Western Hemisphere 2021 Energy Landscape and Outlook

President-elect Biden has signaled that his administration will re-enter the Paris Agreement on day one and likely convene a global climate summit in the first 100 days. His administration will re-commit the United States to the climate change battle as underscored by his cabinet appointments, particularly that of John Kerry, as the first- ever special presidential envoy for climate. The climate focus could translate into a direct and specific engagement with Brazil about deforestation in the Amazon. But, here again, the challenge with Brazil will be more effectively addressed through expanded multilateralism and greater regional cooperation with neighboring countries and extra- regional partners such as the EU and even China. Yet, it is not just about multilateralism and dialogue. President-elect Biden proposes an investment strategy as part of his current climate plan. The proposed blueprint emphasizes “clean energy and resilient and sustainable infrastructure” that will subsequently “drive an innovation boom that helps us achieve the vision of a hemisphere that is secure, middle class, and democratic from Canada to Chile.”

Engaging in this strategy includes supporting well-integrated power grids from Mexico through Central America to Colombia. Furthermore, the Biden team will encourage clean energy transitions and climate change adaptations for regions that experience severe weather conditions and patterns, such as the Caribbean and the Northern Triangle. The Biden administration will also use the Clean Energy Export and Climate Investment Initiative, which provides low- cost financing to small island nations in the Pacific and Caribbean that are prospective leaders in combating the climate crisis.

These plans, while ambitious, are attainable by helping to spur greater U.S. private sector investment in the region.

INSTITUTE OF THE AMERICAS

13