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The paper contends that traditional industrial policy is outdated because it focuses almost exclusively on manufacturing, despite services accounting for approximately two-thirds of global GDP. It proposes a 'service-led' industrial policy based on five pillars: infrastructure, investment/FDI, human capital, regulatory quality, and connectivity. The author highlights that services offer developing economies a more inclusive and sustainable path to growth due to lower capital intensity and smaller minimum scales for global competitiveness. Furthermore, the document notes that the General Agreement on Trade in Services (GATS) provides governments with more policy space for experimentation compared to the stricter rules governing goods.

The author argues that traditional industrial policy is overly focused on manufacturing and must be redesigned for a services-led economy. Services now represent two-thirds of global GDP and act as critical inputs for all sectors. The paper proposes five pillars for a services-oriented policy: infrastructure, foreign direct investment, human capital, regulatory quality, and digital/physical connectivity. It highlights that developing economies can leverage services due to lower capital intensity, smaller scale requirements, and lower carbon footprints. Furthermore, the author notes that the General Agreement on Trade in Services (GATS) provides governments with more policy space for experimentation than the rules governing goods.

The author proposes that China can transition from purely economic expansion to supporting climate action in Latin America by implementing a Joint Credit Mechanism for renewables, engaging in debt-for-climate swaps (specifically with Ecuador), and negotiating free trade agreements that prioritize environmental goods and services.

The document analyzes the implementation of the 2030 Agenda in 13 Latin American countries, focusing on mainstreaming SDGs into national policies, operationalization, and social ownership. While most countries found aligning national priorities with SDGs relatively simple, they face significant hurdles in cross-sectoral coordination, long-term budgetary guarantees, and the inclusion of subnational governments and civil society. The report highlights diverse national strategies, ranging from Colombia's integration of SDGs into its national development plan to Mexico's alignment of over 400 budget indicators with SDG targets.

Uruguay's Long-Term Climate Strategy (ECLP) establishes a roadmap toward CO2 neutrality by 2050 and stability in CH4 and N2O emissions. The strategy prioritizes climate adaptation and resilience due to the country's high vulnerability, particularly in its agro-industrial and coastal sectors. Key mitigation pathways include a second energy transformation focusing on electromobility and green hydrogen, the gradual substitution of clinker in cement production, and increasing carbon sequestration through native and commercial forestry. The document also emphasizes a 'Just Transition' to manage employment shifts in the energy and waste sectors, while aligning national efforts with the Paris Agreement's Global Goal on Adaptation.

The document analyzes how the COVID-19 pandemic exacerbated structural inequalities in Latin America, specifically affecting women's labor participation and health, the vulnerability of indigenous populations regarding food security and healthcare, and the slow integration of green jobs into economic recovery plans. It provides detailed case studies for Mexico, Chile, and Colombia, highlighting gaps in public spending and the need for intersectional policies, improved data collection, and a transition toward a sustainable, low-carbon economy that ensures decent work and social justice.

The document explains the mechanics of carbon credits, distinguishing between regulated markets under the Paris Agreement and voluntary markets. It highlights that while Latin America and the Caribbean accounted for 22% of global carbon credit sales in 2021, the region lacks the robust regulation needed to prevent environmental and social risks. The guide warns against over-reliance on the forestry sector, the risk of 'greenwashing' in voluntary markets, and the potential for 'double counting' of emission reductions. It recommends establishing transparent national registries, ensuring fair benefit-sharing with local communities, and prioritizing structural decarbonization over simple offsetting.

The paper identifies key factors and recommendations for achieving 'transformational' change in low-carbon energy, defined by large magnitude impact, non-linear growth, and long-term sustainability. Through the analysis of 20 case studies, the authors categorize experiences into transformational, potentially transformational, and missed opportunities, highlighting the roles of regulatory frameworks, financial incentives, and national ownership.

The document details mechanisms for raising public finance for climate action, focusing on the roles of international funding, debt instruments, and national vehicles. It examines the benefits and challenges of international public finance, the growth of the climate bond market, the utility of debt-for-climate swaps in reducing debt burdens, and the operational structure of national climate funds. The guide provides specific examples of these instruments in practice across various developing and middle-income countries.

The document argues that open data—datasets freely available for use and redistribution—is essential for a coordinated, whole-of-society response to climate change. It identifies five primary benefits of open data: improved data coordination and quality, more informed decision-making, the creation of novel partnerships, the democratization of climate modeling, and enhanced monitoring of policies and programs. The paper draws on a literature review, expert consultations, and pilot projects in Chile and Uruguay (conducted between August 2019 and August 2020) to provide a methodology for stakeholders to assess and improve the openness of climate-relevant datasets.

The case study argues that forests influence climate stability through biophysical processes—albedo, evapotranspiration, surface roughness, and aerosols—beyond the carbon cycle. In Chile, the loss of over 40% of forest cover, particularly the matorral in the central region, has likely contributed to local temperature increases and exacerbated the 'Mega Drought' (2010-2018). The authors propose enhancing Chile's Nationally Determined Contribution (NDC), Long-Term Climate Strategy, and REDD+ frameworks by incorporating non-carbon cooling effects as performance indicators and targets. They also suggest expanding the ARClim risk assessment platform to include deforestation-induced warming to better prioritize adaptation measures in agriculture and public health.

