Biodiversity and Productive Development: Extractivist traps and symbiotic innovation ecosystems in Latin America & the Caribbean

The future of the link between biodiversity and development in Latin America and the Caribbean depends on mobilizing long-term capital with a patient vision, aligned with natural capital, and on overcoming short-term financial schemes that drive degradation. To escape the middle-income trap, the region needs to significantly increase its investment in R&D—from US$35 billion to US$130 billion annually—and transition to disruptive, nature-inspired innovations, a scalable path to productive development based on biodiversity. The report highlights that territorial inequalities in scientific and technological capacities are critical, as the most biodiverse areas often lack them, requiring a redistribution of R&D investment to improve equity and efficiency. In this context, CAF's work is key to attracting patient capital, reducing risks, promoting regional scientific cooperation, and integrating scientific knowledge into policies and financing, as supported by the 2024 Chicó-Bogotá Declaration.