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

The document addresses the financing needs and policy tools for the transition to low-carbon and climate-resilient economies in the region. It highlights that climate change is one of the most significant challenges of our time, with already evident impacts that threaten the development and well-being of the population. ECLAC points out that, despite the commitments made by the countries of the region to reduce their emissions and move towards carbon neutrality, they are still far from achieving the objectives necessary to limit global warming to safe levels. The importance of increasing investments in mitigation and adaptation to climate change is highlighted, which would not only have environmental benefits, but also economic and social benefits, promoting growth, job creation and sustainable development. Among the priority sectors for climate action are energy, transportation, agriculture, and the management of water and forest resources. The document emphasizes the need for adequate and accessible financing for the countries of the region, as well as integrated policies and strategies that promote a fair and equitable transition towards more resilient and low-emission development models.