According to a recent UNCTAD report, Brazil has been a magnet for international investments in renewable energy.
Between the years 2015 and 2022, Brazil attracted $114.8 billion. This substantial sum represents 11% of the total investment in emerging economies.
The report breaks down the investment into three pivotal areas. First, research and development in clean technology got a major share.
Second, the electric vehicle battery sector also saw substantial investments. Finally, sustainable agriculture practices have been another key focus area.
Brazil’s rich natural assets make it an ideal place for renewable energy projects.
According to the Ministry of Mines and Energy, renewable sources power 83% of the nation’s energy grid.
Furthermore, the country still holds enormous potential for growth in this sector.
In just the first four months of this year, Brazil increased its energy capacity by 3.3 gigawatts.
Nearly half of this came from wind energy projects; solar energy contributed around 39%.
This diversified growth indicates Brazil’s commitment to renewable energy.
Following Brazil, Vietnam ranks second in attracting renewable energy investment, pulling in 10% of the total, or about $106.8 billion.
Other notable countries making strides are Chile, India, and Kazakhstan. Within Latin America, Brazil and Chile are the frontrunners.
They are followed closely by Mexico, Colombia, and Argentina in attracting foreign capital for renewable projects.
These countries have collectively made Latin America a significant player in the global renewable energy landscape.
Background
Historically, Brazil has been a pioneer in the renewable energy sector.
For decades, the country has relied heavily on hydroelectric power, which remains a significant part of its energy mix.
However, Brazil faced energy shortages in the early 2000s due to drought conditions. These events triggered a national dialogue on diversifying energy sources.
As a result, the government launched incentive programs for wind and solar energy.
Brazil’s leadership in renewable energy has also influenced other countries in Latin America to invest in green technologies.
Private sector participation and international partnerships have been crucial in this journey.
The country’s renewable energy success serves as a model for emerging economies looking to transition to cleaner energy options.