The document argues that forests influence climate not only through carbon sequestration but also through biophysical processes—albedo, evapotranspiration, surface roughness, and aerosols—which affect temperature and precipitation. In Chile, the conversion of native vegetation to crops and pastures has been linked to local surface temperature increases of up to 4°C. The authors suggest that Chile can enhance its Nationally Determined Contribution (NDC), Long-Term Climate Strategy, and REDD+ strategies by incorporating these non-carbon effects as performance indicators and adaptation goals. Specifically, they recommend prioritizing native species over exotic plantations to maximize cooling effects and utilizing the ARClim digital platform to identify areas at risk of non-carbon warming.

The report examines the non-carbon biophysical effects of forests—albedo, evapotranspiration, surface roughness, and aerosols—and their impact on local and global temperatures and precipitation. Using Chile as a case study, it highlights how deforestation of native vegetation, such as the matorral, has contributed to local surface temperature increases. The document proposes specific policy enhancements for Chile, including adjusting its Nationally Determined Contribution (NDC) to favor native species over exotic plantations, expanding the ARClim risk assessment platform, and incorporating biophysical indicators into the National Strategy for Climate Change and Plant Resources (ENCCRV). It suggests that Chile's approach can serve as a model for other UNFCCC parties to recognize deforestation as a climate hazard beyond carbon emissions.

The report contends that carbon markets focus exclusively on greenhouse gas emissions, failing to account for biophysical processes—such as evapotranspiration and albedo—that make tropical forests critical for cooling the planet. This omission leads to overly conservative credit valuations for tropical nations and indigenous communities, while potentially overvaluing credits from higher latitudes. The authors suggest integrating these biophysical benefits as premium attributes or CO2 equivalents to ensure a just transition and better incentivize large-scale forest conservation.

The research paper contends that carbon markets focus exclusively on greenhouse gas (GHG) emissions and removals, failing to account for the biophysical processes of tropical forests—such as evapotranspiration and albedo—that contribute significantly to global cooling. This omission leads to overly conservative crediting for tropical regions and an underestimation of their mitigation potential, which the authors estimate could provide an additional 1.4 to 1.8 gigatons of CO2-equivalent annual mitigation. The paper also highlights the concept of 'positive biophysical leakage,' where protecting forests enhances the resilience of surrounding landscapes against wildfire and drought. To address these inequities, the authors recommend that norm-setting bodies balance risk assessments, allow for premium pricing based on non-carbon attributes, and work toward quantifying biophysical effects as CO2 equivalents.

The report contends that carbon markets focus exclusively on greenhouse gas emissions, ignoring four key biophysical processes—albedo, evapotranspiration, surface roughness, and aerosols—that allow tropical forests to cool the planet. This omission leads to a significant underestimation of the climate mitigation potential of tropical forests, which the authors claim contribute 50% more to global warming prevention than carbon alone. The document highlights that conservative risk-management standards (such as additionality and leakage tests) further penalize tropical forest credits, particularly in High Forest Low Deforestation (HFLD) countries. It proposes that these non-carbon benefits be treated as additional attributes for pricing or eventually quantified as CO2 equivalents to ensure a more equitable transition for indigenous peoples and local communities.

The report contends that carbon markets focus exclusively on greenhouse gas (GHG) emissions, failing to account for four key biophysical processes—albedo, evapotranspiration, surface roughness, and aerosols—that allow tropical forests to cool the planet. This omission leads to an underestimation of the mitigation potential of tropical forests, which could provide an additional 1.4 to 1.8 gigatonnes of CO2-equivalent mitigation per year. The authors argue that this creates an inequitable system that penalizes tropical nations and indigenous communities while overvaluing forests in higher latitudes. To correct this, the document recommends incorporating biophysical effects as additional credit attributes, recognizing 'positive biophysical leakage' that enhances landscape resilience, and developing long-term methods to quantify these benefits as CO2 equivalents.

The document outlines how forests influence climate stability through four non-carbon biophysical processes: albedo, evapotranspiration, surface roughness, and aerosols. It argues that ignoring these effects leads to an undervaluation of tropical forests, as tropical deforestation contributes 50 percent more to global warming than carbon-only metrics suggest. The authors propose six specific mechanisms for UNFCCC Parties to integrate these effects into official processes, including GHG inventories, Nationally Determined Contributions (NDCs), REDD+ reporting, National Adaptation Plans (NAPs), the Global Stocktake, and the IPCC's 7th Assessment Report cycle.

The policy brief highlights that forests influence the climate through four key non-carbon biophysical processes: albedo, evapotranspiration, surface roughness, and aerosols. It argues that focusing solely on carbon underestimates the cooling value of tropical forests and ignores local temperature spikes caused by deforestation. The authors propose six specific ways for UNFCCC Parties to integrate these effects into national greenhouse gas inventories, Nationally Determined Contributions (NDCs), REDD+ reporting, adaptation planning, the Global Stocktake, and the IPCC's Seventh Assessment Report (AR7).

The briefing explains how forests influence climate through non-carbon biophysical processes—albedo, evapotranspiration, surface roughness, and aerosols—and proposes six specific mechanisms for the UNFCCC to integrate these effects into national reporting, NDCs, REDD+, adaptation planning, the Global Stocktake, and IPCC assessments.