Latin America & the Caribbean

Clean Growth

Supporting business in Clean Growth areas is a major priority for the UK Government and the opportunities in Clean Growth in Latin America and the Caribbean (LATAC) are growing at a rapid rate. Supporting Clean Growth trade between UK and LATAC is a win-win - it will help the region grow sustainably whilst reducing carbon emissions and benefitting UK low-carbon businesses.

“Let’s make this year the moment when we come together with the courage and the technological ambition to solve man-made climate change and to choose a cleaner and greener future for all our children and grandchildren.”

— Minister Boris Johnson

Market detail

    The Latin America and the Caribbean region is on the frontline of climate change^[1]. It has extraordinary biodiversity and is one of the most vulnerable to climate change. The region is a key partner for success at COP26. 

Governments in the region are responding to climate change, looking for options and partners to mitigate and adapt. Over $1 billion of climate finance^[2] has been spent on low-carbon sectors in the region since 2010 - on a range of projects to support energy transitions, prevent deforestation, develop new technologies, and improve regulation.

There are huge opportunities for UK businesses as the region builds back better from COVID-19 and attempts to navigate increases in energy demand, population growth, and urbanisation which will be exacerbated by climate change.  Looking forward, the International Finance Corporation (IFC) estimates sustainable transport investment potential in Argentina, Brazil, Colombia and Mexico could be $2.6 trillion by 2026^[3]

Some of the strongest renewable capacity growth in the world in the coming years is expected in LATAC. A recent report by Rystad Energy expects that the region’s 49 gigawatts (GWAC) of renewable capacity will skyrocket to 123 GWAC by 2025^[4] and that Uruguay will be a carbon sink by 2030^[5]. Auctions have been adopted throughout the region, giving way for some of the lowest prices and largest projects^[6] in the world, helping drive global ambition.

COP26 & NET ZERO

The UK is already well-positioned as a partner of choice on climate and energy issues, and has been deploying Prosperity and International Climate Fund programming to support host government plans. The Department for International Trade is engaged in post cross-government strategies for COP26, playing a leading role in engaging business communities and governments on setting Net Zero targets whilst displaying UK capability.

SUCCESS STORIES

• UK has been selected to support a major climate-resilient infrastructure programme in Peru, alongside a feasibility project for Green hydrogen in Trinidad and Tobago.
• Innovative floating solar solutions are being installed in the Caribbean.
• Ongoing development of new offshore wind projects in Brazil.

Opportunities for UK companies in LATAC

• Energy: Oil & Gas (decommissioning, transition), Renewables, Waste to energy.
• Transport: electric vehicles (for public and private transport networks), electric rail.
• Infrastructure: major projects that need support to be low-carbon, climate resilient and energy efficient – urban planning opportunities across the region.
• Waste & Water: opportunities for waste management + recycling, water management.
• Mining: country teams, notably in Brazil, are engaged in work to support the decarbonisation of this sector, through adoption of renewable energy sources for production and production standards.
• Agritech and food production: increasingly, LATAC countries are seeking solutions for forest management, bio security, agri-tech solutions that will lead to more food with less input and less emissions. This fits with policy considerations about deforestation and poverty alleviation.
• Chemicals: chemicals that facilitate countries’ efforts to meet or strengthen their COP-related Nationally Determined Contribution (NDC) commitments, and chemicals that demonstrably have a less negative/positive impact on the environment compared to other products.