Brazil and Chile Lead Energy Transition in Latin America

The World Economic Forum reports Brazil and Chile are the only Latin American countries in the top 20 of the Energy Transition Index.

The 2024 report, “Fostering an Effective Energy Transition,” by Accenture, evaluates countries’ efforts to reduce emissions and limit global warming to 1.5°C.

Brazil ranks 12th and Chile 20th, joining leaders like Sweden, Denmark, Finland, Switzerland, and France.

The lowest-ranked countries are from Sub-Saharan Africa, the Middle East, and Southeast Asia.

The ETI assesses equity, environmental sustainability, security, and readiness for a low-carbon economy.

Latin America has strong renewable energy potential but faces political and economic instability.

However, Brazil and Chile, with stable democracies and strong energy sector regulations, attract substantial investments. Key factors include skilled labor, innovation, and solid infrastructure.

Brazil and Chile enhance energy security through diverse electrification and energy sources.

They increased renewables, integrated clean energy, implemented carbon pricing, and created supportive regulatory environments.

Brazil expanded renewable capacity with wind, solar, hydropower, and biofuels. Over 90% of Brazil’s electricity matrix and 49% of its total energy matrix come from renewable sources.

Chile generates 35% of its energy from solar and wind power, thanks to supportive public policies and active corporate participation.

The Chilean government aims for 70% renewable energy consumption and carbon neutrality by 2050.

The report highlights Chile’s improved ETI score due to increased renewable capacity, better sustainability, and reduced energy imports.

Globally, the energy transition pace has slowed. Energy sector emissions exceed 80% of total global emissions.

Download the report here.

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