Latin America at the Crossroads: Renewables or Natural Gas in the Transition?

In the current context of the energy transition, Latin America finds itself at a crucial crossroads. The region's potential to lead the movement towards renewable energy sources is immense, and its capacity to benefit from this change is evident. However, persisting in the use of natural gas as a pillar of this transition is not only a mistake but also an obstacle that could delay the path to sustainability. Despite being promoted as a "clean" fuel, natural gas is, like coal and oil, a fossil fuel that must be left behind. What is commonly presented as an advantage of gas—its lower carbon dioxide emissions compared to other fossil fuels—is a misleading simplification. This argument ignores the fact that gas is also a significant source of methane, a greenhouse gas that is 28 times more potent than CO2 in terms of its ability to trap heat in the atmosphere. Thus, gas becomes a problematic component in the fight against climate change, and its role as a transitional solution is increasingly questionable. A recent report from the United Nations Environment Programme (UNEP) highlights that a transition to renewable energy could reduce greenhouse gas emissions by up to 80% by 2050. In contrast, if the region opts for a strategy based on natural gas, it could only achieve a 20% reduction. These figures are revealing and suggest that embracing renewable energy is the most effective way to combat climate change and achieve sustainability goals. The International Energy Agency (IEA) has issued clear warnings about the inadequacy of current government commitments to reduce greenhouse gas emissions. In this sense, it has recommended that 2035 be the deadline for phasing out gas from the electricity sector. However, in practice, the reality is more complex. Economic interests drive substantial investments in gas infrastructure, as seen in large-scale projects in countries like Brazil, Mexico, and Argentina. A notable case is Vaca Muerta, an unconventional gas and oil field that has been under development for over a decade and represents an investment of resources in an industry that needs transformation. The challenge of abandoning fossil fuels is amplified in countries that are highly dependent on them. Trinidad and Tobago, for example, faces a significant dilemma, as 40% of its GDP and 80% of its exports come from oil and gas. This economic dependency translates into resistance to change, especially when recent efforts to improve energy access have focused on subsidies for fossil fuels, as has been the case in Colombia. In contrast, the adoption of renewable energy can offer pathways to economic independence and the democratization of access to clean energy. According to UNEP, the transition to renewable energy could generate approximately 1.3 million new jobs in Latin America by 2030. In contrast, investment in gas-based energy infrastructure could generate only about 14,000 jobs. This difference is crucial, especially in a region facing unemployment rates above 7%. Given this reality, it is imperative that governments, financial institutions, and the private sector act decisively to accelerate the transition to renewable energy. Despite the challenges, this path is both possible and necessary. The history of humanity has shown that, in the face of adversity, creativity and innovation can flourish. The recent celebration of the Olympic Games in Paris is a reminder of what can be achieved with effort and dedication. Therefore, it is essential to establish high standards for the energy transition. We cannot allow natural gas to hinder our progress toward a sustainable future. Instead, we must demand an approach that prioritizes the creation of 100% renewable electricity systems, supported by storage technologies that enable efficiencies in energy management. The transition to a cleaner and more sustainable future is not just an option; it is a necessity. Every step we take toward abandoning fossil fuels and adopting renewable energy represents progress toward a more resilient, equitable, and environmentally respectful economy. The time to act is now, and it is everyone's responsibility to ensure that the energy transition is just, swift, and effective.