OBELA Analysis

The Paris agreement, signed in 2015, is so far the most ambitious agreement developed among nations to combat climate change. This agreement seeks to keep the global temperature level below 2°c compared to the pre-industrial levels,

The actions taken by Latin American governments are insufficient to slow progressive climate change. The region will be one of the geographical areas most affected economically and socially by this fact.

Faced with the current climate scenario, developing countries should rethink how much they are doing to fight climate change, because, although they are not the most polluting nations in the world, they will be the most affected by it.

The global change of the energy matrix gained momentum in the 2010s thanks to technological advances for electricity generation with renewable energies; international agreements in favor of the environment; and climate change.

Latin American countries are in the process of changing the global energy matrix and have had several advances. The COVID-19 pandemic paralyzed the world and the economy. Latin America was no exception and it seems that this may have slowed down renewable energies.

The energy transition in Latin America is underway. Government incentives and continued Chinese investments and loans will be key to its development.

Over the past year there has been a generalized increase in inflation around the world. The reasons for this are, on the one hand, the structural characteristics of each particular market and, on the other, the effects of fiscal, monetary and regulatory policies.

The economic contraction and slow recovery in production indicate that the demand for gas as a source of energy to power industry and electricity generation has not put pressure on the market.

Gas is an input for industry and power generation; higher international gas prices may increase overall production costs and lead to higher inflation.