The Economic Commission for Latin America and the Caribbean (ECLAC) participated in the General Assembly of the Carbon Pricing Platform in the Americas (CPA), with the presentation titled “Carbon prices in Latin America and the Caribbean. Technical and operational aspects policy”. This annual event brings together governments, international organizations and other key partners to discuss carbon pricing mechanisms as critical instruments in the transition to a cleaner, carbon-neutral economy.
On this occasion, Jimy Ferrer, economic affairs officer of the Climate Change Economics Unit of ECLAC, highlighted that to achieve the region’s climate objectives it is necessary to implement profound economic changes, including increasing financing flows and re- directing investments towards sustainable sectors. During his speech, Ferrer stressed that carbon pricing not only helps to internalize the social costs of greenhouse gas (GHG) emissions, but also contributes to creating fiscal space to finance development objectives, including compliance of climate commitments.
Key messages from the presentation:
- Economic transformation: Achieving climate goals will require significant adjustments to investment rules and policies, including carbon pricing instruments that better reflect the costs of emissions externalities.
- Ministries of Finance: Governments must take a more active role, especially through Ministries of Finance, to ensure that carbon prices are consistent and have greater coverage in the region.
- Subsidy reduction: Profound changes in fuel pricing policy and the elimination of fossil fuel subsidies are essential to move towards meeting emissions reduction commitments.
The CPA General Assembly 2024 provided a unique platform for the exchange of experiences and knowledge between countries in Latin America and the Caribbean, in a coordinated effort to accelerate the implementation of policies that enable a just and sustainable ecological transition.
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