Skip to main content

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.

Banner

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.

Gráfico

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

Hilen Meirovich

Hilen leads the Climate Change Advisory Services Team at IDB Invest, which she joined in 2017. She is responsible for developing innovative strateg

{{ raw_arguments.field_category_target_id }}

Related Posts

  • Image showing an agrophotovoltaic crop
    Agrophotovoltaics: A Double Opportunity for Latin America and the Caribbean

    Agrophotovoltaic production combines crop growing and/or animal husbandry practices underneath ground-mounted solar panels. By generating renewable energy, conserving water and making an efficient use of resources, it can open the way for a low-carbon, climate change-resilient future.

  • banner
    How’s the Digital Transformation of Agribusiness Going in the Region?

    Agribusiness presents a great opportunity to increase value creation in a sector that is two to three times more effective at reducing poverty than any other, including manufacturing and services.

  • banner
    Digitalization May Help Latin America to Alleviate Global Food Shortages

    Latin America and the Caribbean is in prime position to step in and alleviate global food shortages as climate change looms as a global threat, particularly if the region leverages digital solutions, a new report developed by IDB Invest in collaboration with Accenture shows.