Climate-related investments needed in the region through the end of the decade stand at between $470 billion and $1.3 trillion. Governments are unable to fund such amounts, so they are increasingly turning to the private sector to raise capital and relieve the pressure.
The abundance of renewable resources places the regional industry well below many of its rivals in terms of greenhouse gas emissions per unit of electricity generated — a unique advantage that can help the region move rapidly towards the net-zero emission target.
High-speed 5G Internet connections will help more remote work and information access, reducing emissions from cars and planes, and facilitate self-driving vehicles, leading to fewer accidents and shorter commutes, as well as the widespread adoption of smart buildings with less energy use.
Latin America and the Caribbean is in prime position to step in and alleviate global food shortages as climate change looms as a global threat, particularly if the region leverages digital solutions, a new report developed by IDB Invest in collaboration with Accenture shows.
Addressing climate change in the region calls for financial institutions to step up their role in channeling capital towards green investments, including the green transition. It also calls for boosting impact measurement and reporting capacity to avoid green washing.
With greater access to much-needed global capital, Latin America and the Caribbean can become the world’s leading renewable energy hub, taking advantage of ample sunlight and available land.