AMI Report: The Road to Net Zero in Latin America

A study entitled "The Road to Net Zero in Latin America" has been released by American Market Intelligence (AMI). Weaning the world off dirty fossil fuels, a.k.a., the road to net zero emissions, is perhaps the most challenging task our society has ever faced. By 2030, it will require more than US$2 trillion in annual investments in both conventional and renewable energy, ranging from green hydrogen to LNG 1. The whitepaper focuses on region-wide trends before delving into specific investment opportunities, challenges, and roadblocks in the six main energy markets of Latin America.

Here is a quick breakdown of what investors should focus on in each market as per the market: In Brazil, a land in which individual states are larger than entire countries, the opportunities within the energy transition are diverse and geographically widespread. Among renewables, PV distributed generation continues to be an attractive segment even with the phasing out of subsidies for projects approved after 2022. Investors and operators looking to secure a favorable taxation regime through 2048 should obtain project approval from Aneel before the end of this year. The privatization of Eletrobras means there are also cheap assets for sale in the generation, transmission, and distribution space—but expect competition as foreign investors swoop in to secure projects before the presidential elections.

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