Integrating Climate Action into Public Investment Management: Lessons from Argentina, Costa Rica, and Colombia

Climate change poses economic, social, and environmental challenges affecting millions of people in the Latin American and Caribbean (LAC) region. However, LAC governments have limited institutional and financial capacity to face these challenges. In this regard, a priority aspect is to incorporate climate change criteria into public investment management (PIM). This document analyzes the initiatives implemented by the governments of Argentina, Costa Rica, and Colombia to incorporate climate criteria in PIM and seeks to systematize the lessons learned. The analysis of these cases reveals progress in planning and integration of climate criteria as well as persistent challenges in coordination between entities, project evaluation and selection, budgeting, and risk management. It also highlights the need for standardized information at the project level and regulatory adjustments to facilitate the inclusion of climate criteria in the project cycle. The integration of climate action into public investment systems of the region is a gradual process that requires coordination, information, and regulatory adjustments to achieve climate-resilient investments.