The energy transition in Latin America has the structural problem that has been dragging on in the region for ever: the lack of capital. To solve this, external financing has been the main driver of the change in the energy matrix. 

The main financiers are the Export-Import Bank of China, the China Development Bank, the Inter-American Development Bank (IDB), the Development Bank of Latin America (CAF) and the U.S. Agency for International Development, in that order.

It should be noted that the Caribbean Basin is mainly financed by the USA and South America by China. Although the U.S. finances renewables more than dirty energy, in terms of amounts it does not compare with the Asian economy. External financing for renewables is vital for Latin America's energy transition. It should not be forgotten that Latin America is a disputed territory and the control of renewables is key.

La pasada COP26, celebrada en Glasgow, Escocia, buscaba establecer acuerdos que definieran los compromisos de reducción de gases de efecto invernadero, y así hacerle frente al deterioro climático. Con propuestas poco tajantes y casi nulos planes de acción.

Según el último Informe sobre Cambio Climático, publicado del IPCC, es necesario mantener el límite de aumento de temperatura a 1.5° C para evitar la pérdida irreversible de biodiversidad. Sin emabrgo, la poca cooperación de los países que más contaminan y las promesas sin planes de acción mantienen a la deriva la cuestión climática global.

Los países que más contribuyen a la crisis climática, a través de la deslocalización de la producción y la exportación de petróleo, son precisamente los que se niegan a comprometerse a bajar sus emisiones y a pagar por daños; lo que deja a los países afectados por el cambio climático en una posición aún más vulnerable y sin la posibilidad de mitigar sus efectos.

In May 2021, President Joseph Biden released his proposed 2022 U.S. budget, outlining spending levels for the next ten years. The program has been modified during congressional negotiations, as the real cost of some policies could be excessive.

The constant deficit of the US government has not favored the economic growth of the country. The increase in public debt at an average annual rate of 7% between 2010 and 2021 translated into an annual GDP growth rate of 1.9% in the same period. According to estimates in the congressional resolution, its growing debt issuance will continue.

If approved, the question is not just whether these expenditures and investments have an impact on national income and are capable of stimulating private investment in the midst of the post-pandemic recovery.