Latin America&Caribbean Energy Transition 2025

Energy transition goals: Renewable energy scale-up. Industrial competitiveness. Problem description: Coal plants account for 80% of Chile’s GHG emissions. In 2019, the government and major utilities agreed to phase out all coal by 2040. The 2020 plan targets 70% renewables by 2030 and carbon neutrality by 2050, with 11 coal plants (31% capacity) closing by 2024. Solution description: Chile’s coal phase-out combined regulatory targets, multistakeholder dialogue and just transition policies. Government, energy firms, unions and communities set closure timelines and local plans. Training, reskilling and diversification programmes opened new opportunities. Public-private financing supported green job frameworks in tourism, services and hydrogen. This inclusive approach aligned climate action with economic and social resilience. Enablers used: Regulation and political commitment: Phase-out and reconversion plan, carbon-neutrality targets, multistakeholder roundtables. Education and human capital: Technical and Vocational Education and Training (TVET) centres; Servicio Nacional de Capacitación Y Empleo (SENCE, Chile’s national training and employment service) training scholarships; Chile Valora green job qualification frameworks. Innovation: New qualification standards for emerging sectors (e.g. green hydrogen). Financial investments: Public and private funding for retraining, Programa de Recuperación Ambiental y Social (PRAS, Chile’s environmental and social recovery programme) projects and local economic diversification. Stakeholders involved: –National ministry of energy. –Ministry of the environment. –Ministry of labour and social security. –Energy companies. –Workers’ representatives and unions. –Civil society organizations. –Local governments and community councils. –International partners. Outcomes achieved: –Renewable energy scale-up through scheduled closure of 11 coal plants (31% of capacity) by 2024. –Diversification of the economy through creation of new jobs in tourism, services and green sectors. –Safeguarded labour productivity through equal treatment and health screening secured for subcontracted workers. –Workforce adaptability and competitiveness by aligning skills with green job opportunities through targeted training. Exportable lessons: –Dialogue builds legitimacy: Structured engagement with workers, companies and communities ensures equitable transition outcomes. –Reskilling is essential: Training and qualification frameworks prepare the workforce for emerging green industries. –Regional diversification sustains momentum: Local investments in alternative sectors create resilience beyond the coal economy.CASE STUDY 6 Social dialogue in coal phase-out in Chile (2019-ongoing)55 Energy Transition Readiness: Latin America and the Caribbean 27