The Paris Agreement as a New Driver of the Energy Transition in Latin America: The End of the Fossil Fuels Paradigm?

Until the adoption of the Paris Agreement, the international climate change legal regime did not provide for specific greenhouse gas reduction commitments for Latin American countries. With the voluntary adoption of greenhouse gas reduction commitments by Latin American countries under the Paris Agreement, the question arises whether such commitments mark the end of the participation of fossil fuels in the region’s energy system, and what regulatory mechanisms will contribute to such a transition. Based on an analysis of the international climate change regime, the Nationally Determined Contributions (NDCs) presented by Latin American countries and the theory of regulation, this research aims to contribute to answering the above questions. Projections indicate that in the next decades, the consumption of hydrocarbons in Latin America will grow exponentially and in parallel to the energy demand in the region. To counterbalance this trend, the NDCs prepared by Latin American countries in compliance with the Paris Agreement contain regulatory mechanisms to reduce greenhouse gas (GHG) emissions, including economic incentives to promote renewable energy and energy efficiency measures. The success of these measures requires engaging the private sector and civil society in the common goal of reducing greenhouse gas emissions, and to recognise the key role of governance in this endeavour.