From raw commodities to finished products. What role will Latin American countries play in the Green Industrial Revolution?

There is an opportunity for the so-called Global South to assume a new role in the new global geoeconomic scenario. With a special look at the Latin America region, there is no doubt that countries like Argentina, Bolivia, Brazil, Chile, Colombia, Mexico, Peru, and Uruguay have the potential to slow climate change. These countries can provide the vital raw materials that will sustain the worldwide green industrial revolution. A bigger issue at stake here is whether the region can play a leading role in the new industrial revolution, offering more than raw materials to the world.

For big organizations and governments in the Global North, establishing relationships with Latin American countries is a priority. This is partly due to U.S.-China rivalry. To reduce China's influence in the lithium value chain, for example, the U.S. government is setting up trade agreements with Latin American countries, such as Chile. As the momentum of these changes accelerates, it is vital that upcoming business are based on: 1. respecting local interests; 2. ensuring fair transition; 3. safe mining practices. Over the next two decades, the growing demand for energy transition minerals is expected to bring in 1.7 trillion in global mining investments

In historical terms, this is the right time to establish a new economic pattern for Latin American countries in the global arena. With the green transition, the region has a one-in-a-million chance to generate wealth with huge redistribution potential. To accomplish this, it will be necessary to make major changes in the regulations and subsidies to encourage greening the local industry, as well as to invest in the necessary infrastructure and clean energy technologies.?

We might double mineral inputs for clean energy technology by 2040, in order to meet green transition demands. An IEA (International Energy Agency) report predicts that copper and rare earth elements will increase by 40%; 60% to 70% for nickel and cobalt; and almost 90% for lithium. Latin America is crucial to global goals. It represents 40% of copper production and 35% of lithium supplies. Chile holds the world's largest known lithium deposits and the largest lithium resources have been identified in Bolivia.

Who will lead this massive revolution in the Global South? Brazil is back in the environmental spotlight, after making various compromises and setting goals for tackling deforestation. The country still has plenty of room to grow on the green agenda. Nevertheless, it may contribute to the promotion of green industrial action in the region. The country assumed Mercosur's presidency and will also lead the G20 and the UN Security Council. Regarding mining, there is also a call to action to set high environmental, social, and governance standards.

The last decades have taught us a number of important lessons, one of which is that we can't keep doing business as we did in the past, ignoring nature and people's rights. Mining accounts for a series of tragedies, including the 2014 contamination of the water supply in the Sonora River - Mexico - with sulfuric acid; and the 2019 Brumadinho dam disaster, in which 270 people died. Brazil has the chance to foster innovation in business practices and commitments to build another story for mining in the region.?

Globally, all countries are on the edge of a massive step to deal with what the UN recently referred to as the "out of control" climate change scenario. If someone still believes there is time for discussions, it is best to act and collaborate. There will be no single solution to tackle the challenge ahead. For the first time, Latin American countries have the opportunity to stand in a fragmented world. They can assume an increased economic role and respectful leadership position on the green transition.