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

This briefing examines the implications of the Advisory Group on Climate Finance (AGF) recommendations for the Latin America and Caribbean (LAC) region. It details the region's specific climate vulnerabilities, its unique emissions profile dominated by land-use change, and the significant funding gaps for both mitigation and adaptation. The document argues that while the AGF's proposed public and private funding mechanisms offer opportunities, the LAC region must actively ensure it receives an equitable share of resources, particularly for adaptation grants, to avoid being overlooked by existing official development assistance patterns.

• The Latin America and Caribbean (LAC) region has a unique emissions profile where land-use change contributes more to greenhouse gas emissions than energy sources. This is primarily driven by South America, whereas in Central America and the Caribbean, energy emissions are more significant, accounting for approximately 66% of total emissions.
• There is a massive shortfall in climate change investment in the LAC region. By 2030, annual mitigation needs are estimated at US$40–80 billion, yet cumulative mitigation investment from 2003–2010 was only around US$7.5 billion. Similarly, annual adaptation requirements are US$18–21 billion, while cumulative payments from 2003–2010 totaled only US$60 million.
• The LAC region faces a high risk of being overlooked in the disbursement of adaptation funds. Despite having adaptation needs that represent about 21–22% of the total for the developing world, the region only receives approximately 8% of official development assistance (ODA).
• The region's adaptation investment requirement is higher on a per capita basis than in other developing regions, at US$34 per person per year, compared to US$18 in Africa and US$11 in Asia.
• To attract private sector investment for low-carbon growth, the LAC region must focus on reducing emissions from deforestation and land-use change, which account for nearly 50% of the region's emissions. The document suggests using public finance mechanisms, such as policy-risk cover, to catalyze this investment, noting that every dollar spent on leveraging private investment could generate three dollars of private investment.
• Certain countries in the LAC region exhibit extreme vulnerability to climate change. Honduras is identified as the most vulnerable country in the world, and other countries with Caribbean coastlines, including Guyana, Suriname, and Venezuela, also face very high physical exposure.

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} }