Latin America Doubles Down on Electric Vehicles, Powered by Chinese Imports and Local Policy Push. Electric vehicle adoption in Latin America is (late, but fast) taking off. While still a small share of the global EV market, the region saw sales volumes and market shares more than double in 2024. This growth was fueled by a combination of favorable import policies, rising fuel prices, and affordable Chinese models.

Chile has become a proving ground for climate finance innovation, launching the first transaction to use monetized emissions reductions from early coal plant closure to lower the cost of capital for renewable energy. This landmark pilot, led by IDB Invest and energy utility Engie Energía Chile (EECL), demonstrates how a pay-for-success blended finance model can align corporate, national, and climate goals in emerging markets.

Chile Pilots New Model for Coal Exit with Carbon-Linked Finance. Chile is setting a precedent for emerging markets with a first-of-its-kind financial instrument that links early coal plant retirement to concessional borrowing costs. In partnership with IDB Invest and Engie, the country closed two coal plants nearly two years ahead of schedule, replacing them with a 151MW wind farm in Calama, and creating a blueprint for future transition finance.