Brazil, Uruguay, and Costa Rica are leading the energy transition in Latin America, according to the World Economic Forum’s Energy Transition Index.
These countries rank 14th, 23rd, and 25th globally, with scores of 65.9, 63.6, and 63.5 respectively.
However, the region has made slow progress, with only a 5% increase in the score over the past decade.
Despite excelling in sustainable dimensions, Latin America’s renewable energy investment has decreased by 65% in the last 10 years.
Colombia and Mexico have dropped in the rankings, with Colombia falling from 29th to 39th place and Mexico from 52nd to 68th place.
Overall, global investments in renewable energy have increased, with US$1.3 trillion invested in 2022, a 19% increase compared to the previous year.
Latin America aims to satisfy 70% of its electricity consumption with renewables by 2030 through the “Renewables in Latin America and the Caribbean” initiative.
The WEF recommends leveraging natural resources, promoting public-private partnerships, and implementing environmental tax reforms to drive innovation and ensure long-term benefits.
The region also faces challenges in providing energy access, with 16 million people lacking electricity and 77 million lacking clean cooking systems.
Globally, only 41 countries have shown consistent progress in energy transition over the past decade.
The top ten countries leading the global energy transition index include Sweden, Denmark, Norway, Finland, Switzerland, Iceland, France, Austria, the Netherlands, and Estonia.