Latin American and Caribbean (LAC) countries arrived in Paris with ambitious national commitments to combat climate change. Mexico promises to reduce peak emissions even before China’s landmark commitment; Chile has said it will introduce a carbon tax; Brazil has put forth a strategic plan on reducing emissions and deforestation; and Caribbean nations have come with a dire message, reminding the world that their livelihoods are at stake if the world sticks with more business-as-usual, as the Caribbean continues to be subject to ever increasing sea-level rise, flooding, and extreme weather events.
But these promises and plans won’t come cheap. LAC governments will need to make significant financial investments to meet their climate change commitments. According to the Inter-American Development Bank, the region faces a $100 billion annual gap in financing for climate change mitigation and adaptation.