Manufacturing is one of the main money-making, job-creating sectors in Central America. The current prices of renewable energy and the adoption of efficient practices are starting to cut the path towards carbon-low manufacturing, a competitive edge that could lead to export markets.
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Green hydrogen can revolutionize the energy, manufacturing and transportation sectors in the region, making it a global hub of the so-called "energy vector of the future." However, some major challenges to its sustained deployment need to be taken into account.
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Bold and immediate action is needed for businesses and economies to leverage the transformative power of the private sector as we strive to meet our net-zero commitments under the Paris Agreement.
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There can be no global shift to renewable energy without better storage technology. New solutions such as Battery Energy Storage Systems (BESS) are emerging in the region to help build the business case for coupling this technology with renewables.
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In addition to offering various tax, customs, regulatory and other incentives for investors, free zones and industrial parks in Latin America and the Caribbean are increasingly adding another benefit to the mix: a reduced carbon footprint through self-supplied renewable energy for production.
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With greater access to much-needed global capital, Latin America and the Caribbean can become the world’s leading renewable energy hub, taking advantage of ample sunlight and available land.
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