The 33 countries of Latin America and the Caribbean account for 8.5 percent of the global population — approaching 665 million people. A significant majority live in urban areas; in fact, this region is the most urbanized in the developing world.
The region’s natural wealth is vast. Nearly 50 percent of the total land area is covered by forest. Containing some of the most species-rich biomes on Earth, it is also home to 50 percent of the world’s biodiversity.
Parts of the region are vitally important as a carbon sink. For example, the Amazon soaks up five percent of all greenhouse gas emissions. At the same time, Brazil and Mexico are amongst the top 20 contributors to global emissions.
The Caribbean is also home to Small Island Developing States (SIDS): they include Jamaica, St. Lucia, and St. Vincent and the Grenadines.
Investing in Latin America and the Caribbean
Transitioning to a low-carbon economy offers an opportunity for inclusive development. The changes to production and consumption that need to be made by 2030 to stay on track for full decarbonization by 2050 could create 15 million jobs.
The Climate Investment Funds (CIF) is supporting the ambitious climate change plans that have been set out by multiple countries in the region.
Brazil: The CIF’s Forest Investment Program (FIP) is enabling the protection of the Cerrado — among the largest of the country’s forests. Forty-eight percent has been converted to intensive agricultural use and cattle ranching. FIP’s grants and near-zero interest financing is promoting the sustainable management of the area in order to maintain carbon stocks, reduce deforestation, decrease emissions, and protect forest-dependent Indigenous groups.
SIDS: Funding from CIF’s Clean Technology Fund (CTF) and its Pilot Program for Climate Resilience (PPCR) supports regional, thematic, and country-specific programs across the Caribbean. PPCR is enabling Jamaica and five other Caribbean nations to enhance its climate resilience and disaster- risk management abilities. Priority projects include improving the quality and accessibility of climate information services, conducting information campaigns to increase the uptake of adaptation measures nationwide, and protecting climate-vulnerable livelihoods, such as the country’s fishing sector.
Peru: Forty-five percent of all deforestation has taken place on lands with no legal status. Many forest communities have lost out to agriculture, gold, oil, and gas exploitation. In Peru’s Ucayali region — home to three Indigenous groups and 3.98 million hectares of forest, FIP is helping forest- dependent communities to sustainably manage their landscapes. For native communities, the formal registration of legal land titles is an important project objective.
Chile: CTF is helping Chile overcome its lack of experience in renewable energy and energy efficiency by paving the way for large-scale investment. In particular, concessional financing is helping to de-risk investments in early-stage geothermal development and large-scale solar power, including Chile’s first concentrated solar power plant.
The Climate Situation
Regarded as highly vulnerable, climate change-related disasters are increasing. Temperature extremes are impacting agricultural productivity. Crop yields in some areas are expected to fall by 20 percent by 2050.
Biodiversity and cities are also threatened. The 6th edition of the Intergovernmental Panel for Climate Change Report 2022 classifies the cities as “hotspots” of climate risks. This would be a major concern for a highly urbanized region.
Eighty percent of the Caribbean’s coral reefs have been lost in recent years, while Andean glaciers have melted faster than every mountain region in the world. By 2050, sea-level rises are projected to cause up to $1.2 billion in annual losses in the region’s 22 largest coastal cities. Meanwhile, deforestation remains a major threat to biodiversity, ecosystems, and related livelihoods.
The Benefits of Partnering with the Climate Investment Funds
CIF is a global leader in the delivery of climate finance for piloting and scaling cutting-edge climate solutions and innovations in low- and middle-income countries.
Established at the request of the G8 and G20 in 2008, CIF administers a collection of targeted, cutting-edge programs that help resource-strapped nations fight the impacts of climate change and accelerate the shift to a low-carbon economy. Applying a programmatic approach, CIF supports an inclusive and just climate-smart future, focusing on diverse partnerships that de-risk green markets and unlock additional investments and financing.
Through contributions from 14 donor countries, CIF is supporting more than 375 projects in 73 low- and middle-income countries on the frontlines of the climate crisis. CIF’s track record in climate finance is unrivaled.
CIF’s partnerships are expected to channel more than $60 billion from various sources, including governments and the private sector, to achieve global impact through ground-breaking projects. CIF directly supports 10 of the United Nations’ 17 Sustainable Development Goals.
Latin America & the Caribbean Projects
Event Spotlight
Climate action and development are inextricably linked. This link has been confirmed by a new independent evaluation that assesses and analyzes how climate finance programs can lead to broader social, economic, environmental, and market development impacts.
May 03, 2023
09:00 AM - 10:30 AM EST
