What is at stake for Latin America at the Paris Summit?

It is supposed to be the most important climate summit in history. During 11 days, the main world leaders must reach agreements to reduce greenhouse gas emissions and to lay the foundations of economies that are less dependent on fossil fuels and more resilient to climate change. 

The COP 21 is taking place at a decisive time for humanity: diverse studies warn that if it is not possible to keep the temperature of the planet below 2 degrees by 2100, the consequences may be disastrous, especially in developing regions. To prevent an increase in temperature, actions must be taken now. 

What is at stake for Latin American countries? Following are some important issues to be considered during and after the COP 21 in Paris. 

 

Effects of climate change on Latin America 

Latin America is responsible for only 12.5 percent of emissions, but would be one of the most affected regions by the rise of global temperatures. Among the most serious effects for the region are the following: 

• Reduction of rain in the Patagonia, Central Brazil, the Caribbean, and Central America.  
• Increase of droughts throughout the region, decreasing agro-industrial production and reducing Latin America's productive capacity. 
• Increase of tropical hurricanes. 
• Increase of ocean levels which would put the populations located by the ocean front risk. 

 

Adaptation and mitigation 

Facing this scenario, the most pressing challenges for Latin America, resulting from global warming, may be summarized in two words: adaptation and mitigation. 

Among the adaptation measures that have been implemented in Latin America, are the following: 

• Promotion of best practices in the management of natural resources. 
• Improvement of the most vulnerable infrastructure so they can resist the most intense environmental disasters. 
• Development of a great variety of crops that can withstand droughts, floods, and high temperatures. 
• Development of information networks and response plans to be used in cases of environmental disasters. 
• Efficient monitoring of time and climate change in the region. 

 

The following are mitigation measures: 

• Preservation of forests (the region has been able to do this more than any other region) to stop deforestation. 
• Preservation of biodiversity (Latin America is the region with the greatest biodiversity in the world). 
• Strengthen legislation to avoid the effects of global warming. We have examples in  Bolivia, Ecuador, Costa Rica and Brazil.
• Development of urban public transportation systems that respect the environment. 

Toward a new productive model 

To avoid the effects of a world which is between 2 and 4 degrees hotter, the COP 21 is also called to set the foundations of aq new productive model that is attractive to investors. In addition, for countries to gradually reduce their dependence on fossil energies, they must be guaranteed that alternative energies work and are profitable.  

It has been estimated that the financing necessary to lead toward a transition toward economies that are low in emissions and resilient to climate, reach close to USD 1 trillion per year until 2050. For this reason, to implement this new model the commitment of all actors is essential, from governments to the private sector, including multilateral organizations and the civil society. 

 

The role of multilateral development banks 

Multilateral banks have a key role to play in gathering funds to fight climate change: on the one hand, offer security and support investors, and on the other, develop innovative financial models that help mitigate the risks associated to sustainable development programs. 

The International Development Finance Club (IDFC) is a network created in 2011, made up by 22 national, international, and regional development financial institutions. Nineteen of its members belong to emerging countries. The IDFC contributes close to two thirds of the public contribution to fight climate change, so it has become the main source of funds for climate financing at a global level. The financial contribution of the FDIC has grown significantly in past years: it went from USD 89 billion in 2011 to USD 99 billion in 2013, reaching USD 100 billion in 2015. 

CAF, as a Latin American representative, together with national development banks and international funds such as the FMAM, the GEF, the Adaptation Fund, and the Green Fund for Climate, are currently key actors in green financing, generation of knowledge, and technical support to Latin America for the development of policies and climate strategies. 

 

Día CAF (CAF Day) at the COP 21

During the meetings of the COP 21, hundreds of events will take place, among which the Dia CAF (CAF Day) stands out. It will address the challenges and opportunities that climate change poses in Latin America. 

Among the participants in the meetings are Luis Enrique Berrizbeitia, CAF's Executive Vice-President, Hela Cheikhrouhou, Executive Director of Green Climate Fund, Anne Paugam, CEO of the French Development Agency, and other high representatives of the ministries of the environment from several countries in Latin America. 

Representatives from environmental organizations, development banks, the private sector, and public representatives, will meet on December 9th at the Marriott Ambassador Hotel in Paris, to discuss green financing, adaptation projects, and cities that are resilient to climate change, among other subjects.    

 

How to contribute to a sustainable planet 

In its strategic approach, CAF is aimed at mobilizing international resources to support actions in favor of mitigating emissions and adaptation measures for changing climate scenarios, as well as supporting its member countries to develop policies and climate strategies. In fact, in the past 10 years, CAF has contributed close to USD 1.5 billion. In 2014, CAF's green financing reached USD 2.81 billion, representing 24 percent of CAF's total approvals for that year. 

In addition, CAF bets on: 

• Developing economies that are low in carbon, to reduce the impact of global warming by means of developing mitigation actions for greenhouse gasses, and adaptation measures for changing climate scenarios. 
• Strengthening and supporting the development of carbon markets as an incentive that will help reduce greenhouse gasses. 
• Promoting policies, plans, programs, and projects to guide the construction of sustainable development, as well as the access to adaptation and mitigation financial resources. 
• Promoting the generation and management of knowledge related to adaptation to climate change. 

 For more information about CAF's work in this area, visit the climate change  section.