ISSN: 2173-8254

Nº 24 December 2023

Global Challenges, Regional Solutions: Latin America and the Caribbean Facing the Climate Crisis and Biodiversity

This edition of the Economic and Development Report (EDR) examines the challenges and opportunities posed by climate change actions and the protection of ecosystems and biodiversity in Latin America and the Caribbean. The report underscores three messages of relevance to all countries: the importance of adaptation, the need to contribute to global mitigation, and the urgency of preserving natural capital as a key factor in the development process itself. It also highlights that policies to address these challenges may vary based on the diversity of resources and risks in each country, with potential tensions between conflicting objectives and opportunities for synergies that should be leveraged. Therefore, this document seeks to contribute to the discussion on the best options for public policies to promote productive economies with low carbon emissions, greater social inclusion, and sustainable use of natural resources. The financing needs to meet development, climate, and biodiversity preservation goals are immense. For this reason, the CAF - Latin American Development Bank has committed to increasing green financing to 40% of its approvals by 2026 and to being one of the most active institutions in the region in mobilizing resources from major green funds and international partners.