Rethinking the Role of Natural Gas to Accelerate Decarbonization in Latin America and the Caribbean

It is becoming increasingly clear that the international community must accelerate the mass adoption of commercially available clean energy technologies and sources to drive decarbonization and achieve net-zero emissions. In Latin America and the Caribbean (LAC), for example, there is particular concern about vulnerable economies and the role of national oil companies (NOCs). The energy transition has raised existential questions about the future of these companies and the governments themselves. Furthermore, most—if not all—markets in the region will face challenges related to energy affordability. However, LAC has a relatively low carbon footprint and abundant natural gas resources. These resources offer an opportunity to accelerate the region's energy transition and decarbonization, while also addressing other key concerns. Natural gas is an immediately available option to serve as a cleaner transitional fossil fuel, capable of balancing the need to decarbonize with efficient resource use and manageable investment levels. It also plays an essential role in cleaner industrial development in the region's countries in the short and medium term. This document analyzes the role of natural gas in accelerating the transition to a net-zero emissions economy in Latin America and the Caribbean, with an emphasis on the major national oil companies (NOCs) and their strategic role in driving decarbonization efforts. As some of the most influential organizations in the region—both within and outside the energy sector—NOCs have the resources, political connections, and accountability to drive these changes.