Latin America Climate Commitments at COP 26

Latin America’s attendance at last year's COP 26 conference in Glasgow highlighted the vulnerability that these emerging economies face. According to the Interamerican Development Bank, eight Latin American countries were ranked in the top 10 most likely to be impacted by the effects of climate change. Nevertheless, larger economies such as Brazil and Mexico are significant contributors to climate change and must begin implementing stricter regulations to help limit global temperature rise to 1.5ºC. They must also fully commit to supporting the global emission decrease of 45% by 2030 and net zero policies by 2050. Apala Group has created a summary of key Latin American countries' pledges following the 2021 COP 26 international gathering.

Brazil

Brazil is the largest greenhouse gas emitter in the region and critical to Latin America’s overall climate change strategy. In addition, Brazil’s Amazon rainforest makes it one of the world’s largest land carbon sinks, removing more greenhouse gasses (GHG) from the atmosphere than it emits. While recent political activity has marked Brazil as a facilitator of climate change, their participation in the summit brought some promising, yet controversial, action. A few days prior to COP 26, Brazil’s Ministries of Environment and Economy launched the Green Growth Program. This is following the federal government announcement of R$411 billion in credit lines for projects such as conservation and restoration, waste management, eco-tourism, low emission agriculture, renewable energy, urban mobility, and green infrastructure, amongst others. Brazil has committed to reviewing their ABC+ Plan, which has goals to reduce greenhouse gas emissions in agriculture to an equivalent of 1.1 billion tons by 2030.

Mexico

Mexico has recently undertaken new energy initiatives with plans to exclude private and international involvement from the country’s transition into renewable energy. Nevertheless, the most recent release of the PRODESEN (National Electricity Development Plan) from 2021-2035, states the current national plan for the electricity market and grid for Mexico, including its transition and integration of new renewable energy projects. During COP 26, the nation joined several pledges including the Declaration of Forests and Land Use, working to halt deforestation by 2030 and facilitate inclusive rural development. Furthermore, Mexico has joined the Global Methane Pledge to phase out its use in Mexico by 2030. In addition, Mexico participated in creating the International Sustainability Standards Board (ISSB). The ISSB will develop a comprehensive global baseline of disclosure standards for financial markets that meet the growing and urgent demand to formalize corporate sustainability. Mexico called on developed countries to fulfill their previous commitments to mobilize $100 billion per year for climate financing between 2020 to 2025 to developing economies.

Chile

One of the largest contributions from Chile was their commitment to the Glasgow Zero Emission Vehicle Pledge, with the objective of phasing out combustion vehicles by 2035. This coalition was signed by 30 countries and represents almost 15% of the global market, an equivalent of 11.5 million vehicles. Similarly, Chile’s Energy Minister formally committed to end the use of coal power by 2040, which currently makes up 40% of their energy mix. Half of the current coal plants are already being scheduled for decommission by 2025. On the other hand, Chile communicated that the ongoing work of their Recycling and Producer Extended Responsibility Law is key to accounting for the reduction of 6% of national emissions associated with waste. 

Colombia

Colombia's president, Ivan Duque, was very clear and intentional during his participation in the summit, highlighting that Colombia is fully committed to reduce their greenhouse gas emissions by 51% by 2030, moving towards their path for net zero in 2050. He also distinguished Colombia as a country that prioritizes natural resources and is set to declare 30% of their territory as protected land. Although Colombia is only representative of 0.6% of global emissions, their commitment level is high and is a promising move to invite larger countries to follow. 

Carbon Intensity of Electricity Grids in Latin America. Copyright 2021 by Apala Group.

Argentina

The president of Argentina, Alberto Fernandez, demanded at COP 26 that a system of "debt swap for climate action" be created to achieve the decarbonization of the world economy. He said it is necessary to apply the issuance of special drawing rights of the International Monetary Fund (IMF) to a great pact of environmental solidarity that includes low-income and middle-income countries. Additionally, the Argentine government added its signature to a commitment to stop and reverse deforestation as well as the Global Methane Pledge. Argentina also committed to limiting the emission of carbon dioxide to the atmosphere to a maximum of 352 mega tonnes by 2030. 

Peru

Peru signed the Glasgow Leaders' Declaration on Forests and Land Use, outlining their importance in creating a climate-stable future and ensuring Peru’s plan to end deforestation by 2030.  Peru pushed forward the National Registry of Measure and Mitigation, which will create a digital platform for carbon mitigation registration within different industrial sectors of the country. Also, the country mentioned it is improving its Carbon Footprint tool which works hand in hand with the NDC Support Program to recognize the public and private efforts towards carbon reduction. 

Ecuador

Ecuador joined the Global Methane Pledge, stating that the country was fully committing to transforming methane gas into usable energy and taking responsibility to ensure that 30% of global methane emissions are reduced by 2030. Furthermore, the Ecuadorian president Guillermo Lasso announced the creation of a new marine reserve in the Galapagos. This coalition involved Colombia, Costa Rica and Panama with the purpose of protecting 60,000 square kilometers of the ocean within two vulnerable areas, conserving their biodiversity and marine resources. 

Next Steps

While Mexico and Brazil are amongst the top 20 emitters globally, the Latin America and Caribbean market, as a whole, accounts for only 10% of global emissions. Emissions from the market are primarily associated with their energy sector, agriculture and land use. Further investment in renewable energy and electromobility could potentially be next steps to consider, given that the region has great potential in hydroelectric, wind, solar and geothermal energy.  Due to LAC’s major vulnerability to climate change, on average 1.7% of GDP is lost yearly due to climate disasters and 3 million people are expected to move into poverty by 2030. Challenges lay ahead for Latin America and there is a large responsibility for developed countries to follow through with their USD$100 billion annual mobilization to assist developing countries with their resilience and adaptation to climate change.