Across many indicators, the Latin America and Caribbean region stands out for its extraordinary endowment of natural resources – both fossil fuel and renewable energy – and its history of policy making that has notably delivered one of the cleanest electricity sectors in the world. The expansion of renewable energy technologies such as hydropower and bioenergy, initially driven by an emphasis on energy security, has more recently been propelled by a deepening commitment to sustainability. Sixteen of 33 countries in the region have pledged to reach net zero emissions by mid-century or earlier, and most have presented updated and increasingly ambitious climate targets tied to the 2015 Paris climate agreement.Our Latin America Energy Outlook, the International Energy Agency’s (IEA) first in-depth and comprehensive assessment of Latin America and the Caribbean, builds on decades of collaboration with partners across the region. In support of Latin America and the Caribbean's energy goals, this report explores the opportunities and challenges that lie ahead, providing insights into the ways in which the region’s energy future and major global trends are deeply intertwined.A key asset for region is its low-emissions electricity supply. This lays the groundwork for other key aspects of energy transitions, including extensive clean manufacturing of industrial goods and the production of fuels such as low-emissions hydrogen. Resources and deep expertise in sustainable bioenergy also position the region to lead on sustainable transport fuels – at home and worldwide. Meanwhile, the global electrification of transport and expansion of electricity grids is generating a boom in demand for critical minerals such as copper, lithium, rare earth elements and graphite. The region’s ample reserves of these minerals place it in pole position to expand production to supply the needs of the global clean energy transition, with additional potential to move up the value chain into refining and processing.