Uruguay, Costa Rica, and Colombia lead the energy transition in Latin America

RIO DE JANEIRO, BRAZIL – The energy transition seeks to consolidate in the world driven by the sense of urgency that climate change has caused in countries and the goals that governments and the United Nations (UN) have set for 2030 and 2050.

Over the past decade, investments in these projects have increased from US$250 billion in 2010 to US$500 billion in 2020, according to the World Economic Forum (WEF).

The latest edition of the Energy Transition Index (ETI) of that organization highlighted that in the last decade, the ranking of the best countries in the ETI remained virtually constant over the last decade with Denmark, Finland, and the United Kingdom, as the nations that most improved the performance of its energy system within the top 10 positions, within the 115 countries measured.

Through 2021, Uruguay, Costa Rica, and Colombia are the countries that stand out the most in the energy transition in Latin America and the Caribbean, with an average ETI score that remained constant in the region throughout the last decade, the WEF noted.

That is how Latin American countries ranked in the Energy Transition Index over the past year:

“The region is a leader in environment and sustainability, due to a strong installed hydropower base (…). Although the region has achieved near-universal access to electricity, the supply quality remains a challenge in many countries,” the report explains.

Despite the results and the prominence of some nations in the region compared to other countries in the world, the WEF points out that access to energy in the countries must be improved, and electricity prices must be based on the purchasing power parity of the communities.

Furthermore, although in the last ten years, at least 70% of the countries measured made progress in the dimension of access and energy security, in this same period, only 13 of the 115 had significant progress, which “demonstrates the difficulty of maintaining progress and the complexities of the energy transition”.

To make this index, the WEF brings together two equally weighted sub-indices: current energy system performance and energy transition enablement. These two aspects are composed of a transition to a more inclusive world, a sustainable and affordable energy system, and creating value for business and society without compromising the balance of the energy triangle, among others.

In 2021, the global Energy Transition Index was led by Sweden (79), Norway (77), Denmark (76), Switzerland (76), and Austria (75).

With information from Bloomberg Línea