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dc.titleClimate Action in Latin America and the Caribbean: Fiscal Policies and the Indispensable Role of Finance Ministries
dc.contributor.authorCárdenas, Mauricio
dc.contributor.authorPeña, Camilo
dc.contributor.orgunitFiscal Management Division
dc.contributor.orgunitInstitutions for Development Sector
dc.coverageLatin America and the Caribbean
dc.date.available2024-07-16T00:07:00
dc.date.issue2024-07-16T00:07:00
dc.description.abstractCountries in the Latin American and Caribbean (LAC) region face escalating challenges from climate change due to geographic location, economic reliance on climate-sensitive sectors, and increasing frequency, intensity, and duration of extreme weather events. Despite international commitments and efforts from LAC countries, current mitigation and adaptation investments are insufficient to avert significant climate impacts. Estimations of financial needs vary significantly depending on the source, ranging between US$228 billion and US$513 billion per year for mitigation, while annual adaptation flows range from US$65 billion to US$250 billion. As in other regions of the world, LAC countries have prioritized mitigation over adaptation. To achieve a more balanced approach the region requires a change in fiscal policies. Exploring fiscal space for increased investments in climate in the context of severe postpandemic social needs and the need to prevent and prepare for future pandemics is challenging. It is imperative for finance ministries to decisively engage by changing the composition of public investment while leveraging private sector engagement. The use of green budgeting methodologies, regulation, public debt strategies, and state-owned enterprises for this purpose is crucial. This report offers a diverse array of tools and policies for finance ministries to bolster climate action across three core pillars: (i) developing climate strategies for nations, (ii) creating the right incentives to mobilize climate financing, and (iii) ensuring fiscal management consistent with climate goals.
dc.format.extent116
dc.identifier.doihttp://dx.doi.org/10.18235/0013066
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Climate-Action-in-Latin-America-and-the-Caribbean-Fiscal-Policies-and-the-Indispensable-Role-of-Finance-Ministries.pdf
dc.language.isoen
dc.publisherInter-American Development Bank
dc.subjectInvestment
dc.subjectClimate Risk
dc.subjectFinance
dc.subjectClimate Change
dc.subjectFiscal Policy
dc.subjectClimate Finance
dc.subjectEconomy
dc.subjectRenewable Energy
dc.subjectTaxonomy
dc.subjectFinancial Bond
dc.subject.jelcodeQ54 - Climate • Natural Disasters and Their Management • Global Warming
dc.subject.jelcodeQ56 - Environment and Development • Environment and Trade • Sustainability • Environmental Accounts and Accounting • Environmental Equity • Population Growth
dc.subject.jelcodeH23 - Externalities • Redistributive Effects • Environmental Taxes and Subsidies
dc.subject.jelcodeH87 - International Fiscal Issues • International Public Goods
dc.subject.jelcodeO23 - Fiscal and Monetary Policy in Development
dc.subject.jelcodeO44 - Environment and Growth
dc.subject.jelcodeO53 - Asia including Middle East
dc.subject.jelcodeO57 - Comparative Studies of Countries
dc.subject.keywordsmitigation;adaptation;climate change;Fiscal policy;green fiscal frameworks;investment strategies;finance ministries;sustainable development;economic vulnerability;Infrastructure Investment;policy instruments;public spending;private sector involvement;regulatory frameworks;Fiscal space;debt sustainability;Insurance;Green taxonomy;green budgeting;green tagging;fossil fuels;Renewable energy;Carbon Pricing;renewable energy transition
dc.typeTechnical Notes
idb.identifier.pubnumberIDB-TN-02963
idb.operationRG-T4120
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