Sustainable Energy in Latin America: Regional Development Through the CDM

Abstract

Objectives: In this paper, 1100 projects in Latin America are analysed as initiatives to mitigate climate change and increase sustainable energy production. Methods/Statistical Analysis: In our analysis, we have imported the data from the available databases about CDM projects. Projects have been grouped by region, country, and type of source. Findings: It was concluded that the region's hydro electrical projects have obtained relevant sustainable financing due to the region's rich capacity for generating power and its particular geographical conditions, which encourage the development of sustainable energy projects. However, many political, social and economic obstacles to this were also found. This paper is expected to contribute to the promotion of an alternative energy industry and the private participation in the development of sustainable energy projects in different sectors in the region. Improvements: This paper proposes several alternatives that could help improve the synergy among the development of sustainable energy projects, the Clean Development Mechanism (CDM), and the Kyoto Protocol leading to grow new sustainable projects based on carbon economy, considering the impacts on climate change. Financing mechanisms to develop sustainable energy projects should be both profitable and sustainable and this is why the CDM should play an essential role for increasing the offer of sustainable projects as a means to assess the Kyoto Protocol's efficacy.