Latin America's Green Energy and Mining Boom: What's Next?

Latin America is emerging as a key player in the global transition to renewable energy and the mining of critical minerals. The region's vast potential in these sectors is attracting significant investor interest.

Renewable Energy Leadership

• Over 65% of Latin America's electricity now comes from renewable sources, far exceeding the global average.
• Hydropower dominates, accounting for 45% of the region's electricity, with countries like Costa Rica and Paraguay nearly fully powered by hydropower.
• Recent investments in solar, wind, and bioenergy have diversified the energy mix, with wind and solar now contributing 17% of the region's electricity.
• Several governments have set net-zero carbon emissions targets, enhancing the region's appeal to investors.

Mining Sector Growth

• The mining sector is seeing a surge in investment due to the growing demand for critical minerals essential for renewable energy and electric vehicles.
• In the first three quarters of 2025, global mining mergers reached $30 billion, with 74% of this investment directed to Latin America.

Challenges and Opportunities

• The World Economic Forum's Energy Transition Readiness Assessment 2025 highlights strong sustainability and equity scores but notes lagging progress in energy security and enabling conditions.
• Some countries remain heavily reliant on fossil fuels, necessitating greater investment in energy infrastructure to support the shift to renewable energy.
• Despite attracting interest in mining, green energy investment in Latin America still lags behind other regions. The World Economic Forum estimates that clean energy investment in 2025 totaled $70 billion, around 4% of global investment in the sector.
• To meet projected demand growth, Latin America requires $150 billion annually in investment by 2030.

Path Forward

• To attract higher levels of investment, countries must address high interest rates, regulatory uncertainty, and streamline regulatory and licensing processes.
• Greater investment in education and skills development is crucial to bridge the persistent skills gap hindering the deployment of renewable energy.
• While Latin America and the Caribbean have made significant strides in renewable energy development and mineral mining, greater private investment will be essential to expand the region's renewable energy capacity and meet future demand.