economy and politics

COP27 event: Investment requirements for compliance with the NDCs in LAC

Context

As of September 2022, 27 of 33 countries in Latin America and the Caribbean have updated their commitments to reduce greenhouse gas emissions. In short, the commitments represent reductions of between 22% and 28% compared to a trend scenario. On the other hand, several of them have presented greater ambition in adaptation, key given the high vulnerability of the region to climate change. Both adaptation and mitigation actions represent imperatives for which their financing must be guaranteed, in the face of other types of equally pressing needs in development financing.

In the framework of the Paris Agreement, the means of implementation are an unavoidable issue and, particularly, climate finance is relevant. The current process in the Framework convention means that the recipient countries of climate finance have to present the financing needs as a guide for the potential financiers of the climate finance commitment. To this end, GRULAC, bringing together all the countries in the region, has requested the Economic Commission for Latin America and the Caribbean to estimate the amount of investment to comply with the NDC. In response to this request, ECLAC has entered into an evaluation process whose first stage has been to prepare a document that aims to make an evaluation of the existing efforts and, based on this, a partial estimate, based on the review of those existing studies and own basic estimates. Subsequently, and upon receiving feedback from GRULAC member countries, a co-creation process will be established for the climate finance needs assessment for Latin America and the Caribbean.

The objective of this event is to present the main results of the document, listen to the impressions of the GRULAC countries and discuss a work plan to make specific sectoral estimates that are a contribution to policymakers and the financial sector.

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