A floating island of solar panels in Chile.

A floating island of solar panels in Chile. (AP)

LatAm in Focus: Latin America's Potential for a Green Recovery 

By Elizabeth Gonzalez

IHS Markit’s Steven Knell and Escopo Energia’s Lavinia Hollanda explain how the region can turn the current moment into an opportunity to develop renewable energy.

“If we [Brazilians] destroy the environment, everybody is watching.” —Lavinia Hollanda

In terms of new sustainable technologies, Hollanda highlighted Brazil’s comparative advantage in developing green hydrogen, though she noted that it will likely be used in the electricity sector before it is safe enough to use in transportation. The economist also emphasized taking the long view given the 20- to 30-year lifespan of such energy infrastructure projects, which would help close critical infrastructure gaps in the South American giant but could force the country to be stuck with outdated technologies.

The energy transition won’t be a zero-sum game, however, and both experts agreed traditional fossil fuel development, especially natural gas, will likely continue to firm up the region’s energy security at the same time that more renewables are deployed. Regulatory support will be key, not least of which is the phasing out of billions of dollars in oil subsidies. If governments redirected those funds toward renewables, Knell says “there could be twice as many jobs” supported by the sector.

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Elizabeth Gonzalez produced this episode. The music in this podcast was performed at Americas Society in New York. Learn more about upcoming concerts at musicoftheamericas.org.

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