Sectoral policies for scaling-up low-carbon investments in Argentina, Brazil and Peru – Analysis of a dynamic and ongoing process.

This report, the first in a series of three, focuses on the policy landscape needed to enable a transition to net zero emissions, identifying key policies at a sectoral and national level to support investments towards decarbonisation in Argentina, Brazil, and Peru. It also provides a brief description of the current general investment environment and analyses factors that influence international climate finance flows.

Achieving the goal of limiting global temperature increase to 1.5°C above pre-industrial levels, as agreed under the Paris Agreement, requires a significant increase in low-carbon investments across all sectors of the economy. While there is a broad range of factors that determine the investment climate in a country and/or sector, this report builds on the assumption that a long-term vision in line with the Paris Agreement, underpinned by a comprehensive policy framework and incentives, is crucial to provide investors with the planning certainty to mobilise private capital. As a region highly vulnerable to the impacts of climate change, Latin American countries have demonstrated their commitment to the goals of the Paris Agreement to reduce global greenhouse gas emissions. Our analysis shows, however, that there are significant differences across countries and sectors in the diffusion of low-carbon technologies and activities and sectoral policies for scaling up low-carbon investments.