With Brazil hosting the G20 Summit, Latin America’s renewable energy sector gains global prominence, poised to shape the future of sustainable development. New research offers critical insights into the sector’s current status and its promising projections as a pivotal force in the global energy transition.
Rio de Janeiro was chosen as the venue for the 2024 edition of the main international economic cooperation forum: the G20—a powerhouse assembly representing over 85% of global GDP. Global leaders from the world’s largest economies will convene in Latin America’s largest nation to set international priorities and discuss pressing issues that shape our shared future, from economic stability to climate action.
Under Brazil’s presidency and leadership, renewable energy has emerged as a priority on the G20 agenda. This year’s framework underscores the urgency of accelerating the global energy transition to combat climate change, secure economic resilience and bolster sustainable development.
With the world’s eyes fixed on Latin America, its renewable energy potential is brought to the forefront, with the G20 offering an invaluable platform to showcase its strengths. As global economies seek sustainable solutions, the region stands out with its abundant natural resources and a wide array of renewable energy projects. Yet, this being said, Latin America’s green energy transition still faces several challenges ahead.
In this context, a recently launched report has brought new light to Latin America’s renewable energy landscape, offering a detailed look at the region’s capabilities and future potential. The Latin America Green Energy Report 2024, developed by the Brazilian communications agency, Sherlock Communications, provides a comprehensive overview of the green energy sector across six regional markets.
This insightful and timely research outlines renewable energy initiatives, growth projections, challenges and investment opportunities, equipping global stakeholders with the insights needed to navigate the region’s energy landscape.
With the world’s attention focused on Brazil for the G20 Summit 2024, and bolstered by the strategic insights of this report, Latin America’s green energy sector stands at a pivotal moment, primed to capture new investment, forge critical partnerships and drive sustainable development on a global scale.
G20 Summit 2024: An Agenda Shaped by Renewable Energy Priorities
Since its inception, the G20 has progressively integrated renewable energy into its agenda, reflecting the increasing urgency of climate change and energy security. So much so, that the Energy Transitions Working Group was created to specifically address the global transition towards the use of clean and sustainable energy sources.
In 2024, under Brazil’s presidency, renewable energy has taken on an even more prominent role. In fact, the G20 summit 2024 has adopted the motto “Building a Fair World and a Sustainable Planet”, focusing on three priority themes, one of which is energy transition. Debates in this regard revolve around the just and inclusive energy transition, how to accelerate its financing, its social dimension and the perspectives of sustainable fuel innovation.
Key Items on the G20 Agenda
- Global Biofuel Alliance: Announced in 2023, this alliance is a major new initiative aimed at standardising and promoting sustainable biofuels. Brazil, a global leader in biofuels, has led this effort to make biofuels a viable clean energy source globally.
- Energy Efficiency Doubling Target: The G20 has introduced an ambitious target to double energy efficiency by 2030, pushing for systemic changes that heavily favour renewable energy sources to meet reduced energy demands. This specific commitment is among the most ambitious in G20 history.
- Inclusive and Just Energy Transition: This agenda prioritises strategies for a fair energy transition, with measures that support workforce transitions, skills training and financial support. Brazil’s leadership has highlighted the importance of these strategies for emerging economies like Latin America.
The 2024 edition of the summit puts distinctive emphasis on Latin America’s potential in renewable energy, recognising the region’s vast natural resources and its strategic role in the global energy transition.
Latin America’s Green Energy Landscape
The emphasis of the G20 summit 2024 on renewable energy marks a pivotal moment for Latin America’s green energy sector—one that holds the potential to not only support sustainable growth across the region but also contribute significantly to the global energy transition. From the Atacama Desert’s strong solar radiation to Brazil’s powerful river systems for hydropower and Argentina’s windswept plains, the region’s diverse geography and abundant natural resources provide ideal conditions for renewable energy projects.
Amid this landscape, Brazil stands out as a regional leader. Under President Luiz Inácio Lula da Silva, the country has put sustainability at the forefront of its energy policies, generating an impressive 89% of its electricity from renewable sources. This ambitious commitment not only makes Brazil a role model for its Latin American neighbours but also strengthens its influence on the global stage as a driving force in renewable energy.
Despite this plethora of opportunities, Latin America also faces key challenges in reaching its full renewable energy potential. Infrastructure gaps, particularly in rural areas, hinder effective energy transmission, while regulatory inconsistencies across countries delay projects and complicate investments. Limited financing is also an issue, with it hindering growth.
In a region as diverse as Latin America, where numerous factors shape the renewable energy landscape, a newly released report has emerged to bring some clarity to this complex mix, offering a comprehensive overview of the green energy sector across six key regional markets.
New Report Comes Into the Picture Illuminating Latin America’s Green Energy Path
The Latin America Green Energy Report 2024, developed by the Brazilian communications agency, Sherlock Communications, provides a detailed, country-by-country analysis across six major regional markets – Brazil, Chile, Argentina, Mexico, Colombia and Peru – highlighting each country’s progress, challenges and growth potential in renewable energy.
Regional industry experts such as Cristiano Lopes Saito at Aggreko Brazil; Estefanía González Del Fierro at Greenpeace Chile and with Peru’s former Minister of Environment, Fabiola Muñoz, among other notable figures, share their insights contributing to get a clear picture of the green industry sector across these key Latin American countries.
Interestingly, according to this insightful report, these countries are investing in wind, solar and bioenergy not only to power their own industries but also to explore exportation opportunities such as green hydrogen. In fact, it’s worth mentioning that Brazil alone will be responsible for 40% of biofuel expansion until 2028, thanks to a recent law sanctioned by President Lula in October 2024.
In a region that boasts one of the cleanest electricity grids in the world, almost 60% of its energy is currently derived from renewables, with countries such as Brazil, Chile and Mexico leading in regional renewable energy growth. Brazil, the current holder of the G20 presidency for 2024, is poised to dominate the green energy market, accounting for 58% of the projected 190 GW of new renewable capacity by 2030.
However, this being said, the region’s energy transition faces different challenges that hinder progress. The expert voices featured in the green energy report offer valuable insights to showcase not only the region’s achievements but also the areas that require strategic attention to unlock its full, long-term renewable energy potential.
For instance, in Brazil, a country with the potential to produce some of the cheapest hydrogen by 2030, a stable regulatory environment emerges as a key necessity to attract the necessary investments. If we take a look at Chile, a country that has set itself many ambitious goals, such as aiming to convert 60% of its energy consumption to renewables by 2030 we’ll find out that, as Estefanía González proclaims, the country is losing “40% of the renewable energy that’s already being produced.”
Positioned at a turning point, Latin America’s renewable energy sector now has a unique chance to capture global attention, attract investment and forge partnerships that will allow it to overcome challenges and shape its role in the energy transition.
A Defining Moment for Latin America’s Green Energy Future
As global leaders converge at the G20 Summit 2024 in Brazil, Latin America finds itself standing at a defining moment, positioned to make a lasting impact on the global energy transition. The conversations and agreements emerging from this year’s summit will determine whether the region can overcome its challenges and fully make the most of its full potential.
The insightful perspective of the Latin America Green Energy Report 2024, contributes to a deeper understanding of the region’s dynamics, bringing a clear overview of its strengths and challenges, as well as its current status and future projections.
Under Brazil’s governance, the region has the opportunity to drive forward a new era of clean energy development, leveraging its vast resources and innovative projects to meet global climate and energy goals. In seizing this moment, Latin America can transform its potential in renewables into tangible progress, paving the way for an era defined by sustainable growth, resilience and international partnerships that reinforce its role on the world stage.
