In the lead up to the next United Nations Framework Convention on Climate Change (UNFCCC) conference, global attention has been focusing on the actions of major geopolitical players. The European Union’s latest agreement on emission reduction targets as well as commitment to renewables from large emitters such as China are setting the pace for what is expected to be another tough round of negotiations in Lima, Peru in December.

At the same time, it’s easy to overlook the significant developments taking place in smaller countries. Although they account for a much smaller proportion of greenhouse gas emissions, investments in renewables is not only seen as a way to combat climate change, but also reduce the dependency on oil and diesel imports and foster economic development.

A recent study by Bloomberg New Energy Finance showed that investment in clean energy in Central America (excluding Mexico) amounted to $317m…