Latin America and Caribbean Finance Ministers Adopt Regional Vision for Sustainable Finance
Key Impact Points
- Regional Vision for Sustainable Finance: Finance ministries from Latin America and the Caribbean adopted a new vision to drive sustainable finance, aiming to support climate commitments and enhance the region’s resilience.
- $2.4 Trillion Needed Annually: Acknowledging that the current $100 billion per year climate goal is insufficient, the vision calls for $2.4 trillion per year by 2030 to meet global climate needs.
- Regional Collaboration for Climate Action: The agreement focuses on improving access to climate finance, monitoring funds, and overhauling the financial architecture to promote fair and just transitions.
Overview
In a significant step towards supporting climate action and sustainable finance, the members of the Regional Climate Change Platform of Economy and Finance Ministries of Latin America and the Caribbean have adopted a new Regional Vision for Sustainable Finance. This collective vision aims to enhance investments in climate-resilient projects and position countries better to meet their climate commitments.
The vision was developed during the Third High-Level Dialogue hosted by Belize on August 30-31, and will be presented at various international forums on climate change, sustainability, and biodiversity protection.
The Five Pillars of the Regional Vision
The Regional Vision emphasizes five main pillars:
- Increased Climate Financing Goal: The vision calls for a new global goal under the Paris Agreement. The current target of mobilizing $100 billion annually for developing nations is deemed insufficient, with experts suggesting a need for $2.4 trillion per year by 2030.
- Access to Climate and Biodiversity Funds: Countries in the region aim to improve their capacity to access funding from various climate and biodiversity funds.
- Monitoring of Funds: Strengthening the mechanisms to monitor how climate funds are used is another key focus.
- National Climate Commitments: Countries will bolster their national efforts to meet climate targets.
- Overhauling International Financial Architecture: The regional stance includes support for reforming the financial system to ensure fairer and more just transitions for all nations.
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Regional Leadership and New Work Plan
Seventeen countries participated in the high-level dialogue, which also included the Inter-American Development Bank (IDB). The platform unveiled its new 2024–2025 work plan, and Colombia’s Ministry of Finance and Public Credit took over the presidency of the platform.
Jordan Schwartz, Executive Vice President of the IDB, highlighted the importance of the agreement:
“This agreement marks a turning point in regional collaboration to embed climate action and sustainability in fiscal, economic, and financial policies. We are committed to continuing to work with the platform’s member countries to achieve just and fiscally sustainable transitions that build more resilient economies.”
Voices from Regional Leaders
Ricardo Bonilla, Minister of Finance and Public Credit of Colombia, underscored the urgency of regional action: “For Colombia, it is an honor to take on the pro tempore presidency of the Regional Platform. We believe it is imperative to accelerate actions to fulfill climate and environmental commitments through a fair energy, economic, and social transition.”
Related Article: ESMA’s Green Scheme for Robust Sustainable Finance
Carola Moreno, Coordinator of International Affairs and Finance for Chile, spoke on the importance of financial policies addressing climate change: “As those responsible for the country’s economic, fiscal, and financial policy, we must design policies that address the challenges posed by climate change and biodiversity loss, given their effects on the economy and their social consequences.”
John Briceño, Prime Minister of Belize, emphasized the importance of regional collaboration:
“It is an honor for Belize to host this significant event here in San Pedro, whose natural shores vividly underscore the urgent need for collective action against climate change. The work done on a regional level has positively shaped national efforts to embed climate action into our economic and fiscal policies.”
Conclusion
The adoption of the Regional Vision for Sustainable Finance represents a crucial step for Latin America and the Caribbean as the region strengthens its efforts to mobilize climate finance. By collaborating on a regional level and pushing for increased global climate funding, the region is positioning itself to meet both environmental and economic challenges head-on.
