Abstract
In Latin America, the energy transition has been characterized by a shift from oil to gas as a fuel for electricity generation, as well as a significant presence of hydroelectric power and increasing diversification of renewable energy sources with the participation of biomass, solar, and wind. There is scarce participation of coal in the energy mix compared to the other regions of the world. Energy transitions in Latin America are a more complex process that refers not only to changing the energy system but also to ensuring that the transition benefits all people, including the vulnerable population. This requires addressing issues related to affordability, accessibility, and sustainability of energy production and supply. Moreover, the region faces several challenges such as low long-term economic growth, high dependence on oil revenues and raw materials in its export structure, the establishment of sacrifice zones that this dependence causes on local communities, social inequality, and limited access to public goods. By considering the interplay between the various factors, challenges, and opportunities, policymakers and stakeholders can develop more effective strategies for achieving sustainable energy transitions in the region. This book offers a thorough and insightful analysis of the challenges and opportunities related to transitioning to sustainable energy systems in Latin America. It gives insights into oil-dependent countries' problems and the urgency of tackling climate change. The diverse topics covered in the book, including geopolitics, energy trilemma, energy access, poverty, decentralization, and democratization, present a multidimensional perspective. Overall, this book provides a valuable resource for anyone seeking to understand the complex challenges and opportunities in transitioning to sustainable energy systems in Latin America.
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Notes
- 1.
The report explains that 37.7% of this financing comes from bilateral public banks, 44.3% from multilateral public banks, 2.3% from climate-related export credits, and 15.7% from private climate financing (OECD, 2022: 7). Likewise, 31% is invested in the energy sector, and of the total invested, 17% reaches the American continent, which includes the United States and Canada, so it is impossible to know the effective amount for Latin America.
- 2.
Special reference is made to Japan and the Green Transformation (GX) Plan launched in 2022, the enactment in the United States of the Chip Act and the Inflation Reduction Act in 2022, and the launch in 2023 of the European Green Deal Industrial Plan, to name just a few of the industrial policy plans associated with the green economy and decarbonization strategies toward 2050.
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Acknowledgments
Lira Luz Benites Lazaro acknowledges the financial support received from São Paulo Research Foundation (FAPESP), Grant: 2017/17796–3, and Grant: 2019/24479–0. Esteban Serrani acknowledges the financial support received from the National Agency for the Promotion of Research, Technological Development and Innovation (Agencia I + D + i), Grant: PICT 2019-02608. We express our gratitude to Professor Leandro Navarro Rocha from the Universidad Nacional de San Martin, Argentina, for his contribution to collecting and organizing the databases used in this chapter.
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Annex: Government Revenues from Non-renewable Natural Resources as a Percentage of GDP
Annex: Government Revenues from Non-renewable Natural Resources as a Percentage of GDP
Country | Non-renewable natural resources | 1990 | 2000 | 2010 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | Average 2015–2020 |
