Latin America and the Caribbean (LAC) has significant climate investment opportunities and some relatively mature markets, but climate finance remains far below needs and highly uneven across countries, sectors, and climate objectives. Brazil, Mexico, and several larger South American economies have deeper capital markets and larger project pipelines than other countries in the region, along with significant opportunities in renewable energy, industry, and land use. By contrast, other Caribbean, Central and South American countries face smaller markets, high exposure to climate shocks, greater dependence on imported fuels and more constrained fiscal space. The region also has a distinct emissions profile: AFOLU is particularly important in major South American countries, while energy and transport are more prominent in many smaller Caribbean and Central American economies. These differences make granular,subregion- and country-specific analysis essential.
This report titled “Landscape of Climate Finance in Latin America and the Caribbean” published by Climate Policy Initiative provides a comprehensive stocktake of climate finance, public and private; domestic and international—flowing in and to the region from 2020 to 2024. It tracks investments across mitigation, adaptation, and dual-benefit activities, mapping flows from sources and financial instruments through to the sectors being financed on the ground. In doing so, it spotlights trends and opportunities, while teasing out key gaps and challenges in the LAC region. Disaggregated subregional analysis adds nuance across the subregions—the Caribbean, Central America and South America—with Brazil and Mexico separated as outliers because of their outsized climate finance flows.
Access the full report here