2024 Renewable Energy and Carbon in Review
As the realities of the climate crisis become ever more visible, many across the globe are navigating unique challenges and opportunities in their pursuit of a sustainable future. In 2024, countries in the Asia Pacific (APAC), Latin America and the Caribbean emerged as key players in this phenomenon, leveraging their rich natural resources and special technologies amid acute climate vulnerabilities, to pioneer innovative approaches to sustainable development. This article serves as a recap of the notable trends and developments in renewable energy and carbon markets within these emerging regions over the past year, offering insights into both the promise and complexities of their rapidly evolving landscapes.
The Asia Pacific
Home to some of the world’s fastest-growing economies, APAC has become a pivotal player in harnessing renewable energy and reducing carbon emissions. In 2024, the region witnessed significant advancements alongside emerging challenges and opportunities.
Many APAC countries explored carbon pricing mechanisms as part of their climate action strategies. China expanded its Emissions Trading System (ETS) to include high-emission industries, including cement, steel, and chemicals. Vietnam also launched a pilot carbon market focusing on power, steel, and cement, with plans for a full implementation in 2029. Meanwhile, Taiwan introduced a carbon fee policy targeting high emitters in the energy and manufacturing sectors, and Thailand kickstarted preparations to introduce a carbon tax in 2025. These developments are expected to drive demand for carbon credits and related investments across the region.
Regarding renewable energy, offsite Power Purchase Agreements (PPAs) gained traction as businesses sought out long-term access to clean energy. Unveiled after years in progress, Vietnam’s Direct Power Purchase Agreement (DPPA) scheme allowed companies to purchase renewable energy directly from generators. Similarly, Malaysia’s Corporate Renewable Energy Supply Scheme (CRESS) facilitated direct purchases from renewable developers. In the Philippines, the Energy Department streamlined applications for RE service contracts by providing detailed procedures and guidelines for securing these key required documents. Overall, the policy environment became more favorable for corporate buyers to source offsite renewable energy; however, no projects were implemented.
Offshore wind energy witnessed widespread growth across APAC. South Korea initiated the expansion of its offshore wind capacity, with 7–8 GW worth of offshore wind power expected to be auctioned in tenders from 2024 to 2026. Japan committed to significant investments in floating offshore wind technology as part of its decarbonization efforts, gearing up for its Round 4 offshore wind tender. Further south, Taiwan’s Round 3.2 offshore wind auction faced challenges due to local content requirements, but the government’s decision to remove such stipulations in Round 3.3 could reshape the market. Despite progress, the region faces challenges related to policy and grid infrastructure. Yet, recent regulatory amendments, such as Vietnam’s revised Electricity Law and South Korea’s Distributed Energy Act, signal positive developments.
Latin America
Latin America, rich in natural resources, holds immense potential to drive global clean energy efforts. Home to 60% of the world’s biodiversity and critical ecosystems like the Amazon rainforest, it faces both unique challenges and transformative opportunities to leverage natural capital for sustainable development.
The region’s clean energy journey begins with its natural assets. From solar panels in the deserts of Chile to the windswept plains of Patagonia, the energy landscape in 2024 witnessed the inner workings of a remarkable transformation. Solar energy surged, with northern Mexico, parts of Brazil, and Argentina becoming solar powerhouses. Meanwhile, wind energy gained momentum, particularly in the coastal and inland regions of northeastern Brazil, Patagonia, and Mexico’s Isthmus of Tehuantepec – areas now recognized globally for their wind potential. Green hydrogen also had its moment as Chile debuted the region’s first hydrogen-powered train, while interest and investment grew in Brazil and Mexico. Hydropower, which provides nearly half of the region’s energy needs, remained a cornerstone of the electricity supply in countries like Brazil, Colombia, and Paraguay. Together, these resources equip Latin America with the tools to generate clean, affordable, and reliable energy for decades to come.
Still, despite these immense opportunities, the region faces challenges in unlocking its full renewable energy potential. Overcoming these hurdles will require smart, inclusive, and forward-thinking policies. The private sector, in collaboration with governments, must prioritize long-term planning, streamline regulations, and develop innovative financing mechanisms to attract investment and accelerate the clean energy transition.
