Net Zero in Latin America
Net Zero in Latin America – Achieving carbon neutrality by 2050 will require Latin America and the Caribbean to increase liquid biofuel production by 360%, reaching nearly 173 million liters, according to the Latin American Energy Organization (Olade).
In a technical note (.pdf) released this Monday (24), the intergovernmental cooperation agency reported that the region contributed 27% of global liquid biofuel production, with Brazil as the main player (93% of the regional market).
The experience with ethanol and biodiesel is seen as a competitive advantage, along with the availability of raw materials and agro-industrial capacity, to explore new opportunities arising from the energy transition.
At the same time, it is necessary to advance in areas such as financing throughout the entire production chain and regional cooperation in research, innovation, and certification.
“Low-carbon biofuels are emerging as a key solution for reducing greenhouse gas (GHG) emissions, especially in sectors with low electrification feasibility, such as heavy transport, aviation, and maritime transport,” states the document.
One of these markets is sustainable aviation fuels (SAF). The demand to supply the aviation sector is projected to exceed around 400 billion liters globally by the middle of the century.
“For Latin American countries, the production and supply of SAF represent a strategic opportunity. As Corsia advances, the region needs to strengthen its production capacity to supply intra-regional and international traffic,” predicts Olade.
Expansion
Between 2013 and 2023, biodiesel production in Latin America and the Caribbean grew by 163%, while bioethanol recorded a 36% increase. According to Olade, this growth reflects the sector’s dynamism and the implementation of public policies, such as the mandatory blending of biofuels in various countries.
The document also highlights the remaining challenges for the region, such as the need to strengthen regulatory frameworks for sustainability, optimize logistical infrastructure, and ensure traceability in the production chain, especially if exportation is desired.
“The sector’s expansion will be conditioned by compliance with increasingly demanding sustainability requirements in international markets. Factors such as indirect land-use change, biodiversity loss, byproduct or waste management, and potential competition with food crops represent challenges requiring attention,” it observes.
“Furthermore, the emergence of disruptive technologies and other renewable energy sources may alter the current market balance,” it warns.
