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Going for the Green
The methods used to fuel present society are becoming more harmful than efficient. Oil reserves are depleting, coal and natural gas are harming public health, and these resources’ effects on our climate are intensifying more drastically each year. These harmful realities have pushed the most powerful nations to divest from fossil fuels and switch to renewable energy sources. With that said, it is often the countries that are not considered the most powerful that are not getting a seat at the table and yet are expected to contribute the most out of their resources. In particular, the southern continents of the world including Africa, Oceania, South Asia, and Latin America.
Since the Paris Agreement 2015, the United Nations and other global powers have searched for solutions to our energy consumption. Since then, solutions for alternative energy sources have been growing at a rapid pace and have been implemented in powerhouse countries which include the United States, most of the E.U., Great Britain, Russia, China, Japan, South Korea, and some countries in Oceania. However, America and other powers often assume that this technology will be as readily available everywhere as it is in their country. Although countries are excited to adopt green technology into their homes, we must remove the assumption that green technology will indeed mean a transition for the world. While developing economies in Latin America are on board with “net zero” goals by 2050, other external factors oppose the tangibility and accessibility for them to attain this, especially without a seat at the table.
Over time, fossil fuel technologies such as petroleum and coal have become less of the world’s energy percentage; however, overall usage has remained relatively high due to the continuously growing populations worldwide. Therefore, for these emissive forms of energy to decrease, it is crucial that all countries can be a part of the equation.
While some countries in Latin America are doing better in accessing this green technology than others, the overall picture paints Latin America as a“sacrifice zone,” according to Nora Hampl in an article titled Equitable energy transition in Latin America and the Caribbean: Reducing inequity by building capacity. The “sacrifice zone” refers to the massive amount of land in Latin America that will be used to extract and manufacture the green technology the United States and others are anticipating in their homes. Nevertheless, the “not in my backyard” mentality leaves Latin America on the back burner of the “global” energy transition and will face greater barriers to accessing the technology they cultivate. Although this green technology will be in the backyard of many Latin American homes, the numbers and policies do not necessarily back up the assumption that they will receive these resources by default. Considering powerful nations will extract without leaving support for these countries, they are hindering Latin America’s transition from fossil fuels.
In Mexico, the largest Latin American country, infrastructure is a major issue. Placing significant technologies like wind and solar farms requires reliable road systems and proper landmasses. This is an issue that requires not just access to it but general accessibility through land management and road construction. According to Mexico Business News, the geography of the land lacks interconnectedness and will become difficult as the country attempts to transport solar or wind energy that is not easily transported across a country like coal or oil would be. This then demands a massive investment in Mexico’s infrastructure. With very strong ties to the United States, it is important that Mexico strike negotiations that can help fund the development of clean energy in a country that is not as densely populated as the U.S., especially with large growth potential for solar and wind generation. When facing this roadblock, Mexico’s economy cannot handle the energy transition changes, at least not in the short time frame (2050) they aim for without the proper support and/or infrastructure.
Although importing and exporting renewable energy from elsewhere could be an option for Mexico, it is only more expensive in the long term and would keep Mexico out of the big conversations. Therefore, if infrastructure and finances are barriers, other powerful nations should make them a part of the conversation to find ways that they can mutually benefit. Considering that analysts in organizations like the International Trade Administration, among other sources, claim 3,670 GW of energy potential and 24,918 GW of solar energy potential, Mexico has real potential to contribute to the table so long as they are given that initial support and ability.
According to Selin Oguez on the Decarbonization Channel, the transportation sector worldwide will need an investment of $240 billion — a price tag shared by all countries worldwide. The concern is that this is only the cost of transportation. Another $2.4 trillion dollars is needed for the power sector alone (Oguez). With these large price tags, Latin American governments have some large decisions to make.
According to the United Nations, only about 20 billion dollars from Latin America and the Caribbean (LAC) have been put into the energy transition (Columbia SIPA). With LAC being only 2% of the private energy transition investment, there is a lot of political work needed if Latin American countries plan to reach net zero by 2050.
However, with notorious political corruption, it will be challenging to get enough people on board to make these investments. In Venezuela, an oil-producing country, political obstruction has fooled the nation into believing they are facing “eco-socialism” when, in reality, many illegal embargoes are constantly happening in the oil industry. Ryan C. Berg wrote a brief, The Role of the Oil Sector in Venezuela’s Environmental Degradation and Economic Rebuilding, that outlines the political regimes that prevent Venezuela from keeping up with the energy transition. Berg overviews the 2016 statement of the largest oil company in Venezuela, which stated that it would no longer report oil spills. With the dominance of oil in Argentinian economics, the government has small power over the often corrupt decisions oil companies make. He also notes that the petroleum industry holds over 99% of the exportation money coming into the country. As a petrostate, the country’s government is under the control of this industry, resulting in economic ties to China, Russia, and Cuba, which limits the support and power the United States has over Venezuela. While encountering deforestation, depletion of their natural resources, and chemical pollution, the country’s process to “net zero” does not look to be in the foreseeable future.
Unfortunately, political corruption lingers throughout most of Latin America. However, with the support of the United States and the efforts of Latin American countries, the option of building the proper infrastructure might be considered to create this green technology. To do so, however, efforts in education, government, and economy must align.
