Latin America&Caribbean Energy Transition 2025

Goal 3 Build future-proof industrial ecosystems and supply chains Why it matters: Addresses limited local value capture from critical minerals, low levels of clean tech manufacturing and weak innovation-commercialization linkages. Relevant energy transition pathways: –Innovation ecosystems and commercialization –Critical minerals, clean tech manufacturing and trade integration Regulation and political commitmentFinancial investmentsEducation and human capitalInfrastructure Innovation Introduce targeted and technology-neutral industrial policies to boost local manufacturing and value-add in critical mineralsOffer targeted incentives for important areas to scale and export financing for clean tech productsExpand science, technology, engineering and mathematics (STEM) and vocational training for clean tech manufacturingDevelop clean energy hubs linked to industrial clusters of co-located companies to leverage synergies in high-density areas of economic activity and jobs (companies in industrial clusters can share infrastructure, risks and resources to invest in a variety of clean energy solutions)Foster industry-research partnerships and partnerships between the public and private sectors to commercialize new technologies and drive early adoption Goal 4 Improve energy efficiency and productivity across sectors Why it matters: Leverages low energy intensity but addresses stagnating efficiency gains and underfunded demand-side management. Relevant energy transition pathways: –Energy efficiency and industrial transformation Regulation and political commitmentFinancial investmentsEducation and human capitalInfrastructure Innovation Enforce minimum efficiency standards across appliances, buildings, industry and transport, as well as other regulatory incentives and practical support for individuals and businesses Expand concessional finance and energy service company (ESCO) models for efficiency projects (ESCOs de-risk projects by providing upfront financing). Actively explore multilateral development bank (MDB) funding opportunities to complement government fundingLaunch workforce training programmes for energy auditing and retrofitting as well as for building efficiency gains into business processes for continuous efficiency improvements Retrofit public infrastructure and industrial facilities for efficiency gainsScale deployment of digital energy management solutions and AI-based solutions that enhance efficiency Source: World Economic Forum. Energy Transition Readiness: Latin America and the Caribbean 20