The bill encompasses incentives and support mechanisms for renewable energy and biofuel projects while opening regulatory pathways for new technologies including hydrogen in various forms and derivatives, biogas, biomethane and other renewable fuels. The proposal extends beyond conventional electricity generation to incorporate energy efficiency, energy savings and electromobility measures.
A central element involves creating an Energy Sector Taxonomy designed to identify and classify green projects eligible for specialized climate financing from domestic and international markets. Government officials indicated the absence of specific regulatory frameworks has previously limited Bolivian energy projects’ access to such funding. Vice Minister of Evaporitic Resources and Emerging Energy Technologies Luis Osorio noted the law aligns with a separate Climate Finance and Biodiversity Law being advanced by another ministry.
The legislation also establishes a research and innovation fund to support technological development linked to energy transition. The ministry indicated the law will coordinate horizontally with existing legislation including the Hydrocarbons Law, Electricity Law, Investment Law, Plant-Based Fuels Law and Comprehensive Waste Management Law.
The bill designates the Ministry of Hydrocarbons and Energy as the sector’s governing authority and applies to public, private, mixed, national and foreign individuals and companies. The legislation declares green energy project implementation a national priority of strategic character. Officials linked the initiative to declining hydrocarbon production, rising domestic demand and international market volatility, positioning it within broader energy sector reforms that include planned changes to electricity, hydrocarbons and other areas of Bolivia’s energy system.
This article was curated and published as part of our South American energy market coverage.
