Environmental, energy, and sustainability issues

This chapter analyses the potential for environmental and sustainable technological transitions in Latin America. It draws particular lessons from the successful case of the policies related to the biofuel transition in Brazil, in view of that country’s long-term energy security and climate change mitigation strategies. The key elements in the approach identified are the transition from state-led to market-led innovation, the alignment between governance at global and national levels, and the importance of the connection between sectors to reinforce the innovation processes in each. These can help us to understand how to best promote future ecological innovation in the sustainability transitions in a Latin America context. The discussion indicates the extent to which imperatives around energy security and environmental sustainability can be effective prime movers for innovation, the building up of new capabilities, and, ultimately, the creation of new sources of competitive advantage in global markets.