The World Economic Forum recently released a report highlighting Brazil and Chile as the only Latin American countries ranked in the top 20 of the Energy Transition Index. The report, titled “Fostering an Effective Energy Transition” by Accenture, evaluates countries’ efforts to reduce emissions and limit global warming to 1.5°C.
Brazil secured the 12th spot, while Chile followed closely at 20th, alongside global leaders like Sweden, Denmark, and Finland. The report also pointed out the lower-ranked countries mainly located in Sub-Saharan Africa, the Middle East, and Southeast Asia.
Latin America possesses significant renewable energy potential but grapples with political and economic instability. Both Brazil and Chile stand out with their stable democracies and robust energy sector regulations, attracting substantial investments due to skilled labor, innovation, and solid infrastructure.
Brazil has expanded its renewable energy capacity through various sources like wind, solar, hydropower, and biofuels, with over 90% of its electricity coming from renewables. On the other hand, Chile generates 35% of its energy from solar and wind power, supported by public policies and corporate engagement.
Chile aims for 70% renewable energy consumption and carbon neutrality by 2050, showcasing a positive shift in its Energy Transition Index score with enhanced sustainability and reduced energy imports.
While the global energy transition pace has slowed down, the report underlines the importance of accelerating efforts to curb energy sector emissions, which currently account for over 80% of global emissions. For more details, you can download the report here.