Energy Transition Readiness:Latin America and the Caribbean W H I T EP A P E R Images:Getty Images Contents Foreword Executive summary 1About the Energy Transition Readiness Assessment (ETRA) 2Context 3Energy transition in LAC3.1LAC in the global context 4Lessons and solutions from and for the region 5The way ahead Contributors Endnotes Disclaimer This document is published by theWorld Economic Forum as a contributionto a project, insight area or interaction.The findings, interpretations andconclusions expressed herein are a resultof a collaborative process facilitated and ©2025 World Economic Forum. All rightsreserved. No part of this publication maybe reproduced or transmitted in any formor by any means, including photocopying Foreword The World Economic Forum’s EnergyTransition Index 2025 shows that the globalenergy landscape is undergoing a profoundtransformation. For Latin America and theCaribbean (LAC), this transformation is not Three strategic questions will shape this journey: 1.Where does the region stand in its energytransition and what are the implications of global 2.How can the region better leverage its vastenergy advantage to drive stronger, more Roberto BoccaHead, Centre for Energy andMaterials; Member of the LAC stands at a defining moment in the globalenergy transition. The region holds some of theworld’s most favourable structural conditionsfor energy transition leadership – from abundantrenewable resources to critical mineral wealth 3.How can countries harmonize progress andscale success across borders – learning from This paper answers these questions with data-driven analysis and perspective, drawing on the2025 Energy Transition Index (ETI) by the WorldEconomic Forum and the Energy TransitionReadiness Assessment (ETRA), to guide boldexecution: meeting ambitious energy targets,advancing policy reform, scaling private investment, To do so, the region will need to overcome long-standing structural challenges such as fragmentedpolicies, infrastructure bottlenecks and gaps ininnovation, education and finance. The progress David RableyGlobal Energy Transition With energy demand set to rise and globalcompetition for investment intensifying, the regionhas a unique opportunity to strategically shapea more resilient, inclusive energy future thatpropels economic growth, improves sustainability The opportunity is clear: LAC can transform itsabundant resource advantages into long-term Now is the time to act with ambition andcollective ambition and coordination. Andrés RebolledoSmitmans Executive summary Latin America and the Caribbean (LAC) has someof the world’s most favourable conditions andpotential for clean energy leadership, but realizingthis promise depends on converting structuraladvantages into system-wide, future-ready progressthrough reform and regional action. Its solar andwind resources are among the strongest in theworld, and renewables already account for around70% of electricity generation (with hydropowercontributing 52.5%); in transport, biofuels are twice Crucially, over the past 10 years, the region’s overallscore has barely improved – up just 1.2%, while manyother regions record significantly higher gains. Many countries in the LAC are “dual energy-dependent”, simultaneously exporting crude andcoal while importing gas and refined oil, leavingthem exposed to volatility in both pricing andsupply. Structural challenges – from infrastructure On the positive side, renewable generation capacityhas expanded to over 366 GW (gigawatts), fossilfuel subsidies have been cut by 42% since 2016,and pioneering countries such as Brazil, Uruguay,Chile and Costa Rica show how countries canprogress faster on renewables. Yet investmentlevels remain far below what is needed: despite However, regional progress remains uneven and isnot yet at the pace of global change. According tothis year’s Energy Transition Index (ETI) by the WorldEconomic Forum, which benchmarks 118 countrieson 43 indicators for energy system performance and The Energy Transition Readiness Assessment (ETRA) provides a data-driven framework to track progressand identify priorities built on the ETI. It highlights four strategic goals for the region: Goal 3 Future-proof industrial ecosystems. Goal 1 Secure, resilient and integrated systems. Goal 4 Improved efficiency and productivity. Goal 2 Diversified, low-carbon energy mix. Key findings Transition pathwaysare diverging across countriesand dimensions. ETI scores range from 44 to 67 with2025 growth rates varying from -1.8% to 5.9%. Only26% of countries advanced simultaneously in equity, System performance, which measures energysecurity, equity and sustainability, remains stable,with strong sustainability scores, though continuedmomentum is needed in equity and security. Theregion’s sustainability advantage is backed byrenewables, which make up 70% of electricitygeneration (as opposed to 49% globally) and biofuels New opportunitiesare eme