Search Climate Insights Directory

The Brazilian sustainable debt market reached USD 33.3bn by H1 2023, with green bonds dominating at 45.2%. Within the agriculture sector, forestry is the most financed land-use category, followed by agriculture and bioenergy. The report highlights the role of sustainability-linked bonds (SLBs) for hard-to-abate sectors and recommends government guarantees and a national taxonomy to scale GSS+ financing.

The sustainable debt market in Latin America and the Caribbean (LAC) reached a cumulative total of USD 154.1 billion by the end of 2022. While the region represents only 4% of global sustainable debt, these instruments account for approximately 21% of the region's total debt volume from 2019 to 2022. The market is led by Chile, Mexico, and Brazil, with a strong presence of sovereign issuers and development banks. Key trends include the rise of sustainability-linked bonds (SLBs), the emergence of 'blue bonds' for ocean conservation, and the development of national taxonomies in Colombia and Mexico to standardize sustainable investments.

The VSS+ debt market in Latin America and the Caribbean (LAC) reached a cumulative total of $154.1 billion by the end of 2022. While the market experienced a volume contraction in 2022 due to global inflation and rising interest rates, it represents approximately 21% of the region's total debt volume from 2019 to 2022. Sustainable bonds are the largest segment (35%), followed by green (28%), social (19%), and sustainability-linked bonds (SLBs) (17%). Chile, Mexico, and Brazil are the primary markets, with Chile being the only country to have issued sovereign bonds across four of the five thematic labels. The report highlights the emergence of 'blue bonds' and nature-debt swaps in the Caribbean and Ecuador, and emphasizes the need for standardized taxonomies and improved reporting transparency to attract further international capital.

The LAC GSS+ bond market reached a cumulative total of USD154.1bn by the end of 2022. While 2022 saw a contraction in volumes, the market remains significant, accounting for an average of 21% of the region's debt. Sustainability bonds are the largest segment (35%), followed by green (28%), social (19%), and sustainability-linked bonds (17%). Chile, Mexico, and Brazil are the primary market drivers, with Chile leading in total volume at USD43.2bn. The report highlights the emergence of sovereign sustainability-linked bonds (SLBs), the potential of the blue economy, and the critical need for adaptation and resilience (A&R) financing. Key barriers include reporting inconsistencies and limited local capital market liquidity. The document recommends the adoption of national taxonomies, enhanced disclosure through platforms like the IDB's Green Bond Transparency Platform, and the use of innovative instruments to mobilize capital for the energy transition.

The report finds that climate finance for agrifood systems is strikingly low, representing only 4.3% of total global project-level climate finance in 2019/20, with an annual average of USD 28.5 billion. This is far below the estimated needs for climate transition, which are in the hundreds of billions of dollars annually. While agriculture and forestry receive the bulk of project-level funding, essential mitigation areas like food loss/waste and low-carbon diets receive less than 1% of such investments. Geographically, East Asia and the Pacific are the largest recipients of project-level finance, while the US and Canada dominate venture capital investments. The report suggests that repurposing existing public subsidies for agriculture and fisheries (USD 670 billion per year) and tapping into available private capital (USD 630 billion per year) could bridge the funding gap.

The 55th meeting of the IAI Executive Council focused on financial sustainability, leadership transitions, and regional climate initiatives. The Council recommended that the Conference of the Parties (CoP) approve the FY 2023-2024 Core Budget and establish a working group to increase voluntary contributions and diversify funding sources, noting that the core budget has not increased since 1992. The meeting also introduced Dr. Anna Stewart-Ibarra as the new Executive Director and Dr. Edwin Castellanos as the incoming Science Director. Additionally, the Council discussed a Regional Assessment of global change policy priorities and an initiative to enhance national climate assessment capacities in Latin America and the Caribbean.

The United Nations (via DCO LAC) and the Inter-American Institute for Global Change Research (IAD) signed a non-binding Declaration of Intent on 6 July 2023 to cooperate on sustainable development in Latin America and the Caribbean. The partnership focuses on the co-production of transdisciplinary science regarding global change, specifically the links between climate, environment, and health, to support the Sustainable Development Goals (SDGs). The signatories intend to collaborate on data analysis, innovation, digital transformation, strategic foresight, and behavioral science, with specific activities to be negotiated in future legally binding agreements.

The document argues that while clean energy transitions can drive development and gender equality, they risk reinforcing existing inequalities without intentional policy design. It identifies significant financing gaps, particularly for adaptation in low-income regions, and implementation barriers such as high connection fees for rural households. The authors recommend that the G20 facilitate lesson-sharing on policy innovations, promote gender-responsive programs that empower women as producers rather than just consumers, and establish a permanent platform for evidence generation on inclusive green transitions.

Climate finance for agrifood systems is critically low, representing only 4.3% of total project-level climate finance in 2019/20. The report highlights a massive investment gap, noting that current flows must increase at least sevenfold to meet conservative transition needs. While agriculture and forestry dominate project-level funding, essential mitigation areas like food loss and low-carbon diets are severely underfunded. The analysis reveals a heavy reliance on public funding (85%) and significant geographic disparities, with East Asia and the Pacific receiving the most finance, while South Asia and Latin America remain underserved relative to their emissions and vulnerability. The report advocates for repurposing harmful agricultural subsidies and leveraging private capital to scale climate-resilient and low-carbon food systems.

