Trade and Climate Change Mitigation and Adaptation in Latin America: A Framework for International Cooperation

The document analyzes the relationship between trade and climate change in Latin America, highlighting the region's relatively low greenhouse gas emissions intensity but high vulnerability to climate hazards. It examines domestic climate commitments in Nationally Determined Contributions (NDCs)—such as electromobility, sustainable agriculture, and circular economy initiatives—and their trade implications. The paper also assesses external pressures from trading partners, specifically the EU's Carbon Border Adjustment Mechanism (CBAM) and deforestation regulations. It concludes by recommending strengthened international cooperation, technology transfer, and the expansion of 'Aid for Trade' to support a just transition to a low-carbon economy.

• Latin America's contribution to global greenhouse gas (GHG) emissions is relatively small, accounting for 8.4% in 2019, with a lower emissions intensity compared to other regions.
• The energy sector became the primary driver of GHG emissions in 2019 at 45.2%, while agriculture and land-use change and forestry (LUCF) followed at 26.2% and 19.6% respectively.
• Many Latin American countries are integrating electromobility into their NDCs to reduce fossil fuel dependence and trade deficits, utilizing import duty and tax incentives to lower the cost of electric vehicles.
• Uruguay has successfully implemented a 'carbon footprint verified' standard for beef, allowing it to be the first South American country to export certified carbon-neutral meat to Switzerland.
• The European Union's proposed Carbon Border Adjustment Mechanism (CBAM) could impose significant costs on Latin American exports of steel and ferrous metals; for example, Argentina and Peru could face taxes of $6.3 and $11 per tonne respectively.
• EU regulations targeting deforestation and forest degradation may negatively impact exports of cattle, cocoa, coffee, palm oil, soya, and wood from countries such as Brazil, Paraguay, Argentina, Bolivia, and Colombia.
• The region is adopting circular economy approaches to reduce GHG emissions from material management, with Chile and Ecuador including explicit circular economy goals in their NDCs.
• Climate change significantly threatens food security in Latin America, with droughts and floods reducing average growth of yields and output for key crops like beans, maize, rice, soybeans, and wheat.
• Technology transfer for adaptation in agriculture is prioritized in the region, specifically focusing on drip irrigation, micro-sprinklers, soil nutrition, and climate-resilient crops.
• The Escazú Agreement, ratified by 13 countries, is the first regional treaty to include provisions for human rights defenders in environmental matters and is expected to incentivize responsible investment.

APA

Parada, L. P. (2023). Trade and Climate Change Mitigation and Adaptation in Latin America: A Framework for International Cooperation. Forum on Trade, Environment, & the SDGs. https://lyrical-cormorant.files.svdcdn.com/production/assets/images/Publications/TESS-Policy-Paper-Trade-and-Climate-Change-Mitigation-and-Adaptation-in-Latin-America.pdf?dm=1678308620

Chicago

Parada, Lorena Palomo. Trade and Climate Change Mitigation and Adaptation in Latin America: A Framework for International Cooperation. Forum on Trade, Environment, & the SDGs, 2023. https://lyrical-cormorant.files.svdcdn.com/production/assets/images/Publications/TESS-Policy-Paper-Trade-and-Climate-Change-Mitigation-and-Adaptation-in-Latin-America.pdf?dm=1678308620.

Wikipedia

{{cite report |last1=Parada |first1=Lorena Palomo |title=Trade and Climate Change Mitigation and Adaptation in Latin America: A Framework for International Cooperation |publisher=Forum on Trade, Environment, & the SDGs |date=February 2023 |url=https://lyrical-cormorant.files.svdcdn.com/production/assets/images/Publications/TESS-Policy-Paper-Trade-and-Climate-Change-Mitigation-and-Adaptation-in-Latin-America.pdf?dm=1678308620 |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{parada2023trade, author = {Parada, Lorena Palomo}, title = {{Trade and Climate Change Mitigation and Adaptation in Latin America: A Framework for International Cooperation}}, institution = {Forum on Trade, Environment, \& the SDGs}, year = {2023}, month = feb, url = {https://lyrical-cormorant.files.svdcdn.com/production/assets/images/Publications/TESS-Policy-Paper-Trade-and-Climate-Change-Mitigation-and-Adaptation-in-Latin-America.pdf?dm=1678308620}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }