Funding agencies will play an important role in energy transitions in post-COVID recoveries in Latin America and the Caribbean (LAC). If “done right,” they can contribute to climate compatible growth (CCG) aligned with the Paris Agreement and the 2030 Agenda, and also achieve the target of universal access. In this study, a comprehensive document analysis was conducted to analyse how funding institutions can help overcome pre-existing gaps and vulnerabilities, and simultaneously promote equitable energy transitions and decarbonization pathways in the region.
The research findings implicate policy-making in the following ways: first, all-of-energy matrix in planning needs to be taken into account, if the projected recoveries are to be transformative and climate compatible. Second, enforceable legal and institutional frameworks that link climate and renewable energy law, with contingencies for rural and urban planning, would make it possible for local actors to take immediate action. Third, equal local access to capabilities and training can support synergies between the latest climate science, the implementation of low-carbon solutions, and cross-sectoral innovation. As a recommendation, the study proposes establishing Research & Training Centres (RTCs) at sub-national levels as an interface between climate-energy research community (local and international), climate and energy practitioners, and local communities.