Chapter 9: Sustainable Finance Policy Path Towards Decarbonisation in Latin America and the Caribbean

Despite contributing minimally to global greenhouse gas emissions, the Latin America and the Caribbean (LAC) region remains highly vulnerable to climate impacts, necessitating urgent action, particularly in sectors such as agriculture and land use. Sustainable finance is seen as crucial for achieving global decarbonisation goals, yet substantial investment gaps persist in the LAC region, urging accelerated and equitable flows of climate finance. An analysis of the region underscores the critical challenges and opportunities in tackling climate change, sustainable finance, land use change, and energy transition. Land use change, notably in agriculture and forestry, poses significant threats to biodiversity and climate resilience, necessitating a transition to sustainable practices. Energy transition in the region, while presenting challenges due to its reliance on fossil fuels, offers opportunities with the potential for clean energy sources and abundant critical minerals. Coordinated efforts across sectors and stakeholders, along with effective policies and frameworks, are essential for driving sustainable development, enhancing resilience, and ensuring equitable outcomes in the LAC region.