Latin America and the Caribbean (LAC) region hosts more than 40% of the world’s biodiversity, 30% of fresh water available on earth and almost 50% of the global tropical rainforests.

“Nature-based solutions” are key in mitigation and adaptation to climate change while also contributing to other priorities such as economic recovery, biodiversity, and clean water. LAC region needs to combine the opportunity that natural capital and biodiversity bring, with the acceleration of ecosystems of innovation and entrepreneurship aiming at inclusion and diversity.

This report, led by the Inter-American Development Bank Lab (IDB Lab) with the support of the Latin-American-born initiative “AI for Climate by C Minds”, aims to add value in the understanding of how the harnessing of digital tools can help untap opportunities in LAC for climate action and the protection of its rich natural ecosystems. The rise of digital tokens has become a key aspect of digital transformation as they are allowing new ways of trading value and sharing information, among other factors. Digital tokens are currently being explored as mechanisms to:

• Fundraise for nature-based projects
• Participate in the carbon market – decarbonization projects
• Share data between various organizations and information points
• Create supply chain transparency