The Latin America and the Caribbean (LAC) region is one of the most biodiverse areas in the world, encompassing a wide range of ecosystems and natural resources. The region is also highly vulnerable to the impacts of climate change, including extreme weather events, rising sea levels and changing precipitation patterns. These climate-related challenges pose significant risks to the region's socio-economic development, natural capital, and the well-being of its population.

This report is one of the main outputs of the OECD project on Enhancing Green Transition in Latin America and the Caribbean: From Commitments to Action. It offers governments in the Latin America and the Caribbean (LAC) region recommendations on key policy priorities to advance towards climate resilience and neutrality. The report is not a comprehensive analysis of all existing climate action and related opportunities and challenges across the LAC region, but rather a selection of those that emerged during a series of Regional Policy Dialogues, Expert Workshops and exchanges organised between OECD and LAC country experts over the period of 2022 and 2023. Furthermore, the findings in the report also leverage knowledge-based analysis by OECD and other international organisations on the various topics.

As elsewhere, countries in Latin America and the Caribbean need to take decisive and urgent action on climate change. While many countries in the region have committed to achieving climate neutrality and building resilience, further efforts are needed. This involves, for instance, better management of increasing risks from climate change and climate variability, but also mitigating greenhouse gas (GHG) emissions and promoting innovation and green investments. Achieving these goals requires comprehensive long-term strategic and financial planning, a more integrated and inclusive approach, which better aligns adaptation and mitigation policies and measures across different sectors, albeit at a differentiated level.

Latin America and the Caribbean (LAC) countries have committed to achieving climate neutrality and building resilience. To overcome challenges and grasp the opportunities, an Action Plan towards climate resilience and neutrality is proposed. Through a set of 40 key policy recommendations developed through a series of Regional Policy Dialogues and Workshops, LAC countries can prioritise the most effective sectoral and horizontal actions, define their sequence and move towards implementation.

The Latin America and Caribbean (LAC) region is characterised by its high vulnerability towards extreme weather events and climate disasters, as well as its richness in biodiversity and abundant natural resources. LAC countries have developed and are implementing National Adaptation Plans (NAPs). Yet more needs to be done to manage increasing risks from climate change and climate variability. Based on the discussions in a series of Regional Policy Dialogues and Workshops on these issues among LAC and OECD experts in the context of the OECD LAC Regional Programme (LACRP), this chapter maps challenges to addressing climate change adaptation in the LAC region and presents options on policy initiatives that could be undertaken to this end.

In the past two decades, the Latin America and the Caribbean (LAC) region has seen a significant rise in emissions, despite contributing to less than 10% of global Green House Gas (GHG) emissions. National pledges, while crucial, fall short of addressing this issue comprehensively. To effectively combat this trend, LAC governments must adopt an integrated approach, prioritising energy efficiency, renewable energy adoption, emissions reduction in transport and agriculture, and forest preservation. The region's diversity results in varying climate impacts and challenges. Based on the discussions in a series of Regional Policy Dialogues and Workshops on these issues among LAC and OECD experts in the context of the OECD LAC Regional Programme (LACRP), this Chapter describes regional challenges, identifies mitigation priorities, and presents policy options for tailored sector‑specific climate mitigation strategies.

Addressing climate change requires comprehensive, cross-cutting policies to ensure that government efforts are not isolated within a single sector. Climate change is a complex issue that affects multiple aspects of society, including the economy, education, health, and social equity. Governments in Latin America and the Caribbean (LAC) need to develop integrated strategies and a comprehensive and horizontal approach to address and enable synergies on issues such as climate governance, finance, and environmental information. Based on the discussions in a series of Regional Policy Dialogues and Workshops on these issues, this Chapter discusses critical policy priorities that can impact multiple sectors, providing a foundation for addressing immediate and long-term challenges ensuring that climate neutrality and resilience are incorporated in the region's development agenda.