LAC represents 7% of the global population, 5% of global total energy supply, a significant share of future energy demand growth and rising clean energy investments (projected to reach $70 billion in 2025, a 25% increase since 2015). Yet, the LAC region attracted only 5% of global private clean energy investment in 202414 and 4% of total global energy transition capital,15 constrained by high interest rates and limited capital access. To meet energy and climate targets, total annual clean energy investment must rise to $150 billion by 2030 and continue to increase steadily through 2050. Within this, grid infrastructure alone will require around $30 billion per year until 2035, with nearly two-thirds of this amount expected to come from private capital, according to the World Economic Forum and Inter-American Development Bank’s latest report, “Advancing Latin America’s Power System Transformation”.16 Renewables growth remains uneven, and many countries still import refined fuels despite fossil fuel reserves – exposing them to price volatility and limiting value creation.Regional comparison of renewable energy mix, 2025 FIGURE 2 0%51.8% 32% 23% 22.8% 16.4% 5.8%10%20%30%40%50%60%Share of total primary energy supply Sub-Saharan AfricaLatin America and the CaribbeanEmerging EuropeAdvanced economiesEmerging AsiaMiddle East, North Africa and Pakistan Biofuels and waste Geothermal Hydro Nuclear Solar, wind, etc.and wildfires.8 Unlike global trends, energy use rose 3.8%, outpacing the 3% GDP growth9 and signalling the urgent need to scale efficiency and low-carbon solutions. At the same time, rising global demand and decarbonization pressures are driving interest in natural gas. Countries like Mexico and Argentina are proposing new liquefied natural gas (LNG) export facilities and regional import capacity could rise by 50%.10 Gas can play a transitional role as it is cost- effective and reliable, but without clear long-term emission reduction strategies, new infrastructure risks becoming a liability in meeting climate goals – locking countries into carbon-intensive assets, crowding out investment in cleaner alternatives and creating the risk of stranded assets in the future.In parallel, nuclear power is gaining momentum globally, with capacity projected to more than double by 2050 in high-growth scenarios.11 In Latin America, it contributes 2% of power and 10 countries in the region are exploring nuclear energy expansion, including major economies such as Argentina, Brazil and Mexico.12 Renewable energy capacity in the region reached 366.5 GW in 2024 (7.1% growth year- on-year), led by Brazil with 213.9 GW – 58% of the regional total – followed by Mexico with 34 GW.13 This reflects the region’s strong foundation for clean energy leadership, built on abundant solar, wind and hydropower potential. Notes: Share of renewable energy sources as part of total primary energy supply (TPES). Regional classification and country inclusion based on the 2025 Energy Transition Index. Source: World Economic Forum. Energy Transition Readiness: Latin America and the Caribbean 9

Latin America&Caribbean Energy Transition 2025