The global energy landscape is unfolding on two fronts with distinct timelines and overlapping agendas: on the one hand, climate change, which prioritizes a long-term decarbonization agenda; and on the other hand, the post-pandemic energy crisis, exacerbated by the armed conflict in Eastern Europe, which shapes short-term energy security and access agendas. In all likelihood, the new configuration of the energy regime at both regional and national levels will result from the effective or ineffective interplay of these agendas in the medium term.

The global climate crisis is putting existing production and consumption systems under strain, including the fossil fuel energy regime deployed since the 19th century. In its sixth report, the Intergovernmental Panel on Climate Change (IPCC) dispels any doubt regarding the origin of this crisis: the observed increases in greenhouse gas (GHG) concentrations since around 1750 are unequivocally caused by human activities (IPCC, 2021), a period that coincides with the beginning of the Industrial Revolution. In this sense, the consequences of climate change range from impacts on natural ecosystems, such as glacial retreat, rising sea levels, and an increase in extreme weather events (droughts and floods), to socioeconomic impacts on food security, water quality, fisheries, infrastructure, and more. Paradoxically, Latin America has a low historical incidence of GHG accumulation in the atmosphere, as does the entire Global South (Hickel, 2020), while at the same time being particularly vulnerable to such impacts due to its geographical, climatic, socioeconomic and demographic characteristics (Bárcena et al, 2020).

According to the IPCC (2018), global warming is likely to reach 1,5°C above pre-industrial levels between 2030 and 2050 if it continues at the current rate. To avoid exceeding this increase, rapid and far-reaching transitions in energy, land, urban, and infrastructure systems would be necessary. Net global anthropogenic CO2 emissions would need to decrease by approximately 45% by 2030 compared to 2010 levels and reach zero around 2050.

In the economic structure, the energy sector accounts for the largest share of global emissions, at 76% of the total, according to data from the Climate Watch platform. Therefore, reducing emissions from the energy sector plays a central role in international climate commitments. The Paris Agreement was adopted in 2015 with the aim of reducing greenhouse gas (GHG) emissions in order to limit the increase in average global temperature to well below 2 degrees Celsius and as close as possible to 1,5 degrees Celsius, thus avoiding the most severe impacts of climate change, such as increased droughts, floods, and severe storms. Given the impossibility of reaching a consensus on a single universal formula for emissions mitigation, it was agreed that each country would decide its own targets for the period 2020-2030 and submit its Nationally Determined Contributions (NDCs), including the mitigation measures to be implemented in the energy sector. Likewise, the 2030 Agenda for Sustainable Development (2030 Agenda), adopted by the United Nations in 2015, promotes Sustainable Development Goals (SDGs), including one specifically focused on energy (SDG 7), which aims to ensure access to affordable, reliable, sustainable, and modern energy. Its targets are universal access to modern energy services, doubling the rate of improvement in energy efficiency, and substantially increasing the share of renewable energy in the global energy mix by 2030.

In addition to the climate crisis, the post-pandemic and international war fronts have emerged. As a result of the Covid-19 crisis, global energy-related CO2 emissions had decreased by 5,2% in 2020, nearly 2 Gt, the largest decrease since World War II, due to reduced oil use for land and air transport. However, following the worst effects of the pandemic, the world experienced an extremely rapid economic recovery, driven by unprecedented fiscal and monetary stimulus and a swift, albeit uneven, rollout of vaccines. The recovery in energy demand in 2021 was hampered by adverse weather and energy market conditions, leading to increased coal burning despite renewable energy generation recording its highest annual growth ever. Emissions increased by 6% compared to 2020, at almost 2,1 Gt, making 2021 the year with the largest year-on-year increase in energy-related CO2 emissions in absolute terms (IEA, 2021).

As a consequence of the supply crisis, a new scenario of high energy prices has emerged since the end of 2021, threatening other value chains such as food production and strategic inputs, for example, steel, aluminum, and fertilizers. In this context, a global recession is looming in the immediate future. At the same time, higher energy costs are having a significant impact on the economies of Latin American countries that import natural gas and fossil fuels. On the other hand, oil and natural gas exporting countries are benefiting from increased revenues that are helping to alleviate the dire social situation left by the pandemic.

In this context, there is a shift in priority from decarbonization on the energy agenda to energy security, as the market reports energy scarcity and high prices. At the same time, Europe's response to the outcome of COP26, held in Glasgow in November 2021, within the broader context of the energy crisis (preceding the war between Russia and Ukraine), was the European Union's approval of an addendum to the Green Finance Taxonomy. This addendum considers both natural gas and nuclear energy as transitional energy sources for the green economy, which will complement other renewable sources in shaping the global energy mix in the medium term.

Current global transformations also present internal challenges and new export markets for Latin American countries. Throughout the region, state-controlled oil and electricity companies are almost entirely diversifying their portfolios toward renewable energy. There is also a presence of technology-based companies and scientific organizations focused on clean energy innovation. As developed countries decarbonize, they increasingly demand critical minerals and new non-fossil fuels (NFFs), a situation that presents a significant paradox. Within the framework of the global energy transition, the region faces a choice: either be a mere supplier of mineral products and bear the environmental impacts of more intensive exploitation, or become involved in the value chains of energy storage systems such as lithium-ion batteries and in vectors such as blue hydrogen (obtained from natural gas and carbon capture and storage) and green hydrogen (obtained from renewable energy sources such as wind and solar).

