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Latin American Economic Outlook 2022

Towards a Green and Just Transition

image of Latin American Economic Outlook 2022

What challenges and opportunities does the green transition entail for Latin America and the Caribbean? This 15th edition of the Latin American Economic Outlook explores options for the region to recast its production models, transform its energy matrix and create better jobs in the process. It argues that, for this transition to be just, stronger social-protection systems and open dialogue must help build new, sustainable social contracts. In support of this ambitious agenda, the report presents an array of financing options, including green finance, and advocates for renewed international partnerships.

English Also available in: Spanish

International partnerships for a green and just transition

Regional and international co-operation is necessary to ensure the successful implementation of climate change mitigation and adaptation policies. Many countries in LAC are natural resource-intensive exporters with rich biodiversity, placing them as important actors in climate negotiations. However, they also face an export structure biased towards primary sectors, a condition that makes them vulnerable to new international environmental standards and regulations. This chapter argues that, to transition to a sustainable model of development, LAC governments need a strong convening power and to enhance a unified voice in multilateral environmental agendas. This will help to better illustrate the region’s particularities and improve alignment of national policies and internationally established environmental goals. In addition, the chapter looks at how governments will also have to face the green economy’s impact on trade. Policies will need to take into account the additional costs imposed on exports in the medium term, along with the effects of international environmental standards and regulations. Finally the chapter shows how regional co-ordination and further co-operation among LAC countries, and sub-regional grouping will be the way forward for advancing on renewable energies and green transition policies in the LAC region.

English Also available in: Spanish

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