Technological innovation is a cornerstone of a successful and just energy transition, with advancements in green hydrogen, offshore wind, critical minerals, electromobility, and smart grids playing a crucial role. To meet 2030 carbon reduction targets, these technologies must be rapidly developed, commercialized, and scaled while operating within legal and social frameworks that enhance decarbonization and minimize societal costs.
To explore technology’s role in Latin America’s energy transition—and the impact of a Trump presidency—the Inter-American Dialogue’s Energy Transition and Climate Program hosted a virtual panel moderated by program director Alfonso Blanco.
Jorge Rivera Staff, a nonresident senior fellow of the program and former national energy secretary of Panama, noted progress in energy transition technologies, with early-stage innovations dropping from 50 percent in 2021 to 35 percent in 2023. However, Latin America remains a late adopter, lacking the financial incentives of developed regions. To attract investment, he stressed the need for policies that ensure long-term stability while identifying short-term opportunities for clean energy expansion.
Lisa Viscidi highlighted the growing electricity demand in Latin America and the region’s unreliable energy access. She proposed two solutions: expanding power generation and upgrading transmission infrastructure. Using Ecuador’s energy crisis as an example, she emphasized that overreliance on hydropower and weak infrastructure leave countries vulnerable. Smart meters and advanced storage technologies could improve grid efficiency, but investment requires the right policy environment.
Felipe Bernal Guarín from Columbia University School of International and Public Affairs’ Center on Global Energy Policy pointed to limited access to capital and climate finance as key challenges, worsened by the recent US aid freeze. He cited three exacerbating factors in the US and Latin America. First, democratic fragility and climate denialism have led to dangerous environmental deregulation and treaty withdrawals that will cause larger carbon emissions. Next, Trump’s “National Energy Emergency” declaration will promote fossil fuel investment and environmental deregulation leading to heightened degradation. These points all occur in the exacerbating context of great power competition and countries’ prioritization energy security over sustainability.
Despite these challenges, Bernal argued that Latin America has the potential to become a clean energy leader due to its natural resources, supply chain position, and demographics. He urged engagement with the Bridgetown Initiative to reform climate finance and increase capital flows.
Holland & Knight partner Taite McDonald closed the discussion by examining how US policies influence Latin America’s access to clean technology. She noted that Trump’s transition creates uncertainty for three to six months, affecting projects that don’t align with his administration’s priorities—particularly electric vehicles. However, she clarified that existing contracts ensure some clean energy projects will continue. She also identified critical mineral supply chains as a sector likely to receive ongoing U.S. support due to national security interests and the push for abundant, cheap energy.
