Climate-smart investment potential in Latin America: a trillion dollar opportunity
As a result of the successful United Nations Framework Convention on Climate Changes (UNFCCC) 21st Conference of the Parties (COP21) in Paris in December 2015, the international community has committed to limit the level of global warming at or below 2° Celsius. The historic agreement made in Paris will be implemented through country-led greenhouse gas (GHG) reduction commitments known as Nationally Determined Contributions (NDCs), which to date have been submitted by 189 countries covering 95 percent of global GHG emissions. For the private sector, NDCs1 offer a clearer signpost of the investment direction countries intend to follow as the global economy travels down a low-carbon, climate resilient highway.
There is both an urgent need and an enormous opportunity for the private sector to help turn NDCs and the climate policies and plans that underpin them into climate-smart infrastructure investments. This report offers IFCs assessment of how the formulation and adoption of NDCs by Latin American and Caribbean (LAC) governments presents the private sector with huge investment prospects of untapped climate-smart opportunities in a part of the world that is endowed with a wealth of natural capital and already is regarded as one of the great frontiers for climate smart investment.