Bringing The Energy Transitions’ Benefit To People, Businesses

Issued by the 14th APEC Energy Ministerial Meeting
Lima, Peru, 16 August 2024

“Peru sees the global energy transition as an opportunity begin its path to industrialization,” said Peru’s Minister of Energy and Mines Rómulo Mucho, adding that it will generate direct employment and greater value add, mainly in the most vulnerable areas.

“The energy transition can be achieved through various pathways by considering our local geography and industrial structure across the APEC economies,” Minister Mucho continued.

“Energy supply security is also directly related to the economy and social development. I am fully convinced that clean energy source must become the main component of our power supply.”

Minister Mucho underscored that the technological development gained from the energy transition will open more opportunities and allow Peru to participate in various economic activities such as energy storage and export, solar panels manufacturing, carbon dioxide capturing and direct removal, among others.

“These activities will encourage public-private partnerships, include domestic and foreign companies and engage the academia and civil society, making it a fair, inclusive and sustainable transition not only for Peru, but also for the region,” Minister Mucho said.

Julia Torreblanca, Chair of the 2024 APEC Business Advisory Council (ABAC), underscored the urgent climate crisis and the challenges facing the energy sector when she briefed the ministers about the council’s recommendations.

She highlighted the evolving trend in energy investment: from the estimated USD2.8 trillion figure that was invested in energy in 2023, over USD 1.7 trillion or almost 60 percent, was directed toward clean energy sources.

“The investment ratio has shifted dramatically: for every USD 1 spent on fossil fuels, USD 1.7 is now invested in clean energy, compared to a 1:1 ratio just five years ago,” Torreblanca said. “This shift is driven by improved economics, robust policy support and a strong alignment of climate and energy security goals.”

Given this shift, the business council suggested member economies to use this momentum to promote just, ambitious and realistic energy transitions, as well as consider eliminating inefficient subsidies to reduce carbon emissions, particularly from fossil fuels.

They recommended that ministers could also assess the establishment of a coherent greener trade framework that unlocks greater opportunities in sustainable supply chains, environmental goods and services, renewable energy, and clean technology.

“Further expanding the investments to decarbonize high-emitting and hard-to-abate industries, as well as tailoring this transition finance strategies to the specific needs of the APEC region are essential,” Torreblanca explained.

“Electric vehicles are becoming a crucial technology in the global energy transition. In 2023, electric cars represented about 18 percent of all cars sold, up from 14 percent in 2022 and just 2 percent in 2018,” Torreblanca added. “Developing international standards will streamline compliance and reduce costs. We must also remain coherent, powering those electric vehicles with predominantly clean energy sources.”

To support this growth, Torreblanca urged ministers to ensure fair trade conditions by eliminating tariffs, non-tariff barriers and other discriminatory policies that hinder the movement of goods and services related to the electric vehicles production.

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