Rio+20 Earth Summit host Brazil is winning the clean energy race in Latin America and the Caribbean, but there are massive opportunities right across the continent if investors can identify them, according to a major new report to be released this week.

Brazil attracted close to 80 per cent of the cumulative $90bn invested in the region’s renewable energy sector between 2006 to 2011, according to a report to be launched on Tuesday by the Multilateral Investment Fund, a member of the Inter-American Development Bank Group, and Bloomberg New Energy Finance (BNEF).

The Climatescope report ranks Brazil as top of 26 nations assessed based on their enabling frameworks, clean energy investments, low-carbon business and clean energy value chains, and greenhouse gas management activities. It was closely followed by Nicaragua, Panama, Peru and Chile, while Mexico, Colombia, Costa Rica, Guatemala and Uruguay made up the rest of the top 10.

The report says Latin America and the Caribbean boast extraordinary renewable energy resources and much of the region has seen strong economic growth in recent years. As such it predicts that a combination of falling clean technology costs, rising electricity prices, and growing energy demand will mean that over the coming years renewables will be installed without the need for subsidies in many areas.

It also identifies at least 80 clean energy policies either in place or in late planning stages, most relating to energy market regulations and tax-based incentives, and outlines how microfinance schemes are expanding take-up of clean technologies among some of the region’s poorest people.

However, the report warns that the story across the region is still largely one of potential rather than achievement.

Brazil, the leading nation in the rankings, only scores 2.6 out of a possible five on the Climatescope scale and remains in ninth place in terms of global attractiveness in a separate league table for clean energy investors from consultancy giant Ernst & Young.

The Climatescope report says “massive opportunities” lie ahead if developers and manufacturers can identify opportunities for investment and government leaders can craft appropriate green policy frameworks.

“The sector still needs intelligent support mechanisms, and it certainly needs a raft of unhelpful barriers to be swept away,” said Michael Liebreich, chief executive of BNEF.

“We think [Climatescope] will prove of enormous value as Latin American and Caribbean countries strive to attract funds to accelerate their green growth trajectories.”