LIMA, Peru – The 14th APEC Energy Ministerial Meeting highlighted Peru’s commitment to leveraging the global energy transition as a catalyst for industrialization, according to Rómulo Mucho, Peru’s Minister of Energy and Mines. He emphasized that this transition is poised to create direct employment opportunities and deliver enhanced value, particularly in vulnerable communities.
“Achieving a successful energy transition requires a multifaceted approach that considers our unique geography and industrial landscape across APEC economies,” stated Minister Mucho.
Mucho asserted that energy supply security is intrinsically linked to economic growth and social advancement, declaring, “Clean energy sources must become the cornerstone of our energy landscape.”
He further indicated that technological advancements emerging from the energy transition will facilitate Peru’s involvement in diverse economic activities, including energy storage, solar panel manufacturing, carbon capture, and direct removal technologies.
“These initiatives will foster public-private partnerships, engage both domestic and international firms, and involve academia and civil society, ensuring a fair, inclusive, and sustainable transition for Peru and the broader region,” Minister Mucho added.
Julia Torreblanca, chair of the 2024 APEC Business Advisory Council, addressed the critical climate crisis and its impact on the energy sector, presenting the council’s recommendations to the ministers.
Torreblanca noted a significant shift in energy investment trends, revealing that of the estimated USD 2.8 trillion invested in energy in 2023, approximately USD 1.7 trillion—nearly 60 percent—was directed toward clean energy initiatives.
“Investment dynamics have changed remarkably: for every USD 1 spent on fossil fuels, USD 1.7 is now allocated to clean energy, a stark contrast to the 1:1 ratio seen just five years ago,” Torreblanca explained. “This evolution is propelled by favorable economic conditions, strong policy backing, and a unified focus on climate and energy security goals.”
In light of this shift, the business council recommended that member economies capitalize on this momentum to drive equitable and realistic energy transitions, while also advocating for the elimination of inefficient subsidies that contribute to carbon emissions from fossil fuels.
Ministers were encouraged to explore the establishment of a comprehensive greener trade framework that fosters opportunities in sustainable supply chains, as well as in environmental goods, renewable energy, and clean technologies.
“Expanding investments to decarbonize high-emission and difficult-to-abate sectors, along with tailored financing strategies that address the APEC region’s specific needs, is crucial,” Torreblanca added.
Electric vehicles (EVs) emerged as a pivotal technology in the global energy transition, with EVs making up 18 percent of all cars sold in 2023, up from 14 percent in 2022 and just 2 percent in 2018. Torreblanca emphasized the importance of developing international standards that facilitate compliance and lower costs, stating, “We must ensure the electric vehicles are primarily powered by clean energy sources.”
To bolster the growth of the EV market, Torreblanca urged ministers to establish equitable trade conditions by removing tariffs, non-tariff barriers, and other discriminatory practices that impede the flow of goods and services linked to electric vehicle production.
