IEA – Latin America Energy Outlook, 2023

The International Energy Agency (IEA) has released its Latin America Energy Outlook, which highlights the region's abundant natural resources and clean electricity sector. The report emphasizes the region's commitment to sustainability, with 16 out of 33 countries pledging to achieve net-zero emissions by mid-century. The IEA's assessment explores the challenges and opportunities that lie ahead for the Latin America and Caribbean region in achieving their energy goals. The report identifies the region's low-emissions electricity supply as a key asset, laying the foundation for clean manufacturing and the production of fuels such as low-emissions hydrogen. The region's expertise in sustainable bioenergy also positions it as a leader in sustainable transport fuels. Additionally, the global electrification of transport and expansion of electricity grids is driving a surge in demand for minerals like copper, lithium, rare earth elements, and graphite. The region's ample reserves of these minerals make it well-positioned to expand production to meet global clean energy needs. However, reaping these benefits will require strategic vision, robust public policies, and partnerships between governments and stakeholders. The report emphasizes the need for policies and regulations that attract investment, ensure sustainability, and promote just and equitable transitions. It also highlights the importance of overcoming energy access challenges and creating jobs in emerging clean energy sectors. The report acknowledges the continued importance of oil and gas in the region, with natural gas supplying power systems and being a key fuel for industry. Most vehicles still rely on oil, despite the prevalence of biofuels. Latin America and the Caribbean will continue to play a crucial role in supplying international oil and gas markets, even as global demand for both is expected to peak this decade. Managing this transition will require the cooperation of a broad set of stakeholders willing to adapt and innovate as local and global needs change in the coming years.