Regional implications of the AGF recommendations: Latin America and Caribbean region

The document outlines the climate finance requirements for the Latin America and Caribbean (LAC) region, estimating annual mitigation needs between US$40–80 billion and adaptation needs between US$18–21 billion by 2030. It highlights the region's unique emissions profile, where land-use change is the primary driver of greenhouse gases, particularly in South America. The briefing argues that the AGF's recommendations for public-private partnerships and carbon-based revenue sources offer significant opportunities, provided that the region secures an equitable share of adaptation grants and establishes a robust framework for reducing emissions from deforestation (REDD+).

• The Latin America and Caribbean (LAC) region faces significant investment gaps; by 2030, annual mitigation needs are estimated at US$40–80 billion and annual adaptation needs at US$18–21 billion. Cumulative mitigation investment from 2003–2010 was only US$7.5 billion, while cumulative adaptation payments were just US$60 million.
• The LAC region's emissions profile is unique because land-use change generates more emissions than energy sources, with nearly 50% of the region's emissions coming from land-use change, which is four times the global average.
• Physical vulnerability to climate change is highest for countries with Caribbean coastlines, including Honduras, Guyana, Suriname, and Venezuela. Honduras is identified as the most vulnerable country in the world to climate change.
• The region is well-positioned to attract private low-carbon investment, particularly in renewable energy (biomass and hydro) and landfill gas. However, attracting private capital for deforestation reduction requires integrating land-use change into carbon market architecture and using public finance mechanisms to mitigate policy risks.
• There is a risk that the LAC region will be overlooked in the disbursement of adaptation funds. While the region's adaptation needs represent approximately 21–22% of the developing world's total, it currently receives only about 8% of Official Development Assistance (ODA).
• Proposed AGF public funding sources, such as auctioning emission allowances in developed countries, carbon taxes, and redirecting fossil fuel subsidies, are viewed as attractive because they provide incentives for developed countries to reduce emissions and are unlikely to negatively impact the LAC region.

APA

Fankhauser, S., & Ward, J. (2010). Regional implications of the AGF recommendations: Latin America and Caribbean region. Climate and Development Knowledge Network. http://cdkn.org/wp-content/uploads/2010/12/AGF-Implications-LAC-CDKN-Special-Briefing-small.pdf

Chicago

Fankhauser, Sam, and John Ward. Regional implications of the AGF recommendations: Latin America and Caribbean region. Climate and Development Knowledge Network, 2010. http://cdkn.org/wp-content/uploads/2010/12/AGF-Implications-LAC-CDKN-Special-Briefing-small.pdf.

Wikipedia

{{cite report |last1=Fankhauser |first1=Sam |last2=Ward |first2=John |title=Regional implications of the AGF recommendations: Latin America and Caribbean region |publisher=Climate and Development Knowledge Network |date=November 2010 |url=http://cdkn.org/wp-content/uploads/2010/12/AGF-Implications-LAC-CDKN-Special-Briefing-small.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{fankhauser2010regional, author = {Fankhauser, Sam and Ward, John}, title = {{Regional implications of the AGF recommendations: Latin America and Caribbean region}}, institution = {Climate and Development Knowledge Network}, year = {2010}, month = nov, url = {http://cdkn.org/wp-content/uploads/2010/12/AGF-Implications-LAC-CDKN-Special-Briefing-small.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }