Latin America&Caribbean Energy Transition 2025

Regional opportunities and challenges summary TABLE 1 Opportunities Challenges Renewable energy potential Exposure to climate volatility Expanding renewables capacity Exposure to fossil fuel price volatility High renewables share in power mix Fragmented and inconsistent regulation47 Diversified clean energy sources Weak regional cooperation Strong biofuel use in transport Ageing infrastructure and poor resilience Large critical minerals reserves Low R&D and slow commercialization Relatively low import needs* Limited capital flows Strong export capacity* Credit and investor confidence constraints Low(er) energy and emissions intensity High cost of capital Public backing for clean energy48Rate of energy efficiency improvements Growing political and regulatory commitment Job growth in clean energy sectors Notes: *For select economies. Source: World Economic Forum.Exposure to climate volatility Renewable energy potential Exposure to fossil fuel price volatility Expanding renewables capacity Fragmented and inconsistent regulation47 High renewables share in power mix Weak regional cooperation Diversified clean energy sources Ageing infrastructure and poor resilience Strong biofuel use in transport Low R&D and slow commercialization Large critical minerals reserves Limited capital flows Relatively low import needs* Credit and investor confidence constraints Strong export capacity* High cost of capital Low(er) energy and emissions intensity Slow rate of energy efficiency improvements Public backing for clean energy48 Growing political and regulatory commitment Job growth in clean energy sectorsChallenges Opportunities Energy Transition Readiness: Latin America and the Caribbean 18Notes: *For select economies. Source: World Economic Forum.