The economics of climate change in Latin America and the Caribbean, 2023: financing needs and policy tools for the transition to low-carbon and climate-resilient economies

Climate change is increasingly evident and is having damaging repercussions. Latin America and the Caribbean is no exception, and is in fact one of the most vulnerable regions, with droughts, forest fires and extreme storms increasing in frequency and intensity. This is occurring amid the backdrop of low growth in the region, reflected in a decade of stagnation, that jeopardizes the progress made in terms of development and, above all, limits the countries’ ability to improve the well-being of their populations in a sustainable manner. At this crossroads, climate action offers an opportunity to boost growth and innovation, create jobs and better integrate countries of the region into the global economy. The investments, plans and policies required to tackle the climate crisis may also help to achieve economic and social goals. This document outlines the overall economic impacts of climate change and describes regional mitigation and adaptation commitments. On that basis, an estimate is made of the required investments, examining the specific polices being developed in the region to enable them.