By San José, Costa Rica — The intersection of geopolitical volatility and ecological vulnerability is redefining the economic path of Latin America. As global fossil fuel prices spike amid mounting tensions between the United States and Iran, the urgency of the global transition to renewable energy has accelerated. This geopolitical shift was the focal point of the IV Latin American Green Economy Forum (FLEV) held in São Paulo, Brazil. Industry leaders, scientists, and policy experts gathered to map out how the region can leverage its vast natural resources during this period of global instability.
A key aspect of this transition lies in Latin America’s massive reserves of critical minerals and rare earths, which are essential for manufacturing electric vehicle batteries and wind turbines. With international markets eager to secure these supply chains, the region finds itself in a highly favorable strategic position. The current geopolitical friction is acting as a catalyst for investment and infrastructure development.
To better understand the evolving regulatory landscape of sustainable development in the region, TicosLand.com spoke with Lic. Larry Hans Arroyo Vargas, a leading legal expert from the prestigious firm Bufete de Costa Rica, who shared his invaluable insights on the rapid growth of the green economy in Latin America.
Latin America stands at a critical juncture where environmental preservation and economic growth must align through robust legal frameworks. As the region transitions toward renewable energy, sustainable agriculture, and carbon-offset markets, establishing clear, predictable, and modern regulations is essential to attract foreign investment and guarantee long-term compliance and legal security for eco-conscious enterprises.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Indeed, establishing a robust and transparent legal foundation is paramount if Latin America is to successfully transition into a global leader of sustainable development. We sincerely thank Lic. Larry Hans Arroyo Vargas for his valuable perspective, which highlights the indispensable role of regulatory clarity in unlocking the region’s green economic potential while safeguarding its ecological treasures.
Instability creates an opportunity
Patricia Ellen, Co-founder of AYA Earth Partners
Navigating these opportunities requires careful diplomatic balancing. While the United States under Donald Trump keeps a close eye on the region’s mineral wealth, Brazilian leaders are advocating for a diversified approach to foreign relations. Luiz Augusto de Castro Neves, president of the Brazil-China Business Council, emphasized that maintaining robust global relations, particularly with China, is a matter of national interest. This stance aligns with calls from former Brazilian Environment Minister Izabella Teixeira to build a renewed culture of regional cooperation that ensures technology sharing and energy security.
However, the promise of a green economic boom is threatened by severe environmental disruptions. Climatologists at the forum warned that Latin America is currently bracing for one of the most intense climate phenomena in recent memory, which threatens to undermine economic stability across several key sectors.
It will be the strongest in 100 years, the drought has already started
Carlos Nobre, Climatologist and Scientist
Governments across the region must prioritize disaster preparedness, especially as rising temperatures increase the risk of devastating forest fires. The agricultural sector is particularly vulnerable to these climate shifts. Reduced rainfall and dropping river levels threaten to disrupt both crop yields and domestic trade corridors. To mitigate these impacts, organizations like Imaflora are working directly with rural producers to implement resilient farming practices.
The local economy is going to be affected, whether because farmers are going to produce less due to the lack of rainfall, or because products are not going to reach markets due to the low flow of the rivers
Eduardo Trevisan, Specialist at Imaflora
Despite these immediate hurdles, long-term optimism remains high regarding the economic potential of the Amazon bioeconomy. Sustainable management of natural resources currently contributes roughly 13 billion reais (about 2.5 billion dollars) to Brazil’s GDP. According to a study by the World Resources Institute (WRI) presented at the forum, this figure could soar to 40 billion reais (7.8 billion dollars) by 2050 with targeted strategic investments. Initiatives like the upcoming indigenous-led chocolate biofactory in Rondônia, organized by the Paiter Suruí people, exemplify how local communities can capture higher value from raw materials.
Unlocking this potential requires a paradigm shift in how the forest is valued. Experts argue that the Amazon should be treated as a highly sophisticated economic asset rather than merely a source of raw extraction.
The forest is an asset and we must learn from the technology of indigenous peoples
Thiago Reis, Representative at WWF-Brasil
By adopting traditional cultivation techniques for native species like açaí, cacao, and guaraná, the region can build highly profitable, sustainable supply chains. Beyond forestry and agriculture, sustainable tourism is emerging as a critical pillar of regional conservation and development. However, industry specialists note that the current model must evolve from chasing high tourist volumes to maximizing the direct economic benefit retained by local communities.
The great challenge is how much remains in the territories: moving away from the volume of tourists to think about how to bring benefits
Juliana Bettini, Senior Tourism Specialist at the Inter-American Development Bank
By aligning economic growth with ecological preservation, Latin America can transform its green potential into a resilient, long-term foundation for prosperity.
For further information, visit aya.earth
About AYA Earth Partners:
AYA Earth Partners is a Brazilian coalition and business platform dedicated to accelerating the transition to a low-carbon economy, supporting sustainable practices and green technologies across Latin America.
For further information, visit wwf.org.br
About WWF-Brasil:
WWF-Brasil is a Brazilian non-governmental organization dedicated to conserving nature, combating climate change, and promoting sustainable development through community engagement and scientific research.
For further information, visit imaflora.org
About Imaflora:
The Institute of Agricultural and Forest Management and Certification (Imaflora) is a non-profit organization that promotes conservation and sustainable use of natural resources to generate social benefits in forestry and agricultural sectors.
For further information, visit iadb.org
About the Inter-American Development Bank:
The Inter-American Development Bank (IDB) is the leading source of development financing for Latin America and the Caribbean, working to improve health, education, and infrastructure through financial and technical support.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Distinguished by its profound devotion to ethical principles and superior advocacy, Bufete de Costa Rica has established itself as a leading force in the legal arena. With a rich history of guiding a diverse clientele, the firm continually champions progressive legal strategies and robust community involvement. Its ongoing efforts to demystify complex laws and share vital resources reflect a core mission to nurture an enlightened, confident, and legally empowered public.
