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Energía para el Futuro

Unlocking Green and Just Hydrogen in Latin America and the Caribbean

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Latin America and the Caribbean (LAC) is prepared to play a pivotal role in the global energy transition through the adoption of green hydrogen (GH2). With an abundance of renewable energy resources, the region has the potential to become a leader in GH2 production and utilization. The Inter-American Development Bank Group (IDBG), which includes the IDB, IDB Lab, and IDB Invest, recognizes the significance of this opportunity and has developed several GH2 studies, roadmaps, and strategies financing for projects in the region.

Based on our years of experience, the IDB has compiled the information and knowledge we have gathered from research and project financing in relation to GH2 and its derivates in Latin America

and the Caribbean (green ammonia and green methanol) in one publication entitled “Unlocking Green and Just Hydrogen in Latin America and the Caribbean”. The report provides comprehensive insights into the technical, supply, demand, regulatory, and financial aspects of GH2 development in the region, as well as outlines the IDB’s support in the inclusion of GH2 within the sustainable energy transition.

Unlocking the Technical Potential of Green Hydrogen: Key Takeaways

  1. GH2, produced through electrolysis powered by renewable energy sources, offers a clean and versatile alternative to traditional fossil fuels: LAC boasts abundant solar, wind, and hydropower resources, making it an ideal candidate for large-scale GH2 production. The IDBG is actively engaged in pilot projects, feasibility studies, and the development of the enabling framework for investment to flow, including the development of certification and safety standards to address the technical challenges associated with GH2 adoption. These efforts aim to ensure the efficient production, storage, and distribution of GH2, enabling its integration into existing energy systems.
  2. Robust policy and regulatory frameworks are crucial to facilitate the widespread adoption of GH2 as a competitive alternative for decarbonization processes: The IDB, in collaboration with LAC governments, actively supports the development of national GH2 strategies that provide a clear roadmap for investment and innovation, as well as the design and implementation of the first hydrogen projects. These strategies encompass a favorable investment climate, long-term planning, and harmonized certification systems to ensure the quality and safety of GH2 production. By creating an enabling environment, the IDB aims to attract private sector investments and drive the growth of the GH2 industry in the region.
  3. The establishment of a sustainable GH2 market requires significant investments in infrastructure: The IDB recognizes the need for innovative funding mechanisms and is working to mobilize public and private sector investments in GH2 projects. This includes the development of hydrogen production facilities, storage systems, and transportation networks. By leveraging its expertise and partnerships, the IDBG aims to catalyze infrastructure development and create economic opportunities while advancing the region’s energy transition.

Unlocking economic opportunities…

The adoption of GH2 in LAC not only contributes to environmental sustainability but also unlocks economic opportunities. The region’s competitive advantage in low-cost renewable energy production positions it as a global GH2 exporter. By capitalizing on this advantage, the region can stimulate economic growth, enhance energy security, and create high-quality jobs in the GH2 sector. The IDBG is actively fostering public-private partnerships, facilitating access to finance, and promoting capacity building to unlock these economic opportunities and drive sustainable development in the region.

…And Just Hydrogen Production

As LAC embarks on the GH2 revolution, the IDBG emphasizes the importance of a just and inclusive energy transition. The IDBG engages with local communities, indigenous peoples, and other stakeholders to ensure their meaningful participation in GH2 projects and to address potential socio-economic and environmental impacts. By integrating social, environmental, and economic considerations, the IDBG aims to create a sustainable GH2 market that benefits all segments of society. Furthermore, it promotes the responsible use of natural resources. In this line, IDBG encourages the use of seawater desalination or reuse of wastewater as an input for the generation of H2 from electrolysis.

The IDB is supporting the development of GH2 infrastructure, fostering policy frameworks, and unlocking economic opportunities in the region. By embracing a just and inclusive approach, LAC can lead the global transition to a greener and more sustainable future. The IDB, in partnership with governments, industry, and communities, is playing a pivotal role in shaping this transformation and paving the way for a prosperous GH2 industry in LAC.

To delve deeper into the IDBG’s vision and initiatives for GH2 development in LAC, we encourage you to explore the publication titled “Unlocking Green and Just Hydrogen in Latin America and the Caribbean” published by the IDBG in collaboration with external authors from prestigious consulting firms actively working in GH2.

Blended Financing for Early Adopters

Additional to the specific GH-2-oriented support the IDBG provides, it also facilitates financing GH2 solutions through blended-finance mechanisms. This road started in 2022 with the approval of the Green Climate Fund’s sustainable mobility facility, which includes a US$50 million component of grant resources to deploy vehicles to grid and hydrogen solutions in the transport sector.

Furthermore, the IDBG has a regional facility with the Green Climate Fund that will support the development of sustainable mobility, including electric mobility and green hydrogen for transport. The project, which includes financing up to US$450 million, will receive US$200 million in concessional and non-reimbursable financing from the GCF.

Last but not least, the IDBG has approved the first financial facility for GH2 development in Chile,  for US$ 400 Million, the first of its kind in LAC.


Ariel Yepez

Ariel Yépez es Asesor Economista Principal en la Vicepresidencia de Sectores y Conocimiento en el Banco Interamericano de Desarrollo (BID). Previamente se desempeñó como Gerente del Sector de Infraestructura y Energía y como jefe de División de Energía en el BID. Antes de su incorporación al BID, se desempeñó como economista senior de Energía en el Banco Mundial y como Director de Planeación Económica en Petróleos Mexicanos (PEMEX). Asimismo, ocupó distintos puestos en la Secretaría de Hacienda en México, incluido el de Director General de Políticas de Ingresos, Derechos, Precios y Tarifas. Ariel también ha impartido cátedra en la Universidad Nacional Autónoma de México y en el Instituto Tecnológico Autónomo de México. También ha publicado artículos y libros en temas de infraestructura y energía, regulación, finanzas públicas y organización industrial. Su más reciente libro ¿Cómo consumen energía los hogares? Evidencia en América Latina y el Caribe, ha sido publicado en inglés, español y portugués. Tiene un doctorado en economía por la Universidad de Chicago y una maestría en Economía por el Colegio de México. Ariel también recibió el Premio Nacional de Economía del Banco Nacional de México.

