An article published in the IDB Invest blog highlights the opportunity for Latin America and the Caribbean (LAC) to move towards the goal of net zero emissions. The authors state that global markets are beginning to prefer imports of goods with a low carbon footprint thanks to the implementation of tariff mechanisms that would benefit such products. The application of such schemes in the LAC region could increase its manufacturing competitiveness, given the abundance of renewable energy resources.

IDB Invest has accompanied key players in the manufacturing industry and financial institutions in the LAC region in the study and development of their strategies, taking as a reference decarbonization scenarios based on national targets, as well as sectoral guidelines such as those developed by the Science Based Targets (SBTi) initiative and UNEP FI guidelines for the NetZero Banking Alliance.

Finally, the authors conclude that the banking and corporate sector must adapt to generate conditions for access to financial and technological instruments that support decarbonization, as well as advisory services, knowledge communities and automated tools to translate climate science, facilitate and accelerate its implementation.