The United Nations Industrial Development Organization (UNIDO), through the Global Energy Districts Program (GEDP), and the Latin American Energy Organization (OLACDE) signed a cooperation framework to promote the development of energy districts in Latin America and the Caribbean. The agreement was signed by Andrés Rebolledo Smitmans, Executive Secretary of OLACDE, and Rana Ghoneim, Director of UNIDO’s Energy and Climate Action Division, establishing a joint roadmap to strengthen enabling environments, technical knowledge, and the regional market for low-emission urban and industrial energy solutions.
This cooperation framework seeks to address structural challenges in the region, such as growing energy demand, the need to decarbonize industrial processes, the rapid increase in cooling demand in tropical climates, and the urgency of integrating renewable energy at greater scale.
Energy districts—integrated systems that combine energy production, storage, and efficient distribution in urban or industrial areas—can improve efficiency by 30% to 50%, reduce emissions, and optimize services such as heating, cooling, and industrial energy supply.
The new partnership, initially planned for 2026–2027, involves an estimated investment of USD 225,000 and will focus on four lines of action: support for public policy and institutional frameworks; knowledge sustainability and capacity building; market identification and analysis; and regional positioning through events and technical missions.
“We are taking a strategic step to scale proven energy efficiency and decarbonization solutions in Latin America and the Caribbean. Through the Global Energy Districts Program, UNIDO seeks to strengthen regulatory frameworks, technical capacities, and investment opportunities that enable cities and industries in the region to move toward more resilient, inclusive, and low-carbon energy systems,” stated Rana Ghoneim, Director of UNIDO’s Energy and Climate Action Division.
“For OLACDE, this alliance represents an opportunity to provide our member countries with technical tools, regional guidelines, and cooperation spaces that facilitate the integration of renewable energy and the modernization of urban and industrial energy planning. Energy districts can become a cornerstone of the regional energy transition,” said Andrés Rebolledo Smitmans, Executive Secretary of OLACDE.
Through this cooperation, OLACDE and UNIDO will consolidate a regional knowledge hub, organize seminars and technical publications, promote collaboration with universities, and facilitate public policy dialogues with member countries, contributing to regional energy integration and the fulfillment of climate commitments. It is worth noting that GEDP’s accumulated experience in Colombia—where since 2013 it has strengthened institutional capacities, promoted techno-economic studies, and catalyzed private-sector-led projects—has been key to advancing the program across Latin America, as well as in North Africa and Southeast Asia.