As of 30 April 2023, the GCF has approved 693 readiness grants totaling USD 513 million for 142 countries. Analysis of 239 completed grants shows significant progress in capacity-building, strategic framework development, and adaptation planning, with a strong focus on vulnerable regions. However, the portfolio has faced substantial delays, primarily due to the COVID-19 pandemic, leading to 336 grants receiving no-cost extensions. The GCF is implementing operational improvements, including the Readiness Results Management Framework (RRMF) and the Portfolio Performance Management System (PPMS), to enhance reporting and efficiency.

The Inter-American Institute for Global Change Research (IAI) has announced the adoption of Declaration 3524 by the Province of Neuquén, Argentina. This declaration, resulting from a Regional Training Workshop on Climate, Environment and Health for the Americas, establishes a multi-sectoral approach to climate governance. Key objectives include the creation of a regional community of practice, the identification of funding sources to improve health sector resilience, the development of health and environment indicators to monitor climate-driven morbidity and mortality, and the promotion of information system interoperability across Latin America and the Caribbean based on 'One Health' principles. The declaration also emphasizes the transformation of health systems to incorporate interculturality and traditional indigenous medicines.

The report provides guidance and analysis on leveraging National Adaptation Plan (NAP) processes to develop Adaptation Communications (AdComs). It details flexible submission options, analyzes trends among developing countries—particularly regarding gender integration and climate finance—and shares lessons from the NAP Global Network's support of 22 partner countries to streamline reporting and enhance the visibility of national adaptation priorities.

The report provides guidance for developing countries to align their National Adaptation Plans (NAPs) with Adaptation Communications (AdComs) under the Paris Agreement. It analyzes trends among the 56 countries that have submitted AdComs, noting that most developing nations use either standalone documents or their Nationally Determined Contributions (NDCs) as vehicles. The document outlines how countries at different stages of the NAP process—early stage, finalizing, or implementing—can use AdComs to consolidate information, advocate for support, or share lessons learned. It also highlights trends in gender integration, adaptation costing, and the use of case studies to demonstrate resilience.

The document outlines a framework for a Just Energy Transition (JET) in the Global South, specifically focusing on Latin America, the Caribbean (LAC), and Africa. It argues for a comprehensive transformation across social, economic, and environmental spheres, emphasizing the phase-out of all fossil fuels by 2040. For LAC, the brief highlights a strong dependence on extractive industries and the need for economic diversification. For Africa, it emphasizes the urgency of energy access, as 600 million people lack electricity, and warns against increasing debt through loans for transition. Both regions call for increased social participation, the protection of human rights, and the sustainable management of transition minerals. The brief concludes with specific demands for COP28, including new and additional funding from developed nations and the transfer of renewable energy technology as a public good.

The document outlines a framework for a Just Energy Transition (JET) in Latin America, the Caribbean (LAC), and Africa, emphasizing the need to move beyond fossil fuel dependence toward sustainable, community-led energy systems. It identifies shared priorities between the regions, such as social participation and economic diversification, while noting distinct challenges: LAC focuses more on financing mechanisms and existing renewable capacity, whereas Africa emphasizes social justice, energy access for 600 million people, and the legacies of colonialism. The brief calls for a full phase-out of fossil fuels by 2040, grant-based climate finance, and safeguards for the extraction of transition minerals.

The IAI Directorate reported progress in integrating gender and equity into scientific projects, enhancing the science-policy interface through the Science Diplomacy Center (SDC) and STeP fellowships, and implementing regional climate and health initiatives. Key achievements include the launch of a climate and health responder course for Latin America, the publication of a compendium on climate impacts in the LAC region, and the development of a drought information system for Southern South America. The Directorate also expanded its collaborative research actions with the Belmont Forum and established partnerships with organizations like the WMO and PAHO to improve climate risk assessments and early warning systems.

The IAI Executive Direction reports progress across science, capacity building, and strategic implementation between 2022 and 2023. Key achievements include the establishment of a Gender, Equity, Diversity, and Inclusion (GEDI) committee, the launch of the Science Diplomacy Center (SDC), and the expansion of the Science, Technology, and Policy (STeP) Fellowship program to 64 fellows from 13 countries. The IAI also advanced regional initiatives on the climate-health nexus, drought information systems in South America, and collaborative research through the Belmont Forum. Strategic partnerships were strengthened with organizations such as the World Meteorological Organization (WMO) and the Pan American Health Organization (PAHO) to enhance climate risk assessment and science-policy interfaces in the Americas.

This briefing provides an update on the Initiative for enhancing capacity for climate risk assessment and catalyzing partnerships to inform decisions in Latin America and the Caribbean (LACI). It details the initiative's progress from a scoping and partnership building phase involving 14 countries to a pilot co-design phase featuring four specific projects aimed at strengthening climate risk assessments and data interoperability in the region.

This briefing provides an update on the Initiative for Conducting a National Climate Assessment in Support of Adaptation and Mitigation (LACI), an effort led by the Inter-American Institute for Global Change Research (IAI) to strengthen climate risk assessments and decision-making in Latin America and the Caribbean.

The report provides a comprehensive overview of Colombia's sustainable debt market, which reached USD 2.4 billion by the end of 2022. It details the dominance of green bonds, the emergence of sustainability-linked bonds, and the role of the Colombian Green Taxonomy in guiding investments. The document also examines the country's climate vulnerability, the policy framework for adaptation and resilience, and specific opportunities across economic sectors such as energy, transport, and construction to support a low-carbon transition.