Challenges For Renewable Energy Projects In Latin America

Originally published in Financier Worldwide, October 2007

According to a tendency report from the United Nations Environment Programme, investment capital flowing into renewable energy worldwide climbed from $80bn in 2005 to a record $100bn in 2006. Contributing to such a wave is not only a growing consumer awareness of climate change, but also and most importantly the introduction of new legislation and mechanisms of financial and economic support and incentive by local governments. Latin America has attracted 5 percent of this total, most of which has been used to fund development of hydro-electric power generation or ethanol producing plants. More recently, sponsors interested in the development of large ethanol producing facilities have announced substantial investments in the region, primarily in Brazil.