In Latin America and the Caribbean, a region characterised by diverse economic, political, and energy landscapes, GDP grew by 15% between 2015 and 2025, driven by Mexico, Colombia, Chile and Costa Rica, which experienced increases of between 10% and 40%.

Since 2015, clean energy investment increased by nearly 25%, reaching USD 70 billion in 2025. Chile, Colombia and Costa Rica accounted for the largest increase, given the doubling of renewable investment flowing into the three countries. Brazil played a significant role in building momentum behind clean energy investment, thanks to the county’s enabling environment for investment in small-scale solar PV and bioenergy, further accelerated by the enactment of the Future Fuel Law in 2024. Over the same period, fossil fuel investment decreased by more than 20%, to more than USD 90 billion a year, with Brazil, Argentina and Mexico accounting for almost 70% of the total.  

However, the region experienced shortages and blackouts due to   increasing intensity and frequency of extreme weather conditions. These disproportionately affected the most vulnerable households and underscored the need for a more reliable and interconnected grid. Positive examples can be found in Central American Electrical Interconnection System (SIEPAC) and in Brazil, that has been able to implement about 350 independent power transmission (IPT) with a total of 10 500 km of transmission line auctioned in 2024. Moreover, Peru and Chile also implemented IPTs, with the Peruvian government awarding 14 projects worth over USD 2 billion and Chile tendering more than 20 projects valued at USD 900 million.

Despite rising investment in renewables, Latin America only accounts for 5% of privately financed global investment in clean energy, reflecting high interest rates, lack of long-term finance and an overall increase in public debt servicing costs. These have increased fivefold over the past ten years in Nicaragua and Suriname, while Brazil and Mexico account for more than USD 55 billion dollars per year in debt servicing compared to nearly USD 90 billion in total energy investment.

Latin America has received USD 45 billion in upfront investment in green field mining for copper and lithium since 2015, highlighting its pivotal role. Chile, Brazil, Argentina, Peru, Panama and Ecuador are the main recipients of these investments. The region is keen to move up the value chain, which requires larger investment, and Argentina, Peru and Mexico are already exploring and introducing ways to reduce offshore processing.