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The IAI Directorate has advanced several strategic mandates between June 2025 and January 2026, including the expansion of its Associate network with the WMO and AGU, and the operationalization of the Indigenous Peoples Advisory Committee (IPAC). Key efforts focused on science diplomacy in preparation for UNFCCC COP30, the launch of transdisciplinary research programs on climate-health and ocean science, and the development of the IAI Science Diplomacy Center. The Directorate also expanded its educational reach through virtual courses on remote sensing and health adaptation, while pursuing new member state adhesion, specifically with El Salvador.

The report argues that Colombia's electrical framework is outdated, designed for a hydro-thermal system and creating barriers to the integration of solar and wind energy. It proposes a structural shift toward a 'energy plus attributes' model, where systemic services like inertia and voltage control are explicitly valued. Key recommendations include reforming the reliability charge (Cargo por Confiabilidad), optimizing transmission capacity allocation to prevent 'hoarding', and transitioning to a more proactive planning role for the UPME. Technical evidence suggests Colombia could operate with over 95% renewable energy by 2038 if these regulatory and market bottlenecks are resolved.

The policy brief assesses the macroeconomic, financial, and labor risks associated with Colombia's energy transition, particularly for five vulnerable departments. It warns that a disordered transition could lead to the loss of 448,000 jobs by 2035 and increased country risk. To mitigate this, the authors propose an integrated policy package comprising macro-fiscal-financial measures to lower capital costs, territorially differentiated labor protections, and a productive-territorial strategy focusing on 'lever sectors' like electric energy, efficient construction, and agroecology to create sustainable local employment.

In 2025, electric vehicles (EVs) accounted for over a quarter of global new car sales, driven by a significant shift in emerging markets. While legacy auto markets in the US and Canada have seen a rollback of incentives, countries in Southeast Asia and Latin America are 'leapfrogging' advanced economies. Viet Nam and Singapore have reached EV sales shares exceeding 40%, surpassing the UK and EU. China continues to dominate as the largest market, with its exports increasingly targeting non-OECD markets such as Brazil, Mexico, the UAE, and Indonesia. The report highlights that EVs significantly reduce fossil fuel demand, with battery electric vehicles in Brazil delivering an estimated 90% reduction compared to internal combustion engine vehicles.

The paper contends that traditional industrial policy is overly focused on manufacturing and must be expanded to include services, which now account for roughly two-thirds of global GDP. It identifies five pillars for a services-led industrial policy: infrastructure, investment/FDI, skills and human capital, regulatory quality, and connectivity. The author highlights that services offer developing economies advantages in terms of lower capital intensity, smaller minimum scale, and environmental sustainability. Furthermore, the document notes that the General Agreement on Trade in Services (GATS) provides governments with more policy space for experimentation than the rules governing manufacturing trade.

The paper examines the 'care crisis' in Africa, where unpaid care work—primarily performed by women—is economically invisible and underfunded due to debt burdens and austerity. It proposes a shift toward 'feminist fiscal justice' by adopting progressive taxation, wealth taxes, and integrated care systems, drawing on successful models from Uruguay, Colombia, and Costa Rica.

The document argues that wealth taxation is an appropriate tool for redistribution in South Africa due to extreme inequality, where the richest 0.01% owned 15% of wealth in 2017. It examines three primary instruments: Financial Transaction Taxes (FTTs), dividend taxes, and net wealth taxes. International evidence from France shows that increasing dividend taxes from 15.5% to 46% led to a 15% increase in investment. Net wealth taxes in countries like Argentina, Spain, Norway, Switzerland, and Colombia have raised between 0.2% and 1.5% of GDP. The brief highlights administrative challenges for the South African Revenue Service (SARS) but notes the existence of a High Wealth Individual Unit as evidence of feasibility. It recommends a combination of moderate net wealth taxes, increased dividend taxes, and the introduction of an FTT, supported by tighter capital controls and international cooperation via the UN Framework Convention on International Taxation and Cooperation.