Chile, a country with incredibly strong ties (not reliance) with the United States, is an example of Latin America succeeding in the department of clean energy. The assumption that the energy transition is going to be attainable everywhere may definitely be true in Chile. Considering their more industrialized economy, Chile has set an example in building green hydrogen, solar, and wind energy with support from the United States and the Chilean government. They also have pushed for educational opportunities that have opened jobs for men and women to be employed at these facilities.
Educational opportunities are both a part of the solutions and an obstacle that must be overcome in various Latin American countries. Education not only lifts the economy but will also be essential considering these growing industries will need a workforce. Since overreliance on another country may not be the best solution, it will be important for Latin American governments to push for an internal workforce in clean energy. According to a KPMG analysis, the number one thing stopping countries in Latin America from fixing their infrastructure is a lack of funds, followed by a “lack of a long-term infrastructure plan” (KPMG). Additionally, the differences between these countries’ private and public sectors impede proper communication and progress in the clean technology industries.
At the same time, it is important to emphasize that overreliance on external powers is also not the solution to equitable transitions. Latin American countries that are doing “better” often lack control over the money coming to fuel their transition, which results in dependence on powerhouse countries that support them in affording it. Ecuador, for example, has the benefit of the United States favoring its transition under SEE: Sustainable Energy for Ecuador. By allowing the United States to finance the transition, Educador is left reliant on the U.S. to be able to continue developing their country while the United States continues to benefit from Ecuador’s resources (USAID, Ecuador). These resources include oil, agricultural production, and minerals such as copper and gold (Our World Data, Ecuador). However, in terms of recent technology, they have a growing hydroelectric industry that interests countries like the United States. As this industry continues to grow, Ecuador must continue to be a beneficiary of the industry that is occurring in their backyard. Ecuador, although reliant, makes an excellent example of increasing its presence at the table through programs like SEE. This reliance is beneficial but close to a fine line that the country needs to ensure is not crossed. The resources they generate must still benefit the renewables ratio in Ecuador if they plan to reach their goals.
As we move forward, governmental and private sectors must make serious efforts to collaborate in the energy transition within the country. The government can do so by providing educational opportunities in institutions to create the workforce to run these private industries as well as have some level of support from large private companies to switch their focus to green technology. This can ensure that the “long term infrastructure plan” that so many Latin countries feel there is a lack of adequate implmentation.
To ensure the energy transition is equitable and attainable for developing nations in Latin America, global support will be necessary, but more importantly, internal support in government and private sectors to fund the education and legislation that could help Latin America become less dependent on other nations for these goals.
Even in the United States, struggles for equitable access to clean technology require communities to put policies in place to ensure all homes can transition. Therefore, as powerful Western nations set the stage for this transition, they must be sure the countries (various of which are in Latin America) where they are getting the resources and factories to produce this energy receive their part of the bargain and have equal access to this technology. It is not promised that Latin America will be on track for net-zero emissions, but the data shows it has the potential to do so. Therefore, it will be essential that the places where extraction for this transition occurs are given the same access to the energy they are producing and a seat at the table when making global negotiations regarding their land. In developing curriculum and making investments in Latin American countries, they too can become a monolith for the energy transition.
Works Cited
Berg, Ryan C. “The Role of the Oil Sector in Venezuela’s Environmental Degradation and Economic Rebuilding.” CSIS, 12 October 2021, https://www.csis.org/analysis/role-oil-sector-venezuelas-environmental-degradation-and-economic-rebuilding. Accessed 29 January 2024.
“The Changing Face of Infrastructure in Latin America.” KPMG, 2021, https://assets.kpmg.com/content/dam/kpmg/pe/pdf/kpmg_changing_infrastructure_LatinAmerica.pdf. Accessed 29 January 2024.
Hempl, Nora. “Equitable energy transition in Latin America and the Caribbean: Reducing inequity by building capacity.” https://pdf.sciencedirectassets.com/778771/1-s2.0-S2667095X21X00037/1-s2.0-f04500a54&rr=849e6d7d0bbc313d&cc=us.
“Keys to Success for Wind Energy in Mexico.” Mexico Energy Partners, https://mexicoenergyllc.com.mx/blogs/mexico-energy-insights/keys-to-success-for-wind-energy-in-mexico. Accessed 28 April 2024.
“Mexico — Renewable Energy.” International Trade Administration, 5 November 2023, https://www.trade.gov/country-commercial-guides/mexico-renewable-energy. Accessed 28 April 2024.
Oğuz, Selin, and Bruno Venditti. “Breaking Down the Cost of the Clean Energy Transition.” Decarbonization Channel, 11 October 2023, https://decarbonization.visualcapitalist.com/breaking-down-the-cost-of-clean-energy-transition/. Accessed 29 January 2024.
Ritchie, Hannah, and Max Roser. “Ecuador: Energy Country Profile.” Our World in Data, 2022, https://ourworldindata.org/energy/country/ecuador. Accessed 29 January 2024.
Saadi, Fadl H., and Nathan S. Lewis. “Relative costs of transporting electrical and chemical energy.” Energy and Environmental Science, no. 3, 2018. Publishing, https://pubs.rsc.org/en/content/articlelanding/2018/ee/c7ee01987d.
SUSTAINABLE ENERGY FOR ECUADOR. USAID for the American People, https://www.usaid.gov/sites/default/files/2023-03/Energy%20Fact%20Sheet%20-%20PDF%20508%20compliant.pdf.
Velasco, Perla. “Mexico’s Energy Sector Infrastructure Outlook.” 2023. Mexico Business News, https://mexicobusiness.news/energy/news/mexicos-energy-sector-infrastructure-outlook.
