SUSTAINABILITY

Climate Change.  The issue of climate finance was discussed at the Climate Summit in Katowice (Poland) during the first half of December. Adaptation and mitigation actions could require investments of USD 60 billion by 2050. Financial institutions stressed that there would be opportunities for governments to meet the budgetary challenges associated with this.  For the period 2021-2025, the World Bank committed an additional investment of USD 200 billion that will be raised from contributions from the different institutions that compose the organization as well as from private funds. Approximately half will be disbursed in direct investment. Germany will contribute a further 1.5 billion euros to the Green Climate Fund in 2019, while the Adaptation Fund will receive an additional 129 million euros.

Financing for infrastructure development in Latin America was the focus of a side event organized by the Andean Development Corporation (CAF) on December 13. Authorities from Argentina, Chile, Ecuador, Panama, and Uruguay participated in the panel. The Chilean Environment Minister announced the signing of an agreement with CAF, while Panama’s Deputy Environment Minister reported that adaptation projects will begin in 2019 in Central America and, more specifically, in the Dominican Republic. It should be noted that in October a specific Green Fund was launched for this subregion with contributions from the European Union and the German government.

The Undersecretary of Climate Change of Ecuador spoke of the need to simplify the procedures for access to the Adaptation Fund and the lack of a regional office for the Fund. The Secretary of Environment and Sustainable Development of Argentina also stated that, beyond the commitment to allocate international financing to mitigation and adaptation actions in equal parts, the region’s priority is the development of green or resilient infrastructure for the protection of the most vulnerable populations.

International lenders estimate that it will take about UDS 35 billion to decarbonize the global energy system through the promotion of renewable energy and energy efficiency, 15 billion to adapt infrastructure and at least 2 billion more to reorganize land use to meet the growing demands of agricultural products without advancing in the deforestation of tropical ecosystems.

Next Steps

The World Bank pledged additional funds of $200 billion to finance climate action for the period 2021-2025, while Germany will contribute 1.5 billion euros to the Green Climate Fund in 2019. In 2019, projects to reduce greenhouse gas emissions will be developed in Argentina, Chile and Central America.