Latin America lags on decarbonization financing, report says
Decarbonization efforts in Latin America are being held back by lack of policy and private sector financing, according to a report released Wednesday by Janus Henderson Investors.
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The Janus Henderson Latin America Decarbonization Report found that climate bond issuance in Latin America, at $45 billion in 12 countries at the end of 2021, is relatively small compared to the size of the region and to the $1 trillion global climate bond market.
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The market is also fragmented due to divergent climate bond policies and frameworks in the individual countries, making it harder for international investors to participate, the report said.
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The report analyzed decarbonization efforts in Mexico, Central America, South America and the Caribbean using three metrics: renewable energy as a percentage of total energy mix, climate bond issuance as a percentage of total bond issuance, and net-zero target dates.
Most Latin American countries are making commitments to be net-zero by 2050, although eight out of 43 countries analyzed have not, including Mexico and Venezuela, the report said.
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