the largest oil producer in South America).18 These reserves support regional energy security and export capacity, while overall consumption remains relatively low – fossil fuels account for only two- thirds of total energy use, far below the global average of 80%.19 –Its solar and wind resources are among the strongest in the world (for instance, the Atacama desert20 and La Guajira),21 and renewables account for 70% of electricity generation, with hydropower alone supplying 52.5%.22 –Oil continues to dominate transport, yet biofuels now cover about 10% of this demand23 – nearly twice the global norm – with Brazil standing out for particularly strong adoption. –Historically, the region has contributed only 5% of global energy-related greenhouse gas (GHG) emissions since 1971, despite representing 9% of global GDP .24 –The region accounts for 25% of global critical mineral production25 and is a key global supplier of minerals essential to clean energy technologies, producing 40% of global copper and 35% of lithium.26 –Finally, its abundant renewable energy resources position the region as a key player in the global clean energy economy (e.g. with regard to green hydrogen and other clean fuels).27 However, marginal energy transition progress underscores regional challenges in leveraging this favourable energy potential. According to the ETI, 10 of 19 countries improved their scores in 2025 and 13 have advanced since 2016. Yet average scores rose just 1.2% since 2016, compared to 6.2% globally, shifting the region from slightly ahead of the global average to trailing it (Figure 3).3.1 LAC in the global context Key points –Limited progress: LAC benefits from one of the world’s most favourable energy baselines – yet its energy transition progress remains tempered, with average ETI scores rising just 1.2% over the past decade, compared to 6.2% globally. –Widening regional gaps: Transition conditions are highly uneven across the region. Country ETI scores for LAC range from some countries being in the top 20, to some in the bottom 20, with 2025 growth rates varying from -1.8% to +5.9%. Only 26% of countries advanced across all three energy dimensions, underscoring structural and institutional disparities. –Readiness scores among the lowest globally. Despite ranking third in global system performance, the region remains the second lowest scoring region in transition readiness, showing virtually no improvement year-on-year (0.04%) and a 0.8% decline over the past decade. Energy Transition Readiness: Latin America and the Caribbean 11

Latin America&Caribbean Energy Transition 2025