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introDuCtion Latin America and the Caribbean is a heterogeneous region, where prevailing poverty rates, inequality levels and climate change vulnerability undermine development and economic growth. Latin America and the Caribbean comprises 33 countries, each with different realities: different geographies, natural resources, peoples, political ideologies, governments, tax structures and forms of energy provision. These differences must all be taken into account when reading this report, which by necessity uses generalisations to present an overall view of the region. However, beyond these differences, the region shares a number of environmental challenges such as climate change, biodiversity loss, water and soil management, growing urbanisation, poverty and inequality. Latin America and the Caribbean is one of the most biodiverse regions in the world, a so-called megadiverse region. It is located between the Atlantic and the Pacific oceans, holds the largest freshwater sources in the world and has a remarkable cultural heritage.1 Historically, the region’s copious forest biomass has substantially contributed to maintaining low levels of carbon dioxide (CO2) in the atmosphere by absorbing and storing enormous quantities of carbon.2 One-third of the world’s forests are found in the region, including two-thirds of the remaining tropical forests. The availability of natural resources has meant that to date, economic development of the region has largely focused on extractive industries such as oil and mining, together with forestry and the expansion of agribusiness. As of 2013, Venezuela has the world’s largest proven oil reserves – some 298 billion barrels, 17.7% of the world total.3 Coal is extensively mined in Colombia, aluminium in Brazil and Argentina, and Peru, Mexico, Brazil and Chile are among the top gold producing nations globally.4 Brazil, meanwhile, has more arable land than any other country on Earth. These activities have usually been conducted with little regard to their environmental impact, their effect on the quality of life of local communities, or the long-term effects on people’s livelihoods. Damaging environmental, economic and social impacts have resulted at a local level while a steady rise in harmful greenhouse gas emissions (GHGs) is occurring across the region generally. Considering that climate change mainly impacts the poor (40% of whom are expected to be adversely affected across the world), it is forecast that women will be more affected.5 The region’s current development model is based on the path followed since the dawn of the industrial revolution by countries in the developed world, one that is characterised by a heavy reliance on fossil fuels for energy – the major cause of damaging GHG emissions worldwide. In Latin America and the Caribbean’s case, the damage caused by the use of such fuels has been compounded by a dramatic loss of forest. Today, although regional per capita energy consumption remains low compared to that in the developed world, some countries are approaching levels of energy demand that rival consumption in developed countries, with the attendant increase in pollution, including GHG. This would threaten the region’s economy in both the medium and long term by increasing risks, reducing productivity and driving up costs. The shifting of climate patterns, and unpredictable seasons, may adversely affect agricultural output for smallholders and agribusiness alike. The increased frequency of extreme climate events threatens the integrity of the region’s infrastructure, while the melting of Andean glaciers – a process already under way according to the Intergovernmental Panel on Climate Change (IPCC), a scientific intergovernmental body under the auspices of the UN – may lead to water scarcity in many of the countries whose rivers have historically been fed by glaciers.6 It doesn’t have to be this way. With the race now on globally to curb GHG emissions to prevent global warming rising above 2o – the point beyond which scientists predict 4 Low-Carbon Development in Latin America and the Caribbean: Evolution, experiences and challengesPDF Image | Low-Carbon Development in Latin America
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