RED 2026 - Chapter 4: Strategic sectors for the energy transition

The rural world of Latin America and the Caribbean (LAC) occupies a strategic position in the context of the global energy transition. The growing adoption of renewable sources and low-carbon fuels is reshaping energy markets and increasing the importance of resources such as solar, wind, and hydro power, as well as critical minerals and low-carbon fuels. In this context, the region—and particularly its rural areas—stands out for its abundance of these natural resources, which are key to this transformation process. This chapter examines the endowment and geographic distribution of strategic resources in LAC, as well as the importance of the extractive sectors in their economies. Based on this assessment, it analyzes the main opportunities and challenges facing the countries of the region and discusses the policies needed to position LAC as a key player in the global energy transition. It also discusses how to leverage these benefits so that they translate into positive impacts in rural areas.

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