|---|---|---|---|---|---|---|---|---|---|---|---|
Latin America and the Caribbean | Total | 8.9 | 16.9 | 10.9 | 6.3 | 7.4 | 9.6 | 10.3 | 7.3 | 8.6 | |
Upstream | 8.1 | 14.4 | 9.9 | 5.5 | 6.4 | 8.4 | 9.2 | 6.3 | 7.6 | ||
Mining | 0.8 | 2.4 | 0.9 | 0.8 | 1.0 | 1.2 | 1.2 | 1.0 | 1.0 | ||
Argentina | Total | 3.8 | 3.8 | 6.0 | 4.1 | 3.4 | 3.4 | 1.8 | 2.0 | 1.5 | 2.7 |
Downstream | 2.9 | 2.3 | 1.8 | 1.9 | 1.8 | 1.9 | 1.9 | ||||
Upstream | 0.9 | 1.5 | 3.8 | 2.0 | 1.4 | 1.3 | 1.6 | 1.7 | 1.3 | 1.6 | |
Mining | 0.0 | 0.3 | 0.2 | 0.1 | 0.1 | 0.2 | 0.3 | 0.2 | 0.2 | ||
Bolivia | Total | 23.5 | 13.8 | 31.0 | 31.4 | 18.6 | 16.7 | 16.3 | 15.3 | 12.7 | 18.5 |
Downstream | 2.0 | 5.6 | 4.3 | 2.8 | 3.0 | 2.5 | 2.8 | ||||
Upstream | 21.1 | 7.9 | 23.5 | 27.1 | 13.2 | 12.0 | 13.7 | 11.8 | 11.4 | 14.9 | |
Mining | 0.3 | 0.3 | 3.2 | 1.5 | 2.4 | 2.3 | 2.5 | 3.4 | 1.3 | 2.2 | |
Brazil | Total | 4.2 | 4.6 | 3.2 | 2.8 | 3.2 | 3.8 | 6.1 | 2.7 | 3.7 | |
Downstream | 2.5 | 1.8 | 1.7 | 1.7 | 1.7 | 1.7 | |||||
Upstream | 1.7 | 2.2 | 1.3 | 0.9 | 1.3 | 3.5 | 5.6 | 2.0 | 2.4 | ||
Mining | 0.0 | 0.6 | 0.2 | 0.2 | 0.2 | 0.3 | 0.6 | 0.7 | 0.4 | ||
Chile | Total | 13.7 | 3.7 | 13.4 | 3.9 | 1.2 | 2.9 | 4.3 | 4.0 | 3.7 | 3.3 |
Mining | 13.7 | 3.7 | 13.4 | 3.9 | 1.2 | 2.9 | 4.3 | 4.0 | 3.7 | 3.3 | |
Colombia | Total | 3.3 | 7.7 | 9.3 | 6.3 | 4.1 | 4.6 | 6.7 | 7.4 | 4.3 | 5.6 |
Downstream | 0.0 | 0.8 | 0.5 | 0.8 | 0.8 | 0.4 | 0.7 | ||||
Upstream | 3.2 | 6.5 | 7.6 | 4.6 | 2.5 | 3.0 | 5.4 | 6.6 | 3.6 | 4.3 | |
Mining | 0.1 | 0.4 | 1.2 | 0.9 | 0.9 | 1.2 | 1.3 | 0.8 | 0.6 | 1.0 | |
Ecuador | Total | 25.1 | 21.1 | 33.9 | 20.1 | 18.3 | 23.8 | 30.8 | 28.0 | 17.7 | 23.1 |
Downstream | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | ||||
Upstream | 25.1 | 21.1 | 33.8 | 20.0 | 18.1 | 23.6 | 30.5 | 27.7 | 17.4 | 22.9 | |
Mining | 0.1 | 0.1 | 0.2 | 0.2 | 0.3 | 0.3 | 0.3 | 0.2 | |||
Guatemala | Total | 0.8 | 0.8 | 0.5 | 0.4 | 0.3 | 0.3 | 0.2 | 0.1 | 0.3 | |
Upstream | 0.8 | 0.6 | 0.2 | 0.1 | 0.1 | 0.2 | 0.1 | 0.1 | 0.1 | ||
Mining | 0.0 | 0.2 | 0.3 | 0.3 | 0.2 | 0.0 | 0.0 | 0.1 | 0.2 | ||
Guyana | Total | 10.9 | 10.9 | ||||||||
Upstream | 10.9 | 10.9 | |||||||||
Jamaica | Total | 6.6 | 2.5 | 0.4 | 0.5 | 0.4 | 0.1 | 0.1 | 0.1 | 0.1 | 0.2 |
Mining | 6.6 | 2.5 | 0.4 | 0.5 | 0.4 | 0.1 | 0.1 | 0.1 | 0.1 | 0.2 | |
Mexico | Total | 10.8 | 11.8 | 14.0 | 9.7 | 7.9 | 8.6 | 7.7 | 5.9 | 3.2 | 7.2 |
Downstream | 1.3 | 2.0 | −0.8 | 2.4 | 2.8 | 2.0 | 2.4 | ||||
Upstream | 9.5 | 9.8 | 14.4 | 6.8 | 4.7 | 6.0 | 7.0 | 5.4 | 2.7 | 5.4 | |
Mining | 0.0 | 0.4 | 0.6 | 0.5 | 0.6 | 0.7 | 0.5 | 0.6 | 0.6 | ||
Perú | Total | 6.0 | 4.6 | 9.3 | 3.8 | 3.0 | 4.5 | 4.9 | 3.5 | 2.8 | 3.7 |
Total | 5.7 | 2.5 | 1.2 | 0.7 | 0.8 | 0.9 | 0.8 | ||||
Downstream | 0.3 | 1.7 | 3.4 | 1.8 | 1.2 | 1.6 | 2.1 | 1.5 | 1.1 | 1.6 | |
Upstream | 0.4 | 4.7 | 1.3 | 1.0 | 2.0 | 2.8 | 2.0 | 1.7 | 1.8 | ||
Dominican Republic | Total | 1.0 | 1.1 | 1.2 | 0.6 | 0.7 | 1.5 | 1.0 | |||
Mining | 1.0 | 1.1 | 1.2 | 0.6 | 0.7 | 1.5 | 1.0 | ||||
Trinidad & Tobago | Total | 21.6 | 40.5 | 25.8 | 7.6 | 8.4 | 11.7 | 22.2 | 12.3 | 14.7 | |
Upstream | 21.6 | 40.5 | 25.8 | 7.6 | 8.4 | 11.7 | 22.2 | 12.3 | 14.7 | ||
Venezuela | Total | 39.1 | 21.3 | 15.8 | 22.4 | 20.4 | 21.4 | ||||
Downstream | 0.5 | 1.2 | 0.3 | 0.2 | 0.0 | 0.1 | |||||
Upstream | 38.6 | 20.1 | 15.5 | 22.2 | 20.4 | 21.3 |
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Lazaro, L.L.B., Serrani, E. (2023). Energy Transition in Latin America: Historic Perspective and Challenges in Achieving Sustainable Development Goals. In: Lazaro, L.L.B., Serrani, E. (eds) Energy Transitions in Latin America. Sustainable Development Goals Series. Springer, Cham. https://doi.org/10.1007/978-3-031-37476-0_1
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