On 18 July the governments of Chile and Uruguay signed agreements with the European Union (EU) related to raw materials and renewable energy.
Analysis:
The agreements were signed on the sidelines of the summit between the Community of Latin American and Caribbean States (Celac) and the EU in Brussels, Belgium. Chile’s government led by President Gabriel Boric signed a memorandum of understanding (MoU) with the EU on the sustainable development of raw materials, while Uruguay’s government led by President Luis Alberto Lacalle Pou signed an MoU related to green energy. Argentina’s government led by President Alberto Fernández also signed a similar MoU in relation to renewable energy the previous day. These agreements form part of the EU’s push to invest in renewable energy, energy efficiency, and sustainable development in the region.
- Chile and the EU signed an agreement to deepen cooperation in the sustainable development of the raw materials value chains necessary for the clean energy and digital transition, particularly lithium. According to Ursula von der Leyen, president of the European Commission, the EU’s executive branch, the agreement “will contribute to EU security of supply and create good jobs in Chile”.
- The European Investment Bank (EIB) also granted a €100m (US$112.4m) loan to support Chile’s growing renewable hydrogen industry and to “help the country meet its target of achieving carbon neutrality by 2050”.
- Uruguay and the EU signed an MoU on renewable energy, energy efficiency and renewable hydrogen, which von der Leyen said was “in line” with Uruguay’s and the EU’s “ambitious climate goals”.
- On 17 July, Argentina signed an MoU on climate and green energy with the EU. This agreement focused on renewable energy, hydrogen and methane emissions abatement, as well as ensuring that the clean energy transition is “socially just”. President Fernández celebrated the signing of the MoU, tweeting that, “for the benefit of our growth and generating employment, we can be reliable suppliers in the transition to clean and renewable energies.”
Looking Ahead: The agreements were made as part of the EU’s Global Gateway initiative, which was announced on 17 July and through which the EU will invest over €45bn in Latin America and the Caribbean until 2027. Investments will be concentrated on sectors and value chains including clean energy, critical raw materials, health, and education.