The TD Game is a storytelling-based pedagogical tool used in workshops to help participants understand transdisciplinary (TD) practices, identify challenges and opportunities, and develop strategies for new projects. It is adaptable for both beginners and experienced TD professionals and was developed through collaborative inputs from the STeP Fellows Conference, the SRI Congress, and Belmont Forum researchers.

The report catalogs 30 operational financial mechanisms for tropical forests, totaling US$ 25.9 billion in planned, issued, and disbursed funds. It highlights a significant funding gap compared to the US$ 66.8 billion annually needed by 2030, noting that 31% of identified funds have not yet been disbursed. The analysis emphasizes that while conservation currently dominates funding, restoration offers higher potential for private and blended finance, and jurisdictional REDD+ remains the most significant instrument, representing over US$ 15.3 billion.

The document argues that Colombia's previous renewable energy auctions, which focused exclusively on price, led to social conflicts and project cancellations, particularly in La Guajira. It proposes a new framework incorporating non-price criteria—such as local employment, community benefit-sharing, and gender perspectives—into qualification and award processes. Additionally, it suggests creating a dedicated support agency and a 'joining process' (proceso de adhesión) to enable small-scale community energy projects (up to 5 MW) to access the market without competing directly with large developers.

The IAI Executive Directorate report details progress on science diplomacy, climate-health research, and ocean science between June and October 2025. Key achievements include the establishment of the IAI Science Diplomacy Center, new partnerships with the World Meteorological Organization (WMO) and American Geophysical Union (AGU), and the development of transdisciplinary training programs on tropical forests and ocean systems. The report also highlights efforts to integrate indigenous peoples through the IPAC and preparations for COP30 in Brazil.

The document details the methodology used to evaluate investment risks and attributes for the livestock sector in Latin America and the Caribbean, categorizing risks into governance, financial, physical climate, market, infrastructure, and nature. It establishes a framework for matching these risks with the preferences of public and private investors and models three capital scenarios: business-as-usual (BAU), improved financial strategies (IFS), and improved financial and political strategies (IFPS). The analysis distinguishes between small-scale farms (2-10 hectares) and large-scale commercial operations, noting that small-scale systems are more dependent on public funding. Geographically, it segments the region into Brazil, Argentina, Mexico, and the 'rest of LAC', highlighting Brazil's role as the region's primary beef producer and the significant underreporting of private climate finance in the sector.

The document outlines a comprehensive methodology for evaluating investment risks and attributes in the livestock sector across Latin America and the Caribbean, specifically distinguishing between small-scale and large-scale commercial farms. It establishes a scoring system across six risk categories—governance, financing, physical climate, market, infrastructure, and nature—and compares these against the risk tolerances of public and private investors. The annexes also model three financial scenarios: Business-as-Usual (BAU), Enhanced Financial Strategies (IFS), and Enhanced Financial and Policy Strategies (IFPS), predicting how targeted interventions can shift capital composition from predominantly public to increased private investment. Geographic analysis highlights Brazil's relative stability and market dominance, while noting higher risks in Argentina and Mexico.

The report identifies a massive funding gap for sustainable livestock in Latin America and the Caribbean, where the sector is responsible for approximately 28% of regional emissions but receives minimal climate investment. It analyzes investment risks—including governance instability, physical climate threats like El Niño, and macroeconomic volatility—and evaluates the suitability of various public and private investors. The document proposes three scenarios: Business-as-Usual, Improved Finance Strategies (IFS), and Improved Finance and Policy Strategies (IFPS), arguing that a combination of blended finance, risk-reduction tools, and institutional reforms is necessary to transition from a heavy reliance on public funding to a diversified capital base. Specific recommendations include implementing first-loss capital, long-term loans, and natural capital accounting to unlock investment in practices such as silvopasture and sustainable feed production.

