Sustainability in South America: challenges and opportunities with BBVA’s support

South America is going through a key moment in redefining its development model through projects that combine social impact, efficiency and sustainability. There is a wide variety of opportunities for the region. From road infrastructure to green hydrogen, water, energy and digitalisation, BBVA is accompanying this transformation as a strategic financial partner.

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A key decade for sustainable development in South America

South America is at a turning point where social, environmental and infrastructure challenges become real opportunities to move towards more sustainable development. The need to close historical gaps in transport, access to drinking water, energy and digitalisation coincides today with an environment of greater climate awareness, technological advances and a more favourable financial framework for sustainable projects.

At BBVA, as a financial institution committed to progress and sustainability, we are actively participating in this transformation, promoting projects that are not only profitable and efficient, but also generate a positive social and environmental impact. Below are five outstanding examples to illustrate this regional evolution, with BBVA playing an active role as a key facilitator.

Chile: Leader in renewable energy and storage

In the last decade, Chile has consolidated its regional leadership in renewable energies, especially solar photovoltaic. In 2013, the country had less than 10 MW of installed solar capacity; today it exceeds 10,680 MW, representing 28.4% of the national energy matrix. This progress has been driven by privileged geographical conditions and a clear regulatory framework.

In the last two years, there has also been strong growth in battery energy storage system (BESS) projects, which allow the intermittency of renewables to be managed. BESS installed capacity is expected to reach more than 13,000 MWh (3250 MW * 4h) by 2027, according to the National Energy Commission (CNE).

BBVA has financed multiple renewable generation and BESS projects in the country, participating as a structuring or financing bank and promoting innovative financing structures.

Peru: Wastewater treatment as a national priority

Peru faces an urgent challenge in the sanitation of its water resources. Currently, only 50% of wastewater generated in urban areas is properly treated and in some rural areas this figure falls to below 20%.

Faced with this situation, ProInversión has launched an ambitious public-private partnership (PPP) programme to build new wastewater treatment plants (WWTPs). It is planned to award 14 WWTP projects between 2025 and 2027, with an investment of approximately US$ 2 billion.

BBVA, as a financial advisor or financing bank, is supporting several consortiums participating in these bidding processes.

Colombia: Road infrastructure, 4G roads and their social impact

While Europe has led the charge on climate regulation, North America has shifted gears with landmark legislation like the Inflation Reduction Act, which incentivizes industrial modernization under clearly defined environmental criteria. Meanwhile, Asia—led by China, Japan, and South Korea—is advancing rapidly on technological innovation and operational efficiency, deploying investments in carbon capture, electric arc furnaces, green hydrogen, and new environmental performance metrics. These strategies are not only aligned with national climate commitments, but also serve as replicable models for other emerging economies.

Mexico and Latin America: A Transition with Its Own Identity

Colombia's 4G road concessions programme represents one of the most ambitious infrastructure plans in Latin America. With more than 8,000 km of roads under concession and more than US$ 20 billion of investment, it has transformed connectivity in previously isolated regions.

Projects such as Ruta del Sol, Mar 1, Mar 2 and Pacífico 3 have reduced travel times by more than 40% in some sections and have generated tens of thousands of jobs.

BBVA has been a key funder in several of these projects, facilitating the economic and social development of the connected regions.

Digitalisation and the data centre opportunity

While the world is digitising rapidly, South America still shows a low penetration of data centres. According to a recent New York Times article, most of the global data centres for A.I. are concentrated in the US, Europe and Asia.

This technological gap represents a strategic opportunity for the region. BBVA is already supporting initiatives related to digital infrastructure, including fibre optics, data centres and sustainable mobile networks.

Green Hydrogen: A new frontier for decarbonisation

South America is positioning itself as a key player in the emerging global green hydrogen industry. Several countries in the region, such as Chile, Brazil, Uruguay and Colombia, stand out for having exceptional natural resources for the production of hydrogen from renewable energies. Geographical conditions allow solar and wind energy to be generated in an abundant, competitive way, in some cases with capacity factors that allow continuous or almost uninterrupted operation.

Chile, for example, has plans to become one of the most important exporters of green hydrogen worldwide. According to its National Green Hydrogen Strategy, the country aims to have 5 GW of electrolysis under development by 2025 and to start exports before 2030. Brazil and Uruguay also have multiple pilot projects and industrial scaling plans underway.

In this context, BBVA is actively exploring opportunities to finance green hydrogen projects, both in their infrastructure phase and in production and export. A combination of clean energy, low cost and political ambition positions South America as a strategic region for the hydrogen economy of the future.

BBVA's role in sustainable transformation

The above examples show that sustainability in South America is not an abstract aspiration, but a concrete, dynamic and strategic reality. BBVA, as an institution committed to a greener and more inclusive future, is actively contributing to this transformation.

Through our Project Finance team and our customers, we are financing key projects in energy, water, transport, digitalisation and decarbonisation. This commitment is also reflected in our prominent position in the international League Tables: BBVA has been in the LatAm Project Finance top-10 in recent years, according to IJ Global.

Our vision is clear: to accompany South America on its path towards a sustainable, resilient infrastructure that generates social progress.