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European Union-South America Relations in Times of Energy Transition

Environmental Policy
European Politics
European Union
International Relations
Latin America
Energy Policy
Ana Tostes
Rio de Janeiro State University
Yasmin Renne
Instituto Português de Relações Internacionais, IPRI-NOVA
Ana Tostes
Rio de Janeiro State University

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Abstract

This article examines the European Union’s evolving diplomatic strategy, aligned with the green and energy transition agenda, through two distinct phases. The first phase, prior to the war in Ukraine, coincided with the launch of the Global Gateway in 2021—a key instrument designed to adapt development cooperation to external financing mechanisms in response to China’s Belt and Road Initiative. The second phase emerged after the onset of the war and the deterioration of relations with Russia. In striving to achieve the objectives of the European Green Deal during this critical juncture, the EU introduced the Global Gateway Investment Agenda in 2023. This new agenda reflects a geopolitical shift toward energy autonomy. Within this context, Latin America has re-emerged as a strategic focus in EU external action, marked by the revival of EU-CELAC relations, renewed discussions on concluding the EU-Mercosur Agreement, and other cooperation initiatives in sectors vital to the energy transition. The article argues that the EU has undergone a diplomatic shift, recognizing Latin America—and specific countries within it—as strategic actors in the geopolitical landscape shaped by the war in Ukraine. The objective is to identify instruments, practices, progress, and setbacks in this shift, which we associate with efforts to diversify sources of raw materials, particularly in the energy sector. Chile and Brazil are prioritized in this research due to their central role in attracting investment and fostering commercial and strategic partnerships with the EU. In Chile’s case, an association agreement initially negotiated in 2005 gained new momentum with the signing of the Advanced Framework Agreement in December 2023 under Spain’s presidency of the Council of the EU. In Brazil’s case, the pursuit of biofuels (ethanol), strategic minerals (nickel, cobalt, lithium), and green hydrogen production has driven the EU’s climate agenda, leading to sectoral dialogues and accelerated negotiations. This research aims to contribute to mapping European energy diplomacy in Latin America, with particular attention to South American countries, especially Chile and Brazil.