Latin America’S Struggle For Energy Independence Amid Geopolitical Tensions
Date
6/10/2024 7:00:05 AM
(MENAFN- The Rio Times) Latin America stands at a critical juncture in the global energy landscape. Region has renewable energy potential but hampered by global conflicts and internal geopolitical instability.
Analysts highlight geopolitical turmoil's significant impact, notably conflicts in Ukraine and Gaza, on the region's energy strategy.
These conflicts not only magnify the reliance on fossil fuels but also stifle the flow of investment needed for advanced renewable projects.
In 2022, the International Energy Agency (IEA ) noted a nearly 50% increase in global renewable capacity.
Yet, true transition remains a distant goal without a corresponding decrease in fossil fuel consumption and investment.
Current geopolitical instability, including Russia's aggression in Ukraine and ongoing tensions in the Middle East, drives volatility in energy prices and disrupts supply.
This directly influences Latin America's energy scenario. Vásquez emphasizes that achieving energy self-sufficiency is pivotal yet fraught with challenges.
Despite the IEA's prediction of a peak in fossil fuel demand by 2030, the reality on the ground reflects resilience in oil and gas projects globally.
Top producers exploit short-term gains from fossil fuels, hindering the transition to renewable energy despite potential gains.
The dependency on oil revenues in countries like Brazil and Mexico ties fiscal health closely to fossil fuel industries, presenting economic risks to any abrupt policy shifts.
These conditions make fossil fuels a seemingly attractive option, despite the broader global push for a transition.
Latin America's Renewable Energy Challenge
The economic landscape, marked by weakness and scant international cooperation, further strains Latin America's capacity to pivot to renewable energy.
According to the IEA, reaching Latin America 's carbon emission reduction targets by 2030 would necessitate a colossal investment of $150 billion, expected to increase fivefold by 2050.
Fatih Birol, the IEA's executive director, suggests that the region can leverage its unique position to boost local economies and secure a more stable global energy framework.
Yet, translating this potential into action is hindered by insufficient funding and weak international collaboration.
For example, the Latin American Energy Organization (OLADE ) struggles with enforcement capabilities.
Additionally, global competition from heavyweights like the U.S., China, and the EU stymies regional efforts. The road to a cleaner energy future in Latin America is fraught with obstacles.
Yet, the pursuit of an energy transition remains critical for the region's economic stability and environmental sustainability.
MENAFN10062024007421016031ID1108314865
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.