Green finance in the private sector was predominantly linked to corporate responsibility. It’s now the time to integrate climate action into the core business of financial institutions.
Investing in preventative adaptation solutions can be more effective and less costly for the private sector than a late response. The opportunities available to adapt to climate change remain largely unmet.
The abundance of renewable resources places the regional industry well below many of its rivals in terms of greenhouse gas emissions per unit of electricity generated — a unique advantage that can help the region move rapidly towards the net-zero emission target.
High-speed 5G Internet connections will help more remote work and information access, reducing emissions from cars and planes, and facilitate self-driving vehicles, leading to fewer accidents and shorter commutes, as well as the widespread adoption of smart buildings with less energy use.
Addressing climate change in the region calls for financial institutions to step up their role in channeling capital towards green investments, including the green transition. It also calls for boosting impact measurement and reporting capacity to avoid green washing.
In addition to offering various tax, customs, regulatory and other incentives for investors, free zones and industrial parks in Latin America and the Caribbean are increasingly adding another benefit to the mix: a reduced carbon footprint through self-supplied renewable energy for production.