Can China Contribute to Climate Action in Latin America?

The author proposes that China can leverage its role as a major investor and creditor in Latin America to support climate action. Key suggestions include adopting a crediting mechanism for clean energy projects similar to Japan's JCM, implementing debt-for-climate swaps (specifically citing Ecuador's potential), and negotiating free trade agreements that prioritize environmental services and green goods.

• China could implement a crediting mechanism for clean energy projects in Belt and Road Initiative countries to save between 256 million and 768 million tonnes of oil equivalent annually. The author suggests using Japan's Joint Crediting Mechanism (JCM) as a reference, which allows credits for emission reductions to count toward a home country's Nationally Determined Contribution (NDC) under Article 6 of the Paris Agreement.
• Debt-for-climate swaps are proposed as a tool for financial relief and ecological protection, with Ecuador identified as a promising candidate due to its high debt to China (USD 18.37 billion, or 17.1% of its GDP). One specific proposal suggests China forgive USD 440 million of Ecuador's debt in exchange for the conservation of 200,000 hectares of Amazon rainforest, potentially avoiding 117 million tCO2 emissions.
• The author argues for 'greener' free trade agreements (FTAs) to lower the cost of eco-friendly technologies and services. Essential elements for such agreements include the inclusion of environmental services, clear definitions of 'green' goods and services, and the use of environmental provisions, such as voluntary sustainability standards and references to the Paris Agreement in the preamble.
• Trade barriers currently hinder the deployment of environmental goods in the region; for example, Brazil's average tariffs on environmental goods exceed 10%, with some levies on wind turbine components reaching 14%. Additionally, bilateral investment treaties between China and countries like Argentina and Uruguay are outdated, dating back to the early 1990s and failing to reflect current environmental considerations.

APA

Tang, S. (2022). Can China Contribute to Climate Action in Latin America? International Institute for Sustainable Development. https://www.iisd.org/articles/policy-analysis/china-climate-action-latin-america

Chicago

Tang, Sisi. Can China Contribute to Climate Action in Latin America? International Institute for Sustainable Development, 2022. https://www.iisd.org/articles/policy-analysis/china-climate-action-latin-america.

Wikipedia

{{cite report |last1=Tang |first1=Sisi |title=Can China Contribute to Climate Action in Latin America? |publisher=International Institute for Sustainable Development |date=26 September 2022 |url=https://www.iisd.org/articles/policy-analysis/china-climate-action-latin-america |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{tang2022can, author = {Tang, Sisi}, title = {{Can China Contribute to Climate Action in Latin America?}}, institution = {International Institute for Sustainable Development}, year = {2022}, month = sep, url = {https://www.iisd.org/articles/policy-analysis/china-climate-action-latin-america}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }