Germany–Latin America :

Latin America is of strategic importance for Germany’s international sustainable energy policies. Sustainable energy technologies not only have a large potential market in Latin America but also offer opportunities to address some of the region’s pressing issues. Moreover, Latin America offers interesting learning opportunities. In several Latin American countries, electricity supply has traditionally been based on renewable energies – namely hydropower. In some Latin American countries, bioenergy has become an important pillar of electricity and fuel supply. New renewable energy technologies such as wind and solar energy have recently gained ground. However, the region also has large oil and gas reserves. With growing energy demand, the expansion of new renewable energies goes hand in hand with rising demand for conventional energy. Moreover, Latin America is a strong voice in global efforts to mitigate climate change. The region is exposed to some of the most severe effects of climate change in the form of droughts, glacial retreat and rising sea levels. Droughts increasingly pose an energy security challenge in Latin American countries that are highly reliant on hydropower. Three Latin American countries are of particular relevance for German efforts to build alliances for a global energy transition: Germany has established bilateral energy partnerships with the regional heavyweights Brazil and Mexico, while Argentina has taken over the G20 presidency from Germany in 2018 and will thus play a central role in shaping the global energy agenda throughout its presidency.