With booming agricultural and mining industries, Latin America has seen economic and human development increase exponentially in the past decade. While human capital and resources attracted foreign investors for a past few years, lately it has been the plentiful sunshine that catches the eyes of many venture capitalists.
Chile in particular has caught the “green” bug. While imported fossil fuel accounts for more than 60% of the county’s electricity production, hydroelectric and solar power plants are in high demand by the Chilean government. With the cost of solar power technology falling, Chile’s quest for affordable renewable energy is not too difficult to obtain. A trade deal with the world’s leading solar power technology manufacturer, China, is in the works.
The mining industry, which makes up about 70% of all Chilean exports, could be the key to helping the state reach its ambitious goal of increasing renewable energy by 20% before 2020. Copper excavation itself uses more than half of the energy supply, and with the demand for the metal increasing, so will the production. The global energy industry will most likely see a boost due to all the international trade.
With the realization of this potential, Chile is sure to become more active in the global marketplace, both as an investor and a purchaser. Their increased presence is sure to encourage more Latin American nations to not only “go green” for economic and environmental sustainability, but also improve their international trade situation.