Climate change is a global phenomenon but is manifested in heterogeneous ways across regions. Even though least developed countries have a lower contribution to global greenhouse gas emissions, they are more sensitive to climate impacts and have a lower capacity for adaptation and mitigation. According to the UNEP’s Adaptation Gap Report, the costs of adapting to climate change in developing countries could range from US $140 billion to US $300 billion by 2030.

Current cost estimates of adaptation in such countries vary strongly in accordance to the level of global warming, the methods used to estimate them, the ethical choices made, the economic framework applied, and the assumptions made. But at least two things are certain: first, developments in technology, finance and knowledge are key to close the adaptation gaps, and second, the private sector has the largest potential to invest in such developments and benefit from them.

In the specific case of Latin America, countries are in a particularly vulnerable situation given the increasing frequency of extreme climate events and the low adaptive capacity of human systems. According to the UN’s Intergovernmental Panel on Climate Change, the projected mean warming for Latin America to the end of the century could range from 1 to 4°C. Such temperature changes will increasingly cause competition for natural resources and direct and indirect climate risks to the private sector. These risks can already be seen in terms of threats to security of supply of key industrial inputs, price volatility, and other associated disruptions in global operations. In light of this, business activity will need to become seriously redefined and rescaled to fit into a finite planet, governed by limits and scarcity.

In this context, governments in the region are already becoming more concerned with issues of adaptation to the shifting conditions and the proper allocation of the existing resources, which will probably be translated into increased regulation, scrutiny, and economic burdens for the private sector. Economic activity in the region is also becoming affected by shifts in the global political and economic centers. As power continues to move from industrialized nations towards emerging economies like China and India, trade structures and the demands placed by the new global buyers will also impose new burdens on local companies that want to participate in international markets.

Although consumer and employee mobilization is a relatively new phenomenon in Latin America, consumers are beginning to understand how they can exercise their power through mass mobilization in social media and purchase choice. In this regard, the contributions of international and national NGOs in getting some groups organized to demand that the private sector reduces its emissions and takes climate-related action has been notable. It is estimated that in the coming years pressure from civil society will continue to grow, demanding that businesses move away from a “doing more with less” approach and towards a reconceptualization of the products and services that they offer.  

In this regard, coordination between national governments and civil society has been key to translate global emission reduction targets into company targets. The challenge that lies ahead consists on securing increased private sector commitment, while helping companies to define voluntary actions that are aligned with the global targets, and that are properly established, measured, reported and verified. Last but not least, such transition towards a low carbon economy will continue to offer opportunities for developing appropriate financing schemes, technology, and capacities both within and outside the private sector.

A specific area of opportunity in this regard concerns the development and transfer of new clean energy technologies across the region, as well as the development of regional markets for renewable energies to help boost the transition to low carbon economy. To this end, frontrunner organizations will need to move ahead of government-led efforts and continue to support initiatives geared towards climate change mitigation and adaptation, particularly in terms of developing and sharing key information in areas such as low-carbon electricity, carbon capture and use, clean energy technologies, energy efficiency, and emissions reduction.

In this sense, collaboration between academic institutions in different countries, as well as coordination with and through international NGOs will be vital to advance the current global agenda. An example in this regard is the Renewable Energy Buyers Alliance (REBA), a collaborative platform created by non-profits World Wildlife Fund (WWF), Rocky Mountain Institute, World Resources Institute, and Business for Social Responsibility (BSR) that is helping grow corporate demand for renewable power and helping utilities and others meet it. Initiatives like REBA exist to make the energy transition easier, connecting corporate demand to renewable energy supply to produce a market that is in line with the greenhouse gas emissions reduction targets set globally.

Climate change is a global phenomenon but is manifested in heterogeneous ways across regions. Even though least developed countries have a lower contribution to global greenhouse gas emissions, they are more sensitive to climate impacts and have a lower capacity for adaptation and mitigation. According to the UNEP’s Adaptation Gap Report, the costs of adapting to climate change in developing countries could range from US $140 billion to US $300 billion by 2030.

Current cost estimates of adaptation in such countries vary strongly in accordance to the level of global warming, the methods used to estimate them, the ethical choices made, the economic framework applied, and the assumptions made. But at least two things are certain: first, developments in technology, finance and knowledge are key to close the adaptation gaps, and second, the private sector has the largest potential to invest in such developments and benefit from them.

In the specific case of Latin America, countries are in a particularly vulnerable situation given the increasing frequency of extreme climate events and the low adaptive capacity of human systems. According to the UN’s Intergovernmental Panel on Climate Change, the projected mean warming for Latin America to the end of the century could range from 1 to 4°C. Such temperature changes will increasingly cause competition for natural resources and direct and indirect climate risks to the private sector. These risks can already be seen in terms of threats to security of supply of key industrial inputs, price volatility, and other associated disruptions in global operations. In light of this, business activity will need to become seriously redefined and rescaled to fit into a finite planet, governed by limits and scarcity.

In this context, governments in the region are already becoming more concerned with issues of adaptation to the shifting conditions and the proper allocation of the existing resources, which will probably be translated into increased regulation, scrutiny, and economic burdens for the private sector. Economic activity in the region is also becoming affected by shifts in the global political and economic centers. As power continues to move from industrialized nations towards emerging economies like China and India, trade structures and the demands placed by the new global buyers will also impose new burdens on local companies that want to participate in international markets.

Although consumer and employee mobilization is a relatively new phenomenon in Latin America, consumers are beginning to understand how they can exercise their power through mass mobilization in social media and purchase choice. In this regard, the contributions of international and national NGOs in getting some groups organized to demand that the private sector reduces its emissions and takes climate-related action has been notable. It is estimated that in the coming years pressure from civil society will continue to grow, demanding that businesses move away from a “doing more with less” approach and towards a reconceptualization of the products and services that they offer.  

In this regard, coordination between national governments and civil society has been key to translate global emission reduction targets into company targets. The challenge that lies ahead consists on securing increased private sector commitment, while helping companies to define voluntary actions that are aligned with the global targets, and that are properly established, measured, reported and verified. Last but not least, such transition towards a low carbon economy will continue to offer opportunities for developing appropriate financing schemes, technology, and capacities both within and outside the private sector.

A specific area of opportunity in this regard concerns the development and transfer of new clean energy technologies across the region, as well as the development of regional markets for renewable energies to help boost the transition to low carbon economy. To this end, frontrunner organizations will need to move ahead of government-led efforts and continue to support initiatives geared towards climate change mitigation and adaptation, particularly in terms of developing and sharing key information in areas such as low-carbon electricity, carbon capture and use, clean energy technologies, energy efficiency, and emissions reduction.

In this sense, collaboration between academic institutions in different countries, as well as coordination with and through international NGOs will be vital to advance the current global agenda. An example in this regard is the Renewable Energy Buyers Alliance (REBA), a collaborative platform created by non-profits World Wildlife Fund (WWF), Rocky Mountain Institute, World Resources Institute, and Business for Social Responsibility (BSR) that is helping grow corporate demand for renewable power and helping utilities and others meet it. Initiatives like REBA exist to make the energy transition easier, connecting corporate demand to renewable energy supply to produce a market that is in line with the greenhouse gas emissions reduction targets set globally.