Biodiversity and carbon credit markets also received notable attention. Biodiversity credits, which fund ecosystem preservation rather than compensating for damage, emerged as a key opportunity. However, markets remained in their infancy, with demand largely voluntary, institutional frameworks underdeveloped, and regulatory support limited. The Mexico Carbon Forum 2024 highlighted growing interest in biodiversity credits, emphasizing the importance of clear regulations, technological innovation, and community-centered approaches. Simultaneously, initiatives like the Biodiversity Credit Alliance (BCA) worked to standardize frameworks and increase market credibility.
The more established carbon credit market offered valuable lessons for these markets. Successful local examples, like Mexico’s internal emissions systems in Tamaulipas and Querétaro, and Ecuador’s “Programa Ecuador Carbono Cero” (PECC) or Carbon Zero Program, demonstrated how well-structured frameworks and community engagement can boost participation and impact.
Nature-based solutions, such as blue carbon projects, faced challenges like lengthy permit processes, but advances in transparency and technology for connecting investors and landowners have begun to improve governance and efficiency. Stakeholders call for more rigorous validation and verification processes to ensure the credibility of both biodiversity and carbon credits. As these markets continue to evolve, transparency and accountability will be essential to attract investors and build trust.
The Caribbean
Faced with high costs and limited infrastructural capacity, the Caribbean's pursuit of climate resilience and sustainable development in 2024 reflected a growing emphasis on innovation and adaptation.
In renewable energy, solar and wind energy retained momentum, but many islands also ventured beyond these traditional sources. The volcanic Eastern island states took to geothermal exploration, with St. Kitts and Nevis securing funding and technical expertise from international partners for feasibility studies and Dominica preparing the construction of a 10 mega-watt power plant. These events culminated with the Organisation of Eastern Caribbean States (OECS) announcing its collaboration with the International Renewable Energy Agency (IRENA) for capacity building and stakeholder engagement in the region’s drive to develop the resource.
Microgrids and hurricane-resistant infrastructure emerged as potential solutions to outdated national grid systems and escalating infrastructural damage from extreme weather events. Building on the success of its Category 5 hurricane-proof Ragged Island microgrid, the Bahamas gained recognition at the 2024 Caribbean Renewable Energy Forum for a new microgrid project expected to cut one of its island’s diesel dependency by 93%.
Meanwhile, research into sargassum-derived renewable natural gas (RNG) took center stage in Barbados, as the country launched the world’s first vehicle powered by RNG derived from sargassum seaweed, blackbelly sheep manure, and rum distillery water.
Regarding carbon, larger members of the community set precedents in the market. Guyana issued the first carbon credits eligible for use by airlines under the UN Airline Compliance Programme CORSIA, while Suriname became the first country to issue carbon credits under the Paris Agreement.
The Inter-American Development Bank (IADB) approved a Technical Cooperation (TC) initiative intended to assess regional carbon stock and lead policy dialogue in creating a legislative framework for Caribbean nations and businesses to participate in the global blue carbon markets. Nonetheless, smaller Caribbean nations continued to explore alternative financing mechanisms. The Bahamas and Barbados collectively unlocked over USD 245 million through debt swaps – The Bahamas with a debt-for-nature swap to conserve its oceans and mangroves, and Barbados with a world-first debt-for-climate-resilience swap to improve the island’s water infrastructure. The Dominican Republic also debuted its first green bond on the international market, raising USD 750 million to finance clean public transport and renewable energy tax incentives among other initiatives.
Looking Ahead
Coming into the new year, it is expected that these three regions will continue to drive the global energy transition and carbon market movement, particularly in corporate sustainability. In the Asia Pacific, adopting offsite PPAs, introducing carbon-related mechanisms, and expanding the features thereof in some advanced markets are expected to accelerate. In parallel, accelerated adoption of offsite PPAs, growing investments in infrastructure, cross-border electricity integration, and the convergence of biodiversity and carbon credit markets could drive sustainable economic transformation, foster ecological resilience, and support local communities in Latin America. Brazil, in particular, will play a leading role, with the upcoming United Nations Climate Change Conference (COP30) in Belém set to spotlight the Amazon’s role as a critical carbon sink, and highlight the wider region's potential. Finally, in the Caribbean, 2025 may see an intensified drive to secure financing and technical partnerships to execute its ambitious strategies, with the region asserting leadership in sustainable financing, addressing the climate crisis on its own terms and carving its own path to resilience and economic transformation. Ultimately, the realization of all these ambitions will depend, to varying extents, on good governance, transparent regulations, targeted incentives, proper collaboration between the public and private sectors, and community involvement.