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Where there is hope, there is opportunity for low carbon and climate resilient economies in Latin America and the Caribbean
03/22/2023 Since 1 year

Based on the recent synthesis report of its sixth assessment cycle on climate change carried out by the Intergovernmental Panel on Climate Change (IPCC), the Inter-American Development Bank (IADB) published on its blog some of the main sustainable development opportunities for Latin America and the Caribbean (LAC) economies and the actions executed by the bank to promote them.

According to the article, the transition to a net zero emissions economy is a great opportunity for development and growth for the region. Decarbonizing electricity with 100% renewable energy sources and favoring electromobility mean cheaper solutions and cleaner air in the future. Modernizing agricultural practices to take advantage of nature-based solutions and combining crops will make agriculture more resilient and less polluting. Decarbonized buildings can help reduce heating, cooling and lighting loads while providing quieter and more affordable homes.

According to the report released by the IPCC, LAC countries must intensify actions to adapt to the new climate reality or face serious costs, damages, and losses. Understanding long-term adaptation planning (LTAP) is crucial to respond to the impacts of climate change, the IDB and French Development Agency (AFD) partnered with the World Resource Institute (WRI) to understand the state of the art of adaptation mainstreaming into planning exercises and compile lessons learned from eight countries including Argentina, Barbados, Colombia, Costa Rica, Guatemala, Jamaica, Mexico and Uruguay.

Comprehensive climate strategies can help governments develop roadmaps to achieve climate goals. This is why the IDB carries out investments, financial planning, and sectoral changes in energy, transportation, and land use in more than 16 countries in the region. Another relevant example is the development of a platform for Finance Ministers as a space for dialogue on innovation in policy, governance and financing for climate action. The IDB also offers a set of financial products aimed at promoting climate action and the fight against biodiversity loss, with a record figure of 5.9 billion dollars in 2022. Relevant projects include the Amazon Initiative and programs together with the Green Climate Fund.