The report identifies a severe underfunding of sustainable livestock systems in Latin America and the Caribbean (LAC), where livestock accounts for approximately 28% of regional greenhouse gas emissions. It highlights a significant financing gap, estimating that annual flows need to increase up to 255 times to enable a transition. The analysis reveals that public investors are currently the most suitable for the sector due to higher risk tolerance, while private investment is hindered by governance risks, macroeconomic instability, and a mismatch between project scales and investor preferences. The document proposes three scenarios—Business-as-Usual, Improved Finance Strategies (IFS), and Improved Finance and Policy Strategies (IFPS)—to demonstrate how blended finance, risk-reduction tools, and regulatory reforms can attract private capital, particularly for large-scale farms in Brazil and Mexico.

The report details a workshop series organized by the Inter-American Institute for Global Change Research (IAI), the Alliance for Just Deliberation on Solar Geoengineering (DSG), and The Degrees Initiative. The program focused on solar radiation modification (SRM) as a case study for emerging climate intervention techniques. Through expert presentations and a multilateral negotiation simulation in Bogotá, Colombia, the initiative aimed to bridge the gap between science and policy for officials from Latin America and the Caribbean. Key outcomes include a consensus on the need for regional research to ensure equitable participation in global forums, concerns over 'moral hazard' regarding climate mitigation, and the importance of including Indigenous Peoples and local communities in research governance.

The report examines eight innovative financial instruments—including the Adaptation Benefit Mechanism, biodiversity credits, carbon taxes, carbon trading, credit guarantees, debt-for-nature/climate resilience swaps, pooled investment funds, and sovereign green/sustainability-linked bonds—to bridge the climate finance gap in developing countries. It identifies common barriers such as limited institutional capacity, lack of robust project pipelines, and underdeveloped local capital markets. The document emphasizes that while these instruments can signal a government's commitment to climate action, their success depends on a supportive enabling environment characterized by effective leadership, clear taxonomies, and robust climate data. For least developed countries (LDCs), the report suggests a phased approach, first strengthening basic financial and legal prerequisites before focusing on 'climate investability'. It concludes with specific recommendations for donors and development partners to provide technical assistance, anchor investments, and pilot projects to scale up private sector mobilization.

Chile faces significant renewable energy curtailment due to limited transmission and storage capacity, with 5,642 GWh of solar and wind energy curtailed in 2024. The report recommends a National Curtailment Reduction Plan, the mass installation of Dynamic Line Rating (DLR) systems, minimum storage requirements for new projects in congested areas, and the creation of a formal demand response market. It also suggests strengthening electricity exchange markets with Argentina and Peru to improve system flexibility.

Chile faces significant energy curtailments due to transmission bottlenecks and a lack of system flexibility, with 2024 curtailments reaching 19% of solar and wind generation. The document argues that while large infrastructure projects like the Kimal-Lo Aguirre line are planned for 2029, immediate action is needed through a 'Clean Flexibility Kit' including battery storage, Dynamic Line Rating (DLR), and demand response markets. It compares Chile's situation with other high-renewable systems like China, Ireland, and California to provide a roadmap of short-, medium-, and long-term recommendations to improve grid efficiency and reduce economic losses for investors.

The policy brief examines the role of Digital Public Infrastructure (DPI)—comprising digital identity, payments, and data-sharing systems—in addressing the shadow economy in Africa, which is estimated by the IMF to represent roughly 35% of GDP (approximately $1–1.2 trillion). It distinguishes between the general informal economy and the 'shadow economy,' focusing on high-value transactions deliberately structured to evade taxes. The document highlights that cash transactions enable this opacity, while digitalisation can increase visibility and audit trails. Drawing on lessons from South Korea's Tax Incentive for Electronically Traceable Payments (TIETP) and India's 'India Stack' and demonetisation, the brief suggests that incentivising consumers to use digital payments is more effective than solely targeting sellers. It notes that while Uganda has used DPI to register over 350,000 informal participants, revenue gains were limited by weak enforcement and data-sharing obstacles. The brief recommends that South Africa, during its 2025 G20 presidency, advocate for an 'Africa Stack' of open APIs and modular technology to spur private sector innovation and improve tax administration across the continent.