Marcelino Madrigal Martínez

Dr. Marcelino Madrigal is currently the Chief of the Energy Division of the Inter-American Development Bank (IDB). In his more than twenty years of experience in the energy sector worldwide, he has served as a former commissioner of the Regulatory Commission in Mexico, as senior energy specialist at the World Bank, as a research professor at the Technological Institute of Morelia and as a member of the national system of researchers in Mexico. Additionally, he was the Chairman of the International Committee of the World Forum of Regulators in 2018 and vice president of the Ibero-American Association of Regulators (ARIAE). Dr. Madrigal has a bachelor's, master's, and a doctorate degree in electrical engineering from the Morelia Institute of Technology, the Autonomous University of Nuevo León, and the University of Waterloo in Canada. He specializes in the operation, planning, market design, regulation, and projects related to the transition and decarbonization of the electric energy sector. He has published more than 10 peer-reviewed technical articles and was the recipient of the Outstanding Young Engineer Award from the Institute of Electrical and Electronics Engineers (IEEE).

Christiaan Gischler

Christiaan Gischler, Lead Energy Specialist, Inter-American Development Bank (IDB) Mr. Gischler is the focal point for sustainable energy within the Inter-American Development Bank (IDB), with over 15 years of experience in the energy and environmental sector in Latin American and the Caribbean (LAC). Currently, he is leading several initiatives in renewable energy including geothermal power, energy efficiency, bioenergy and climate change mitigation. Mr. Gischler is actively working and promoting sustainable energy projects and programs throughout LAC. Mr. Gischler has developed several co-financing instruments with several donors using climate financing such as the Global Environment Facility (GEF), Clean Technology Fund (CTF) and more recently with the Green Climate fund (GCF) in climate change mitigation, for energy projects in the LAC. He is the practice leader for Geothermal Power and for the Caribbean region in the IDB Energy Division. Mr. Gischler has designed, developed and executed projects and financial initiatives for over US$ 3.7 billion promoting sustainable energy in LAC. He has also participated in several conferences, promoting sustainable energy as well as policy & regulation to promote renewable energies, energy efficiency and carbon emission reductions. Prior to joining the IDB, Mr. Gischler worked for National Commission for Environment in Chile and for the private sector in air pollution control equipment, reuse of waste and energy efficiency. He has taught courses in environmental engineering in Chile and Sweden. Mr. Gischler holds two Engineering degrees in chemical engineering and biotechnological engineering from the University of Chile and a Masters in Science degree in environmental engineering and sustainable infrastructure from the Royal Institute of Technology of Sweden.

Cecilia Correa

Cecilia Correa is a Sector Specialist in the Energy Division of the Inter-American Development Bank and responsible for the sector's project portfolio in Uruguay. She is a mechanical industrial engineer graduated from the Faculty of Engineering of the University of the Republic of Uruguay and has a master's degree in energy systems from the University of Melbourne, Australia. She has more than 10 years of experience in the energy sector in several countries and in the different stages of generation, transmission, demand, regulation, and energy planning projects. She has participated in projects that promote the implementation of new technologies for energy transition such as electromobility, demand management, and green hydrogen.

Veronica R. Prado

Veronica R. Prado es Especialista Senior de la División de Energía del Banco Interamericano de Desarrollo, basada en Paraguay. Ingresó al Banco en 2013 y desde entonces ha trabajado en el desarrollo y supervisión de proyectos de generación, transmisión y distribución, eficiencia energética y energías alternativas en la región. Sus principales áreas de trabajo incluyen energías renovables, eficiencia energética, movilidad eléctrica, diseño de políticas y estrategias de descarbonización, reforma regulatoria y mecanismos de financiamiento innovadores en el sector energético. Antes de su nombramiento actual, se desempeñó como economista investigadora para el Departamento de Economía de la Universidad de Oxford, donde desarrolló e implementó intervenciones en los campos de desarrollo económico, gestión de recursos naturales, infraestructura y energía en países africanos y del sudeste asiático. Asimismo, desempeñó varios roles en el Programa de las Naciones Unidas para el Desarrollo (PNUD) en Nueva York, en el Banco Mundial y en el Centro de Estudios Estratégicos e Internacionales (CSIS) en Washington, DC. Veronica posee una maestría en Economía de la Universidad de Oxford, Inglaterra.

Eric Daza

Eric Daza is an innovation consultant for the Energy Transition in Latin America and the Caribbean (LAC) in the Energy Division of the Inter-American Development Bank (IDB), where he works on issues of digital transformation of the energy sector, energy storage systems and in public policies and operations to promote green hydrogen in LAC. Prior to his work at the IDB, Eric worked for the private sector in Latin America and Europe as a researcher and teacher on issues related to the technical and economic regulation of the energy sector. He has more than 15 years of experience in the electricity sector working in different companies and consultancies. Eric has a PhD in Energy from the Federal University of Santa Maria (UFSM), a master's degree in Economics from the University of Vale do Rio dos Sinos, a master's degree in Energy Business Management from the Spanish Energy Club - ENERCLUB, a Master's degree in Electrical Engineering from UFSM, an MBA in Business Management from the Escola Superior de Propaganda e Marketing and a university degree in Electrical Engineering from UFSM.

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