The disproportionate impacts of the pandemic and extreme weather events on the Latin America and Caribbean (LAC) region highlight the urgent need for a just and equitable transition to net zero in LAC. The region has a unique opportunity to step up at the upcoming COP26 by incorporating just transition priorities into two foundational energy initiatives. The Renewable Energy for Latin America and the Caribbean (RELAC) Initiative along with the implementation of the Observatory of Energy Management Systems in Latin America and the Caribbean, supported by sources of climate finance, have the potential to help deliver on the region’s energy and climate goals while also generating the new economic and employment opportunities needed for a new green economy that works for all.
Concessional finance could prove critical for just transitions in developing countries. Multilateral climate funds, with their range of tried and tested financial tools, could help drive a new wave of investments that put people at the center of a net-zero economy.