Energy Cooperation with Latin America and the Caribbean
The Commission provides support to Latin America and the Caribbean to help countries in these regions address the most urgent energy challenges: stepping up energy security and the fight against climate change while promoting sustainable economic development. Improved access to low carbon technologies and greater energy efficiency play a key role in this context.
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Different programmes and instruments are at the Commission's disposal to provide targeted support in the field of energy to partner countries.
Latin America Investment Facility
Launched in May 2010, the main purpose of the Latin America Investment Facility (LAIF) is to promote additional investments in infrastructure by mobilising additional financing and encouraging beneficiary governments and public institutions to carry out investments which could not be financed by the market or the development financial institutions alone.
It operates via non-refundable financial contributions to support loans to partner countries from the European Investment Bank (EIB) and other financial institutions. The types of operations include:
- investment co-financing in public infrastructure projects;
- loan guarantee cost financing;
- interest rate subsidies;
- technical assistance; and
- risk capital operations.
The Commission committed a total of €125 million for the 2009-13 period.
Euro-Solar Regional Cooperation Programme
Launched in May 2006, the EURO-SOLAR Programme is a pioneering initiative aiming to reduce poverty by making renewable energies available to remote rural communities without access to electricity.
This involves the installation of 600 generating kits consisting of photovoltaic panels and, in some cases, a back-up wind generator. They rely solely on renewable energy sources.
It is estimated that over 300 000 people living in around 600 villages will benefit from the measure. They currently lack a connection to the electricity grid.
A total budget of €34.9 million, co-financed by the Commission (80%) and the beneficiary countries (20%), was made available for the 2006-11 period.
EUROCLIMA Regional Cooperation Programme
Adopted in 2009, the EUROCLIMA Programme was put in place to help Latin American countries engage in action to deal with climate change by building expertise among decision-makers and scientists. Specifically, the programme aims to:
- reduce vulnerability to climate change;
- reduce social inequalities caused by global warming;
- reduce the socio-economic impact of climate change; and
- reinforce regional integration dialogue.
To achieve this, activities include knowledge sharing, structured dialogue, coordination of actions and fostering synergies.
The programme focuses support on the poorest populations.
The Commission allocated €5 million over the 2010-13 period.
ACP Investment Facility
Defined in the ACP-EU Partnership Agreement signed in June 2000 in Cotonou, the ACP Investment Facility provides finance for investment projects in African, Caribbean and Pacific (ACP) countries. Recognising the importance of affordable and sustainable sources of energy for broader economic development and poverty reduction, the activity is focused on supporting economic infrastructure, namely in the energy sector.
It specifically supports investments in energy efficiency and renewable energy, low-carbon technologies, afforestation and sustainable forest management, adaptation to climate change, technical assistance and the development of carbon markets.
The EIB, which manages the facility, supports the EU’s leadership role in tackling these global challenges.
The revolving fund is financed by the EU Member States and managed by the EIB. Total lending since 2003 amounts to €6 billion.
ACP-EU Energy Facility
Established in 2005, the ACP-EU Energy Facility is the main instrument targeting energy access in ACP countries. It supports projects increasing access to sustainable and affordable energy for the poor living in rural and peri-urban areas.
Overall commitments of €420 million were made available for the period 2006-13. Over 13 million people should benefit from improved access to energy thanks to this support.
The projects funded by the facility proved instrumental in increasing energy access in poor rural areas. They contributed to achieving tangible improvements in beneficiary populations' living conditions and socio-economic conditions.