Energy Transition Readiness: Latin America and the Caribbean

The report finds that while Latin America and the Caribbean (LAC) possess world-leading renewable resources and critical mineral wealth, their energy transition progress has stagnated, with average Energy Transition Index (ETI) scores rising only 1.2% since 2016. The region faces significant 'transition readiness' gaps, particularly in finance, infrastructure, and innovation, attracting only 5% of global private clean energy investment in 2024. To overcome these barriers, the document proposes four strategic goals: building resilient and integrated systems, diversifying the energy mix, future-proofing industrial ecosystems, and improving energy efficiency. It highlights successful case studies from Chile, Brazil, Uruguay, and others as models for scaling renewables, electrifying transport, and implementing just transition policies.

• Latin America and the Caribbean (LAC) possesses strong structural advantages for clean energy, including renewables accounting for approximately 70% of electricity generation (with hydropower at 52.5%) and biofuels covering about 10% of transport demand.
• Despite these advantages, the region's energy transition progress has been marginal compared to global trends; the average ETI score increased by only 1.2% since 2016, whereas the global average rose by 6.2%.
• The region suffers from a severe investment gap, attracting only 5% of global private clean energy investment in 2024, while annual requirements are estimated at $150 billion by 2030.
• Energy security is hindered by aging infrastructure and grid inefficiencies, with transmission and distribution (T&D) losses averaging 13.5%, which is higher than the global average of 10.2%.
• The region is a critical global supplier of minerals for clean energy technologies, producing 40% of the world's copper and 35% of its lithium, and accounting for 25% of global critical mineral production.
• Transition readiness is a major bottleneck, with the region scoring 31.1% below the global average for finance and investment, and experiencing declines in education, human capital, and innovation over the last decade.
• Energy equity remains a challenge as 78 million people in the region still lack access to clean cooking fuels, although fossil fuel subsidies have been reduced by nearly 42% as a share of GDP since 2016.
• The report identifies four strategic goals for the region: securing resilient and integrated systems, diversifying the low-carbon energy mix, future-proofing industrial ecosystems, and improving efficiency and productivity.

APA

World Economic Forum (2025). Energy Transition Readiness: Latin America and the Caribbean. https://reports.weforum.org/docs/WEF_Latin_America&Caribbean_Energy_Transition_2025.pdf

Chicago

World Economic Forum. Energy Transition Readiness: Latin America and the Caribbean. 2025. https://reports.weforum.org/docs/WEF_Latin_America&Caribbean_Energy_Transition_2025.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=Energy Transition Readiness: Latin America and the Caribbean |date=October 2025 |url=https://reports.weforum.org/docs/WEF_Latin_America&Caribbean_Energy_Transition_2025.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2025energy, author = {{World Economic Forum}}, title = {{Energy Transition Readiness: Latin America and the Caribbean}}, institution = {World Economic Forum}, year = {2025}, month = oct, url = {https://reports.weforum.org/docs/WEF_Latin_America&Caribbean_Energy_Transition_2025.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }