ECLAC member states at a standstill — LUMINA or Green P?

Resuello Aristhea Anne Mendoza | Buenos Aires Herald

---

Expanding the renewable energy industry is an issue not simple to solve— an issue that ECLAC member states are working tirelessly to address.

The debates focused on many aspects: distribution of funding (or lack thereof), each nation’s sustainable goals, economic benefits and hurdles, and much more. Yet, almost every country believed in one thing: ECLAC nations need to come together to address the problem effectively.

With a shared common goal in mind, resolutions were thrown across delegates, pleas to join various committees were echoed in session rooms, and difficult questions were answered by those holding great power.

By Day Two of ECLAC debates, two major initiatives stood out the most: Latin American Unity for Mobilisation, Investment/Infrastructure, and Accountability (LUMINA), and Governance, Resilience, Energy, Efficiency, Networks Partnership (GREEN P).

Both initiatives, founded by major, economically stable ECLAC states, call on delegates from other states to support their initiatives and contribute effectively to each initiative’s unique goals, so as to promote the use of renewable energy across the region.

GREEN P

Founded by the delegates of Germany and Uruguay, two prosperous economies in ECLAC, GREEN P was started to meet various goals that ECLAC states have trouble reaching. It aims to “pursue long-term sustainability goals in line with the 2030 agenda, and UN Sustainable Development Goals (SDGs)”, as stated by Germany, a goal that needs to be met in order for the region to progress towards a greener future.

In addition, GREEN P helps all participating members be included through the use of Just Energy Transition Programmes (JETP). These programmes work towards transitioning from non-renewable sources of energy, such as fossil fuels, to renewable ones in a fair and equitable manner. The implementation of JETP has garnered significant support from many low-income countries, especially Peru, which has repeatedly highlighted the importance of JETP to each nation’s economy. While the delegate of Argentina was not present to give their stance on JETP, Argentina has suggested in the past a preference for tailored national

strategies over specific JETP models by focusing on its Productive Argentina 2030 Plan, which instead seeks bilateral energy cooperation.

GREEN P also called for a need for annual forums to promote inclusivity, as these forums act as a platform for all participating nations to advocate their own agendas, give and receive yearly progress reports, peer review assessments facilitated by the Organisation of Latin American and Caribbean Supreme Audit Institutions (OLACEFS), and a rotation of chairs to ensure all states are represented equally.

Lastly, the creation of GREEN P aimed towards addressing ECLAC’s scope of debate, such as “building transparency and accountability, stable economic and political environments, research and development (R&D), and equity”, as stated by Germany.

Since the topic of sustainability is too general, GREEN P includes two core pillars: social and economic. To reach social sustainability, GREEN P proposed initiatives like JETP, and the International Climate Initiative (IKI), while reaching economic sustainability needed initiatives like Public-Private Partnerships (PPPs) and infrastructure projects in support of a shared 2030 Agenda were needed as well.

Numerous ECLAC states showed their support for GREEN P, such as El Salvador, Dominican Republic, Peru, and Paraguay, showing where the majority of ECLAC states’ desires lie: to be connected through an inclusive and beneficial partnership.

LUMINA

Delegates from Guatemala and Bolivia pushed for an alternative— LUMINA.

LUMINA aims to achieve energy diversity, create regional training hubs, and advance R&D in member states, as several ECLAC states have issues such as underinvestment, structural economic challenges, and a lack of coordination between key institutions — all of which are reasons affecting R&D advancements in Latin America.

Through the initiative, several initiatives were launched under each of the three pillars: mobilisation (manpower/ resources), infrastructure investment, and accountability (for governments). The LUMINA Regional Fund also implemented measures that hold participating states accountable for their funding. Donor countries, such as the US, Canada, and Spain, contribute to funding through capital contributions to the Inter-American Development Bank (IDB) / Caribbean Development Bank (CDB). A tiered contribution system based on a state’s GDP was also established, where states with higher GDPs contribute more funds through LUMINA.

Funds received are then allocated based on project proposals or the needs of a specific country, and are used for various purposes: subsidising private investments, covering training costs, and financing grid updates. All in all, contributed funds through LUMINA keep ECLAC protected.

Funding-based initiatives are not new to Argentina, being an active contributor to ECLAC by directly funding agreements for specific funds, such as the CELAC Climate Fund (FACRID) in 2023. As such, LUMINA’s funding-based approach would be more in line with Argentina’s views, allowing Argentina to partake in distributing funds for the benefit of other ECLAC nations under LUMINA.