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Extractives: challenges and opportunities for the south in the energy transition

Author

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  • Adam Cohen

    (Associated Universities, Inc.)

  • Ricardo Raineri

    (Pontificia Universidad Católica de Chile, Engineering School)

Abstract

Latin America has abundant natural resources, giving the region an advantage in extractive industries and agriculture. However, this reliance on commodities exports and traditional economic sectors poses challenges to diversification, value-added growth, and environmental sustainability. In response to these challenges, Chile called in an international bid to establish a Clean Technology Institute to enhance valueadded and advanced clean technologies in extractives and lithium, taking advantage of the abundant solar radiation. This paper examines the governance challenges in Chile, which are similar in other countries, in embracing the opportunities of clean technologies and transitioning towards a greener and more innovative economy. The study focuses on Chile’s Clean Technology Institute, exploring its role in enhancing the value of natural resources, fostering economic growth, creating jobs, and contributing to global energy security. The research highlights the critical role that a national lab can play in a country’s research and development ecosystem. It emphasizes the need for a planned and mission-oriented approach with clear targets and milestones and objective management supporting the country’s long-term goals. Furthermore, it discusses the importance of integrating workforce development, investment in research and development, and enhancing institutions to create an innovation-friendly environment. The paper concludes on the importance of transparent and accountable governance practices for the success of a country’s innovation agenda. By leveraging its natural resources and fostering a culture of innovation, Chile and other Latin American countries can become global leaders in clean technologies, driving sustainable development and contributing positively to the world economy.

Suggested Citation

  • Adam Cohen & Ricardo Raineri, 2025. "Extractives: challenges and opportunities for the south in the energy transition," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 38(2), pages 253-272, June.
    • Handle: RePEc:spr:minecn:v:38:y:2025:i:2:d:10.1007_s13563-024-00479-2
    DOI: 10.1007/s13563-024-00479-2
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    References listed on IDEAS

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    1. Roberto Álvarez & Claudio Bravo-Ortega & Andrés Zahler, 2015. "Innovation and Productivity in Services: Evidence from Chile," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 51(3), pages 593-611, May.
    2. Redding, Stephen, 1999. "Dynamic Comparative Advantage and the Welfare Effects of Trade," Oxford Economic Papers, Oxford University Press, vol. 51(1), pages 15-39, January.
    3. Chuchu Chen & Albert N. Link & Zachary T. Oliver, 2018. "U.S. federal laboratories and their research partners: a quantitative case study," Scientometrics, Springer;Akadémiai Kiadó, vol. 115(1), pages 501-517, April.
    4. Hanushek, Eric A. & Woessmann, Ludger, 2015. "The Knowledge Capital of Nations: Education and the Economics of Growth," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262029170, December.
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