Seizing the Green Opportunity: Transforming Latin America and the Caribbean for Sustainable Growth
Key Ideas
  • The World Bank's report urges Latin America and the Caribbean to strategically harness their abundant natural resources through institutional reforms and innovation for inclusive growth.
  • The region's comparative advantages in clean energy, biodiversity, and mineral reserves position it uniquely in the global shift towards sustainability, but decisive action is needed to capitalize on these opportunities.
  • Key sectors like land use, mining, and green hydrogen are highlighted as critical areas for transformation, with emphasis on sustainable practices, technological upgrades, and policy reforms.
  • The report underscores the importance of improving land governance, upgrading the mining sector with cleaner technologies, and developing green hydrogen capabilities to drive economic growth and environmental sustainability.
The World Bank's 2025 report outlines a strategic roadmap for Latin America and the Caribbean (LAC) to harness the global energy transition for sustainable economic growth. Collaborating with renowned research institutes, the report emphasizes the need for LAC to transform its natural wealth into inclusive prosperity through institutional reforms and innovation. While the region boasts abundant resources like vast forests, lithium reserves, and clean energy grids, effectively leveraging these assets requires a shift towards becoming 'resource smart.' LAC's clean energy mix and biodiversity offer a competitive advantage in a world moving towards sustainability, but timely action is crucial. The report highlights the untapped economic potential in sectors like land use, mining, and green hydrogen. Efficient land allocation and sustainable practices in agriculture and forestry could generate significant income while combating climate change. The mining sector, with its wealth of energy transition minerals, needs to embrace cleaner technologies and strengthen environmental safeguards to contribute positively to sustainable development. In the realm of energy innovation, green hydrogen emerges as a new frontier where LAC countries like Chile, Colombia, and Brazil are already making strides. To capitalize on the green opportunity, LAC must prioritize institutional reforms, technological upgrades, and policy interventions. Strengthening land governance, greening the mining sector, and developing green hydrogen capabilities are essential steps towards a more sustainable and economically vibrant future. By aligning with global decarbonization trends and investing in green infrastructure and innovation, LAC can lead the energy transition while fostering inclusive growth and environmental stewardship.
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