Energy-Efficient Manufacturing in Latin America and the Caribbean: Just Cheaper & Better
Energy efficiency is the most effective mechanism for reducing gas emissions. The manufacturing sector in Latin America and the Caribbean can do its part for the environment while lowering financing costs through international certifications for its energy management systems.
If you care about the environment, you care about energy efficiency in the industrial sector.
Energy efficiency is the most effective mechanism for reducing greenhouse gas emissions; it is a key component for an effective energy transition to clean energy sources and achieving each country's decarbonization goals.
According to the International Energy Agency (IEA), the industrial sector in Latin America and the Caribbean (LAC) consumes about 25% of all the energy used in the region. It is also worth highlighting that the industrial sector in LAC is responsible for almost half of the electricity consumed.
In LAC, manufacturing is mainly associated with the production of mass consumer goods and moderate levels of technological aggregation. The most significant and frequent final uses of energy relate to steam generation for heating, water pumping, and cooling to preserve perishable items, manufacturing of parts from raw materials and intermediate processing, the assembly of mechanical, electrical, and electronic devices, and machinery used in raw material processing and logistics.
Against this backdrop, the concept of energy management bolsters the manufacturing industry in the region, helping to identify opportunities for cost-saving measures or implementing other energy sources with better environmental performance in the production cycles.
These practices are also recognized as alternatives to increase the competitiveness of the regional industry.
IDB Invest supports initiatives associated with energy management system certification, as it sees these mechanisms as a highly effective way for its clients to improve their energy performance.
A good example of these efforts is the home appliance producer Indurama, the first Ecuadorian company in its field to obtain the prestigious ISO 50001:2018 certification for its energy management system, thanks to the support of IDB Invest's consulting services division.
Obtaining these certificates is not easy. Work began in 2015 and managed to sail through in part thanks to the strategic alliance with IDB Invest and its "invest to reverse" policy, which is closely linked to the resilient, low-emission development of the region's industrial sector.
This achievement positions the company as a benchmark in good manufacturing practices and sustainable development at the corporate level, and opens up the possibility of accessing preferential financing conditions in the future, thanks to the company's commitment to the efficient use of energy as part of its culture. For IDB Invest, this is one more step in its commitment to implement profitable and sustainable practices throughout the region.
Authors
Christian Parra
Christian is part of the Climate Change Team of Advisory Services Division at IDB Invest, which he joined in 2017. He is responsible for coordinating advisory projects in the energy sector. Before joining the IDB Group, he held positions as: National Director of Climate Change Mitigation for the Ecuadorian Ministry of the Environment, Sustainable Energy and Climate Change Coordinator at the Latin American Energy Organization (OLADE), Coordinator of the Low Emission Capacity Building program of the United Nations Development Program (UNDP), researcher at Ecuador’s National Institute of Renewable Energy and Energy Efficiency, officer at the Ministry of Energy of Ecuador, as well as independent consultant for the private sector. Christian has a PhD from Valladolid University (Spain), holds a master’s degree in sustainable energy development from the University of Calgary (Canada) and an undergraduate degree as agricultural engineer from The central University of Ecuador.
Hilen Meirovich
Hilen Meirovich is the Managing Director of Climate and Environment at IDB Invest. Hilen, has over 20 years of experience in climate finance, sustainable infrastructure, and environmental finance, with roles at IDB, IDB Invest, and active speaker at global climate forums. Under her leadership, IDB Invest expanded its climate advisory services, quadrupling climate-related transactions, and building a $10.3 billion climate finance portfolio. Her leadership included spearheading innovative financing mechanisms, resource mobilization, and aligning organizational practices with the Paris Agreement. An example of those innovations as the development of Latin America’s first blue bond, and positioned IDB Invest as a climate leader across MDBs and other international actors. Hilen holds a PhD in Political Science from Georgetown University, an MA in Public Policy from Georgetown University, and an MA in Political Science from Hebrew University of Jerusalem.
LIKE WHAT YOU JUST READ?
Subscribe to our mailing list to stay informed on the latest IDB Invest news, blog posts, upcoming events, and to learn more about specific areas of interest.
SubscribeClimate change
Related Posts
2024, the Year the World Turned Its Eyes to the Amazon Region
The "lungs of the planet," was one of the major topics of the past twelve months. Despite significant challenges, the region has much to offer regarding global solutions that drive sustainable development. Here is a selection of blogs we published on the topic.
Addressing Climate Change Through Improved Business Continuity
The increasing impact of climate change on the Caribbean, emphasizes the need for effective business continuity management to mitigate disruptions.
Assessing Climate Risks Is Vital for Companies, the Economy and the Environment
Although each company’s adaptation strategies must be tailored to its unique circumstances, ignoring climate change is never wise. Conducting a professional assessment is the best approach to making informed decisions.