The Effects of El Niño in Latin America and the Caribbean and Recommendations for Addressing It

ECLAC Special Report analyzing the effects of El Niño in Latin America and the Caribbean on economic activity, poverty, inflation, energy systems, and marine, fisheries and agricultural resources. The analysis estimates that an extreme El Niño event could generate a cumulative loss equivalent to around 2% of regional GDP and that the associated income losses could increase poverty by as many as 4.8 million people by 2030. The report examines risks to hydropower and other renewable energy sources, energy infrastructure, fisheries and aquaculture, crops, pastures, water availability, rural livelihoods and food security. It presents ten policy recommendations, including incorporating climate risk into long-term planning, strengthening early warning systems, developing resilient infrastructure, expanding climate insurance and financial risk-transfer mechanisms, strengthening value chains and ecosystems, deepening regional cooperation, diversifying energy systems, improving water management, deploying social protection measures, and promoting energy efficiency and demand management.