In LAC, the energy sector is responsible for nearly half of greenhouse gas (GHG) emissions, the primary cause of global warming.
TOWARD A JUST ENERGY TRANSITION
CAF supports countries in the region toward a just energy transition through increased energy generation using clean technologies, the electrification of demand, improvements to the electrical infrastructure, and the promotion of sustainable urban mobility.
Projects financed by CAF could reduce 1.2 million metric tons of CO₂ equivalent (tCO₂eq) annually—about 1.5% of the emissions from electricity generation in the beneficiary countries—and generate positive impacts on employment, income, health, and quality of life.
The progressive increase in global temperatures and its negative effects on the environment and human health make it necessary to transform the energy sector, which is one of the main sources of GHG emissions both in LAC and globally.
This transformation—referred to as the energy transition—entails reducing GHG emissions associated with both energy production and consumption, while ensuring that all countries can continue to generate wealth and well-being, and that the costs and benefits of the transition are distributed equitably.
Between 2014 and July 2025, CAF approved 63 credit operations in at least 20 countries, totaling USD 8.218 billion, to promote energy transition actions and projects involving greater electricity generation using clean and economically competitive technologies; electrification of energy demand; and improvements in electricity transmission and distribution infrastructure.
Likewise, between 2018 and 2024, CAF approved 49 credit operations aimed at improving urban mobility and reducing GHG emissions associated with passenger transport in 9 countries across the region.
CONTRIBUTION IN NUMBERS
CAF’s support to expand electrification, improve the quality of electricity service, and decarbonize energy consumption and mobility can generate aggregate benefits in terms of economic growth and environmental preservation, as well as improvements in the socioeconomic conditions of households in the region, given its potentially positive effects on employment, income, health, education, and overall quality of life.
In particular, CAF’s actions represent a meaningful contributionto the energy transition in LAC by supporting an expected annual reduction of 1.2 million tons of CO2equivalent (tCO2eq) in GHG emissions. This contribution corresponds to 1.5% of total annual emissions from electricity generation in the countries benefiting from these projects. At the same time, CAF’s support has been instrumental in ensuring that the energy transition is just and tailored to the specific needs and resource availability in each country.
Highlights
In LAC, the energy sector is responsible for nearly half of greenhouse gas (GHG) emissions, the primary cause of global warming.
The energy transition is one of the key measures that countries must implement to meet the goals of the Paris Agreement.
The transition to a sustainable energy sector must be just: its timeline and the specific measures each country implements will depend on its capabilities, available resources, and its need to promote greater well-being.
Between 2014 and 2025, CAF approved 63 credit operations totaling $8.218 billion in 20 countries across the region to support energy transition actions and projects.
These actions can generate aggregate benefits in terms of economic growth and environmental preservation, as well as improvements in the socioeconomic conditions of households in the region, given its potentially positive effects on employment, income, health, education, and overall quality of life.
