Climate Action
Latin America’s Green Leap
May 31, 2025
Latin America is home to the world’s largest lung, the Amazon, and 978 million hectares of forest that help regulate the global climate and supply the planet with oxygen.
But while it breathes life into the Earth, the region’s economy has struggled to catch its breath. Latin America has experienced a significant economic slowdown, growing just 2.2 percent in 2023 due to inflation, tight monetary conditions, weak global trade, and adverse weather conditions.
In the 2024 World Economic Forum Annual Meeting, Business experts and policy leaders from Latin America highlighted that this economic pause could be a turning point for building a greener, more resilient economy.
A shift is already underway. The region’s electricity is becoming significantly cleaner, with 60 percent now generated from renewable sources. Hydropower alone accounts for 45 percent, and Costa Rica stands out by generating nearly 100 percent of its electricity from renewables.
Brazil and Chile are also leading this transformation. Brazil is investing billions in biofuels and sustainable aviation fuels, while Chile is advancing its green hydrogen ambitions, aiming to become a top-three global exporter by 2040.
I think Latin America provides major potentials to the world that can be tapped into if we find the right pathway.
Luís Roberto Barroso, president of Brazil’s Supreme Court
The Frontrunner: Costa Rica
Have you ever wondered if a world powered entirely by renewable energy is possible? Costa Rica shows that it is not just a future goal, but as a present reality.
Costa Rica has been running almost entirely on renewable energy for nearly a decade. Since 2014, roughly 95 percent of the country’s electricity has come from renewable sources. In 2022, 73 percent of its generation comes from hydroelectric power, 12.8 percent from wind, 13.1 percent from geothermal energy, and about a percent from solar PV.
Costa Rica’s renewable energy success didn’t happen overnight. In the 1950s, the country made a strategic shift to renewable energy because it faced a limited supply of foreign currency and the high cost of oil imports. Costa Rican leaders chose to invest in hydropower, taking advantage of the nation’s abundant rivers and mountainous terrain.
Flexible Fuels and Forests: Brazil’s Strategy
Brazil’s green economy holds tremendous potential, and if fully realized, it could position the country as a global leader in the transition to a sustainable future. Among G20 nations, Brazil already stands out with the highest share of renewable energy. In 2023, Brazil had the highest share of renewable energy in the G20, generating 89 percent of its electricity with renewable energy.
In 2023, Brazil recorded the second-largest annual increase in wind and solar generation globally, producing an impressive 36 terawatt-hours (TWh) from these sources. The country’s vast geography provides ideal conditions for renewables: strong, consistent wind in the northeast and year-round sunlight across much of its territory.
Brazil’s northeast region — particularly states like Bahia, Rio Grande do Norte, and Ceará — has become a hub for wind energy. The region’s semi-arid climate offers one of the highest wind potentials in the world. Wind farms in this area consistently achieve capacity factors over 50%, far above the global average. As of early 2024, wind power accounted for more than 12% of Brazil’s electricity mix, and the sector continues to grow with support from government incentives and private investment.
Brazil’s solar sector has also exploded in recent years. The country surpassed 37 gigawatts (GW) of total installed solar capacity in early 2024 — making it the fifth-largest solar market in the world by capacity. This includes both distributed generation (like rooftop solar systems) and utility-scale projects.
Much of this growth has been driven by falling costs, pro-solar policies (such as net metering and tax exemptions), and the appeal of energy independence in remote and rural areas. Residential and commercial solar installations are surging, especially in regions with unreliable grid access or high energy prices.
The wind and solar sectors have created tens of thousands of jobs in manufacturing, installation, maintenance, and energy services — helping Brazil’s green transition also serve as an economic driver. As the country moves to further electrify transportation and industry, renewable energy will play an even larger role in ensuring that growth is sustainable.
Public Funds, Private Power: Chile’s Journey to Sustainability
Chile is quickly becoming a global model for renewable energy transition, backed by strong political support and public-private partnerships. Recently, the country has set bold targets: 70% of total energy consumption from renewables by 2030 and carbon neutrality by 2050.
One of the key forces behind Chile’s success is broad political support. A recent survey found that 91% of Chileans believe climate change should be a top government priority. This strong social consensus has empowered policymakers to take bold action to fight for climate change.
Chile has also effectively encouraged private sectors collaboration, especially in developing its green hydrogen sector. Chile’s National Green Hydrogen Strategy aims to incorporate green hydrogen into mining, raw materials, and other carbon-intensive local industries. With its vast renewable energy potential, Chile aims to produce some of the world’s lowest-cost green hydrogen energy.
To turn this goal into reality, Chile’s government has committed $50 million to support six projects aimed at advancing the national green hydrogen industry. In April, the Chilean Development Agency signed additional funding agreements with GNL Quintero, CAP, and Air Liquide to accelerate their green hydrogen initiatives.
A Renewable Future Within Reach
Latin America is taking bold steps toward a sustainable future, and you can be part of the movement! If you believe in a cleaner, greener world, join us by signing the Our Power, Our Planet Renewable Energy Petition. This initiative calls for stronger action on clean energy, and your signature will help strengthen our collective voice when we present it to the United Nations at COP30 in November 2025.
You can take it even further. Raise your voice by sending a letter to Lawmakers and State Lawmakers to stop rollbacks and promote renewable energy in our country.
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