"You never learn everything you need to know." - Alicia Alonso (Cuban prima ballerina)
May 8, End Of Day
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.
How It Works: Blended Finance Meets Carbon Credit Innovation
This carbon mitigation credit, tied directly to verified emissions reductions, could become a new synthetic asset class for coal transition finance.
Just Transition Measures Were Built In
Chile’s transition is now being replicated in the Dominican Republic, with IDB Invest adapting the model for new geographies with younger coal fleets and fewer decarbonization commitments.
The compensation scheme tied to real, measurable emissions reductions shows how blended finance can be catalytic when aligned with national goals, corporate mandates, and emerging carbon markets. It’s a model that’s as much about climate finance as it is about climate leadership.
Argentina: Copper mining may be coming to Mendoza, the country’s wine-producing heartland, as economic pressure and green energy demand shift public sentiment. Governor Alfredo Cornejo is pushing for PSJ Cobre Mendocino to become the first metal mine in the province in over a decade, potentially starting production in 2028. The $560 million project faces legal and environmental hurdles but is backed by a growing consensus in favor of mining. While some activists remain opposed, recent polls show rising local support as Mendoza’s wine and oil industries decline.
Chile: Chile’s mining chief Jorge Riesco said the country sees growing regional mining positively and stressed the need to optimize operations to meet global demand, especially for copper. He noted Chile’s production has declined since 2018, citing lower ore grades, higher costs, and limited new exploration. Despite environmental concerns, he believes sustainable mining is possible and supports expanding mining across Latin America to meet the energy transition challenge.
**Brazil: **Beef exports to the U.S. jumped to 48,000 tons in April, up from 8,000 a year earlier, despite new tariffs. A U.S. cattle shortage drove demand, even with a 36.4% out-of-quota tariff. China remains Brazil’s top market, with 392,000 tons imported so far this year. Industry leaders will join President Lula’s upcoming trip to China to promote exports.
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