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3. availablerenewableenergysources and low-carbon growth potential Climate change has highlighted the important role of technological innovation and development, especially with respect to energy efficiency and renewable energy. Together, these sectors have the potential to decouple the region’s continued economic growth from the increase in energy consumption and the release of GHG emissions, as well as to reduce energy poverty and promote equity. Therefore, energy efficiency and renewable energy represent important avenues for progress towards truly sustainable low-carbon development. Latin America and the Caribbean has vast untapped renewable energy sources (RES) such as hydropower, solar, wind, geothermal, marine and biomass, many of which can be deployed using cost-effective and sustainable technology. The use of RES for electricity production varies greatly within the region.54 The countries with the greatest RES shares are Paraguay (75%), followed by Haiti (65%) and Guatemala (65%), while the countries with the smallest shares are Grenada (8%), Barbados (3%) and Trinidad and Tobago (0%).55 It is important to note that those countries with greater shares of RES tend to rely on large-scale hydropower that causes significant social and environmental impacts. RES for domestic energy services such as cooking, heating and cooling also have great potential; Barbados, for example, displays a widespread use of solar water heaters.56 However, most countries in the region still lack concrete and effective policies to deploy the wide range of investments required to implement RES projects. Among the identified barriers, governments’ weak institutional and technical capacities stand out, as public institutions struggle to implement policies and programmes involving RES and energy efficiency at a national level. Further barriers include the lack of economic resources; the failure of governments to prioritise RES development in favour of extending the penetration of fossil fuels; biased and incorrect beliefs about the economics of RES; the lack of research and development; the low level of private sector involvement; and the lack of dialogue between the public and private sectors and civil society. Overcoming these obstacles is an important challenge in the region. More aggressive policies to increase the share of RES in a sustainable and planned manner would enable a significant reduction of the share of fossil fuels. The Latin American and Caribbean Initiative for Sustainable Development (ILAC), created in 2002, could promote these kinds of policies. Current market conditions favour opportunities to promote the use of low-carbon energy sources: increasing electricity demand in the region, rising fossil fuel prices, more affordable investment costs for RES, growing concerns about climate change and the social preference for clean energy.57 These conditions increase the economic feasibility of clean energy and support important commitments to promote renewable energy projects across the region. For example, Nicaragua aims to produce 90% of its energy from renewable sources by 2020 and Uruguay has pledged to generate 90% of all its electricity from renewables by 2015. 16 Low-Carbon Development in Latin America and the Caribbean: Evolution, experiences and challengesPDF Image | Low-Carbon Development in Latin America
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