Research Insights: How Much Will It Cost to Achieve the Climate Goals in Latin America and the Caribbean?
Peer Reviewed
Date issued
August 2022
Publication
Subject
Climate Change;
Infrastructure Development;
Gross Domestic Product;
Investment;
Public Expenditure;
Global Warming Politics;
Capital Inflow;
Poverty;
Paris Agreement;
Finance;
Health;
Delivery of Health Care
JEL code
Q54 - Climate • Natural Disasters and Their Management • Global Warming;
H51 - Government Expenditures and Health;
H52 - Government Expenditures and Education;
H53 - Government Expenditures and Welfare Programs;
H54 - Infrastructures • Other Public Investment and Capital Stock;
H55 - Social Security and Public Pensions;
H23 - Externalities • Redistributive Effects • Environmental Taxes and Subsidies
Category
Catalogs and Brochures
Meeting the climate change challenge requires structural transformations in infrastructure, health and social protection, and financial institutions. Climate action calls for a redirection of existing financial flows. An adequate response requires redirecting financial flows to achieve annual spending of 2 to 8 percent of GDP on the provision of infrastructure services and 5 to 11 percent of GDP on social programs. Specific financing sources, such as green taxes and sustainable bonds, can finance part of climate efforts. However, to redirect public and private spending and foreign investment into solutions consistent with climate goals, governments will also need to reform policies and regulations in all sectors.
