Resource information
Financing projects and programs to
mitigate impacts of, and adapt to, the climate change is a
matter of necessity not choice. This green expenditure
policy note looks at factors facilitating the access to
international financial instruments for Latin America and
the Caribbean (LAC) countries that support mitigation of and
adaptation to climate change. This policy note explores two
questions: (i) does the quality of government institutions
matter for enabling action aimed at mitigation or adaptation
to the climate change?; and (ii) what financial instruments
are available to governments in addition to own resources to
address climate change challenges? This policy note aims to
present them with advice on how to achieve greater access to
international financing or co-financing of projects
supporting renewable and alternative energy generation for
transport, agriculture, housing, preservation of unique
ecosystems, and other projects supporting sustainable
development. This policy note describes the climate
challenges facing the LAC region and then discusses the
various climate financing flows. It discusses the factors
affecting LAC countries' access to climate financing,
and how countries can apply to several of the principal
global and regional climate funds. The objective is to
disseminate knowledge that will help governments of all LAC
countries, and particularly finance ministries, understand
and access new climate funds and financing mechanisms. The
policy note consists of three parts: part one reviews the
global landscape of the climate change financing for
mitigation and adaptation and emerging trends, identifies
various financial instruments, and presents an overview of
the LAC's share of available finances from several
public financing sources, both bilateral and multilateral.
Part two reviews two case studies for Bolivia and El
Salvador that demonstrate how each of these countries
addresses environmental challenges through its policies,
institutional systems and involvement of the civil society.
Part three includes technical annexes, which represent a
compilation of technical information presenting main climate
change financial instruments. A list of global and
specialized climate funds of possible interest to LAC
countries appear in annex one. A complementary list of
climate finance instruments appears in annex two, in which
climate funds as well as financial tools are named,
described, and categorized according to their primary
purpose. A more detailed description of several of the
largest climate funds including when such funds were
founded, their purpose, and eligibility requirements are
presented in annex three. Annex four provides a step-by-step
description of how to apply to the largest climate funds.
Annex five lists the LAC projects that have been supported
by Global Environment Facility (GEF) by country.
