The Dark Side of the Energy Transition

Green Colonialism in Southern Honduras

(published in May 2026)

The energy transition narrative tends to be a sunny one: more renewables, less fossil fuels, promises of decarbonization and development. However, the Central American experience, and in particular that of Honduras, reveals a darker, more complex story. To meet political commitments to reduce greenhouse gas emissions, many countries are expanding renewable energy to decarbonize their economies. In Central America this process has been driven by corporate agendas wrapped up in sustainability rhetoric. International banks and institutions have made their loans, policy support, and direct financing to national governments conditional on creating markets and incentivizing — and subsidizing — private sector investment, especially in countries or regions considered adverse or risky for investment.

In Honduras, the international push for greater investment in renewables did not mark the beginning of a transition away from fossil fuel-based energy generation, nor did it deliver on its promises of employment and development for those most directly affected. Instead, it added a new source of energy to those already in place and opened up a new market for wealthy national and transnational investors.

This report looks in detail at the Los Prados solar park in Namasigüe, Choluteca, and shares testimonies heard at the July 2025 meeting from communities affected by the project, affected not only by  lawsuits against community leaders who reject solar parks in local courts, but by several international arbitration claims.