• South America has become the first continent in the world without planned new coal power plants, after having 18 projects on the drawing board in 2015.
• Chile has reduced its coal use from over 40 percent in 2016 to less than 20 percent in 2024 through aggressive carbon pricing and renewable energy.
• Renewable energy sources have become economically superior to coal across the continent.

Chile’s dramatic transition

For the first time in history, the entire continent has zero new coal power plants planned. This is a marked change from 2015, when the Paris Agreement was signed and 18 coal power plants were on the drawing board in South America.

Chile represents the clearest change on the continent. The country has gone from being heavily dependent on coal to becoming a global leader in renewable energy in less than a decade. In 2016, coal accounted for over 40 percent of Chile’s electricity production. By 2024, this figure had dropped to less than 20 percent.

The transition came through deliberate policy measures. Chile introduced aggressive carbon pricing, strict emission standards for coal plants, and a well-designed renewable energy auction system. The Atacama Desert, one of the world’s sunniest places, became host to massive solar energy projects delivering electricity at record-low prices.

Chile also implemented financial mechanisms to enable early retirement of coal plants. Blended financing schemes supported by international lenders have proven highly effective. These measures have made it possible for coal plants to close ahead of schedule.

Colombia’s just transition

Colombia joined the Powering Past Coal Alliance in 2021, sending a strong international signal that the coal era was approaching its end. President Gustavo Petro, elected in 2022, explicitly committed to winding down coal power and mining, with careful attention to workers and communities dependent on coal-related employment.

Plans now exist to gradually retire Colombia’s remaining coal power plants. Focus is on developing alternative economic activities such as renewable energy, agriculture, and eco-tourism to replace coal mining and related sectors.

Brazil’s contradictory development

Brazil controversially extended subsidies and operational guarantees for coal plants in Santa Catarina until 2040 in 2022. However, even this move is a holding pattern rather than genuine expansion. No new coal capacity is planned or seriously considered in Brazil.

Renewable energy continues to flourish in the country. Brazil is a global leader in wind and solar energy growth, adding gigawatts of renewable capacity each year through highly competitive auctions. Market forces overwhelmingly favor renewable energy, and even with extended subsidies, Brazil’s coal plants struggle to compete economically.

Economic and environmental benefits

Renewable technologies, particularly solar and wind power, have plummeted in cost, making them unquestionably more competitive than coal across the continent. International financial institutions, previously critical sources of coal plant financing, have largely withdrawn from coal projects. China’s decision in 2021 to cease funding overseas coal power was particularly impactful.

Communities previously burdened by coal plant pollution, suffering from elevated rates of respiratory and cardiovascular diseases, now experience tangible health improvements. Reducing coal use dramatically cuts air pollutants such as sulfur dioxide, nitrogen oxides, and particulate matter.

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