Latin America and the Caribbean (LAC) is one of the most unequal regions in the world, where 20% of the population holds 83% of the wealth and with an informality rate of 53%, according to ECLAC data. Furthermore, the impact of the COVID-19 pandemic has exacerbated income inequality and increased job insecurity.

Despite its historically low emissions contribution and current figure of only 8% of total emissions, the region is particularly vulnerable to the impact of climate change due to its geographic, climatic, socioeconomic, and demographic characteristics. One example is the high sensitivity of its natural assets, such as forests and biodiversity, to climate change. It is estimated that by 2050, the economic cost of climate change in the region will represent between 1,5% and 5% of the current regional GDP, due to the sum of agricultural and hydroelectric generation losses, disease vectors, and extreme weather events, among other factors (Bárcena et al., 2020). Given the increased frequency of extreme weather events and the inertial trajectory of greenhouse gas emissions, implementing adaptation processes to reduce the expected damage is unavoidable (Bárcena et al., 2020).

Furthermore, Latin America and the Caribbean (LAC) boasts a cleaner energy mix than the global average due to the contribution of hydroelectric power and lower coal consumption. The region is also not immune to the energy transition process. However, unlike other energy transitions that arose as a consequence of the emergence of new technologies and/or resource discoveries, the current one is a purposeful transition based on the need to reduce greenhouse gas (GHG) emissions (Kern & Markard, 2016). Therefore, the current transition is toward low-carbon economies (non-conventional renewable energies, hydroelectric, and nuclear), although it should also be noted that natural gas is gaining relevance as a less polluting option among fossil fuels, since it produces approximately half the CO2 emissions of coal, complementing renewable energies given the variability and instability of wind and solar power generation. As a corollary to this decarbonization process, a global scenario of new geopolitical disputes has been configured (IRENA, 2019a) and the transition towards a new technological paradigm that can open national development strategies by promoting new industries, supply chains and "green" jobs (IRENA, 2019b).

Regarding access to energy, Latin America and the Caribbean (LAC) faces challenges, even though its situation is positive compared to other regions. The electricity access rate is 97,8% (among the highest in the world), but 18,5 million people still lack access. While 87% have access to clean and efficient cooking technologies, 84 million people remain without access, with the resulting health consequences, especially for women (Rivera Albarracín, 2021).

The energy transition, based on sustainable renewable energy and energy efficiency, should be a means to increase access for these populations. The concept of a just transition can mediate between the region's development aspirations and the need to mitigate climate change. However, this requires a discussion based on principles of equity regarding how to implement it in terms of time and pace, without leaving behind the populations and developing countries most dependent on income from the production and export of fossil fuels (Rivera Albarracín, 2021).

During the previous period, the Working Group aimed to study the energy policies adopted in the region, their effects on current development patterns, and their main obstacles. Through six published thematic bulletins and numerous activities, the Group addressed historical issues such as security of supply and access to energy; rent-seeking by producing countries and the trade burden on importing countries; the socio-environmental impacts of energy production and consumption; the role of state-owned enterprises and foreign direct investment; the development of endogenous industrial capabilities; and technological dependence. Furthermore, the Group explored energy as a driving force behind numerous regional integration projects.

For the next period, the challenges, opportunities, and barriers to the energy transition in Latin America and the Caribbean (LAC) will be addressed. This entails exploring not only energy security policies but also a research agenda linked to decarbonization and a just transition (the speed and pace of clean energy integration into the energy mix) and to technological and productive development (expansion of industrial capacity, innovation, and sustainable finance). The research project "Critical Perspectives on Energy Transitions in LAC" will be developed, along with a special issue of Mexico's El Trimestre Económico entitled "Climate Crisis and Energy Transitions in LAC: Tensions and Disputes between Climate, Economy, and Society." Furthermore, bimonthly discussion sessions on the progress of the research and the special issue will continue, with the findings being compiled into thematic bulletins that the Working Group will publish twice a year, as in the previous period.

On the other hand, in recent years, Latin American and Caribbean social sciences have begun to focus on developing the concept and measurement of energy poverty, due to the growing recognition that access to energy is fundamental to human development. Although this recognition is not new, it has gained more attention within the contribution of critical development studies to the Sustainable Development Goals (SDGs), given that lack of access to energy has been linked to various social, environmental, and health problems. Thus, measuring energy poverty has become a central theme for the Working Group, complementing the study of energy transition policies, as it allows for its connection to other issues of fundamental current relevance, such as the democratization of access to energy and public services. In this regard, the Second International Seminar on Energy Poverty in Latin America and the Caribbean will be developed, together with the Energy Poverty Network (RedPE) and the Latin American Energy Inclusion Network (RedIEL), the international seminar on the renegotiation of the Itaipu Dams of 2023 (central aspect of public goods and access to energy), while promoting a) meeting spaces for academic exchange, b) the articulation with other CLACSO Working Groups (such as the Global Environmental Change Working Group and the Political Ecologies of the South Working Group), and c) supporting young researchers in the development of their postgraduate theses.

Finally, dialogues will be promoted with regional energy organizations such as OLADE and ECLAC; academic institutions such as CONACYT of Mexico, CONICET of Argentina, CYTED of Spain, and CASS of China; and social organizations such as Latindadd, Public Services International (PSI), Oxfam, the Latin America and the Caribbean Tax Justice Network, and the Ebert Foundation. Links to the generation of alternative energies based on local cooperative experiences, such as the one developed by Onergia Cooperativas in Mexico, will also be explored. While some of these lines of inquiry were initially addressed in the previous period, they will be expanded and deepened through the integration of national case studies, comparative studies, bilateral relations studies, and multilateral integration frameworks.