The Social License in Latin America is essential for the acceptance and approval of projects, especially in the extractive sector. This intangible and dynamic concept reflects the alignment between social expectations and the distribution of costs and benefits among the actors involved. It is a social arrangement that evolves with interactions between communities, governments, and businesses, highlighting the importance of governance, procedural and distributive justice, and nationalism.
The perception of equity and justice by local communities, together with the quality of governance, plays a central role in the viability and sustainability of projects. Strengthening government institutions and understanding community priorities are critical steps in designing effective engagement and information programs. In Latin America and the Caribbean, social licensing has become a critical requirement for the success of energy projects. Despite the potential of renewable energy, historical mistrust of companies and governments continues to hold back key initiatives.
