More than a quarter of Latin America’s primary energy currently comes from renewable energies, twice the world average. Even in some countries such as Costa Rica and Brazil, renewable energy sources represent 99% and 83% respectively of their electricity matrix.

According to an article developed on the IDB Invest blog, many countries in the region still depend on non-renewable energy, and therefore bold and immediate actions are needed so that companies and economies can harness the transformative power of the private sector while striving to meet their net zero emissions commitments under the Paris Agreement.

The region has natural resources such as abundant sunlight and available land, and could become the world’s leading renewable energy hub, as long as greater access to global capital and best practices are guaranteed. IDB Invest is committed to partnering with the private sector to increase climate action in the region, implementing mitigation and adaptation strategies through tailored financial and non-financial solutions. In that direction, IDB recently granted a loan of up to 300 million dollars to ENGIE Energia Peru for the construction of a 296.4 MW wind farm south of Lima. Meanwhile in Barbados, the bank provided advisory services to guarantee the Environmental and Social Impact Assessment for the development of Renewstable Barbados, a 50 MW solar generation facility with green hydrogen and lithium-ion battery storage.