The landmark paris climate agreement opens the door to transformative changes that will advance the fight against climate change. For Latin America, this agreement was essential. The region is one of the most vulnerable to climate change and the agreement lays the foundation for the creation of more resilient communities and economies. The Paris Agreement will also help mobilize new investments in key sectors such as clean energy, which will bring significant local benefits while reducing climate change emissions. During the climate summit, several Latin American countries played a key role in supporting the negotiations and showed that the region was part of the climate solution. This international leadership and commitment to combating climate change must now translate into concrete action at the national level. Outside of the negotiations, Latin American countries and cities are already a source of climate solutions. Over the years, we have seen many examples of proactive solutions in the region, such as Bogota`s rapid bus system, Mexico`s green mortgages and Costa Rica`s payments for environmental services. These and other examples are solutions that have been tested and can be replicated and modulated in other parts of the continent and outside the region. The Paris Agreement is a green light for climate solutions like this – solutions that not only contribute to the fight against greenhouse gases, but also provide a practical response to the region`s sustainable development needs. In the negotiations leading up to the climate agreement, a number of Latin American countries helped advance the discussions by building bridges between developing and industrialized countries and showing their own willingness to act within the framework of climate. Their efforts have made it clear that we will only succeed through partnerships in the fight against climate change. Power plants operating in the region are on average 18 years old and can therefore still be used for 15 or 20 years.
According to our estimates, they will emit about 7 GtCO2 during their typical lifespan. In comparison, the Intergovernmental Panel on Climate Change (IPCC) is weaker at keeping global temperature rise below 2 degrees Celsius and as close as possible to 1.5 degrees Celsius. In order to meet the temperature target set by the Paris Agreement, emissions from the LAC electricity sector should not exceed about 6 GtCO2. Compliance with the Paris Agreement may require the region to “fail” or close about 15% of installed operating capacity before reaching its typical lifespan. The fight against climate change is also promoted in bilateral trade agreements, such as Colombia.B with Peru and Peru, as well as association agreements with Central America. These are aimed at facilitating foreign trade and investment in environmental technologies such as renewable energy and energy efficiency. The Paris Agreement will also facilitate the transition to low-carbon economies by mobilizing new investments in key sectors such as energy. But in addition to public funding, the Paris summit showed that many companies, investors, financial institutions and other actors are also ready to take action to combat climate change. In this sense, Latin America has much to gain from its rich renewable resources.