New Horizons for Renewable Energy in Brazil and Mexico
Brazil and Mexico, identified by Bloomberg in 2023 as two of the top 15 most polluting countries in terms of energy emissions, face a crucial moment: is it necessary to shift to other forms of renewable energy? The transition towards renewable energies has become a fundamental pillar for sustainable development in Latin America, with Brazil and Mexico playing key roles in this process, both in their international context and in their trends towards a more sustainable world. Both countries are at a crossroads of opportunities and challenges, where fostering investments in clean energies and the development of specialized talent are crucial for their long-term competitiveness and sustainability. This article explores how investments in renewable energies are redefining the energy markets and the need to focus on the development of these industries.
The transition towards renewable energies has become a fundamental pillar for sustainable development in Latin America, with Brazil and Mexico playing key roles in this process, both in their international context and in their trends towards a more sustainable world.
New Horizons for Renewable Energy in Brazil and Mexico
Brazil and Mexico, identified by Bloomberg in 2023 as two of the top 15 most polluting countries in terms of energy emissions, face a crucial moment: is it necessary to shift to other forms of renewable energy? The transition towards renewable energies has become a fundamental pillar for sustainable development in Latin America, with Brazil and Mexico playing key roles in this process, both in their international context and in their trends towards a more sustainable world. Both countries are at a crossroads of opportunities and challenges, where fostering investments in clean energies and the development of specialized talent are crucial for their long-term competitiveness and sustainability. This article explores how investments in renewable energies are redefining the energy markets and the need to focus on the development of these industries.
Brazil: Sustainable Leadership in Progress
Brazil leads the energy transition in Latin America, despite slow regional progress. With initiatives like “green bonds” and a focus on doubling its clean energy production, Brazil seeks to consolidate itself as a benchmark for sustainability. However, challenges such as oil exploration in the Amazon present contradictions in its energy policy.
New long-term developments in solar energy may potentially compete with investments in wind power. Utility-scale solar energy in Brazil increased by 40.9% in 2021, while distributed solar generation increased by 84%.
Along with Uruguay, this country stands out in the World Economic Forum’s (WEF) global energy transition index, due to the implementation of significant alternatives to promote renewable energies. In 2023, solar energy, including distributed generation, became the second largest source of electricity in Brazil, surpassing wind energy. New long-term developments in solar energy may potentially compete with investments in wind power. Utility-scale solar energy in Brazil increased by 40.9% in 2021, while distributed solar generation increased by 84%. Investments in large-scale solar energy projects that have already been approved amount to more than $20 billion. An additional $1 billion has been invested in distributed solar generation since 2012. This amount is expected to increase exponentially in the coming years.
Mexico: Challenges and Opportunities
Mexico also hosts enormous potential to develop renewable energy projects, thanks to its high solar irradiation, wind capacity, and geothermal sources. Despite policy changes and permit delays, there has been an increase in the participation of Mexican and American companies interested in U.S. renewable energy technologies and in expanding operations in the country. Mexico’s Energy Transition Law and the General Law on Climate Change aim for a 35% electricity target from clean sources by 2024, showing a commitment to energy diversification and carbon footprint reduction. Furthermore, in Mexico, more than 30 percent of the industrial sector has begun to take voluntary steps to decarbonize and become more efficient in their operations and processes, unveiling a promising future for renewable industries in the country.
Mexico’s Energy Transition Law and the General Law on Climate Change aim for a 35% electricity target from clean sources by 2024, showing a commitment to energy diversification and carbon footprint reduction.
The Role of Specialized Talent
The transition to a sustainable energy future in Brazil and Mexico requires not only financial investments but also the development of specialized talent. Professionals trained in renewable energies, energy efficiency, and sustainable management are essential to overcome current challenges and seize innovation opportunities in the energy sector.
Brazil and Mexico stand out in the transformation towards renewable energies, with Brazil leading as one of the world’s cleanest electric markets and Mexico facing challenges but with significant renewable potential. Both countries are committed to expanding renewable projects, through substantial investments and the development of regulatory frameworks for sustainable solutions. This convergence underscores a unique opportunity to strengthen regional cooperation, attract international investments, and lead in the global energy transition, ensuring a greener and more sustainable future for Latin America.
