Wind energy in Costa Rica.
Cynthia Flores / World Bank
The climate crisis in Latin America and the Caribbean will not go away.
Like the covid-19 pandemic, the climate affects the most vulnerable in the region the most.
In terms of migration alone, there could be 17 million climate refugees in our countries by 2050, in areas where life systems are increasingly compromised by climate change.
Both the climate crisis and the pandemic are exacerbating underlying inequalities and low economic returns.
As we move forward with the coronavirus recovery, we must also rebuild better and prepare for the looming climate crisis.
Today, most of the region's economies face two central challenges: recovering from a severe economic recession while facing the structural transformations necessary for inclusive growth and sustainable development that offer all paths out of poverty.
Covid-19 recovery programs that prioritize productivity, inclusion and resilience will lead to greater competitiveness and innovation, and rebuilding trust in government and institutions.
This will prepare Latin America and the Caribbean to combat the coronavirus and climate change and help to rebuild the social contract so important to accelerate poverty alleviation and shared prosperity.
Clean energy and transport are key sectors on the regional agenda for better reconstruction.
Although Latin America already extracts most of its electricity from renewable sources, the most important, hydroelectric generation, is increasingly vulnerable to variations caused by climate change.
It will be increasingly difficult to expand that capacity to respond to expected demand once the current crisis is over.
Non-traditional renewable energies, wind and solar in particular, can today be competitive in terms of their costs in many countries if the regulatory and contractual barriers for their integration into the energy matrix are overcome.
Investments in energy efficiency in buildings could reduce the carbon footprint and generate many low-skilled jobs for building renovation.
In road matters, a new approach to public transport should be a high priority.
The design of cities to avoid their expansion and encourage urban development around transit interchanges such as metro and bus stops will help reduce the demand for motorized transport and should go hand in hand with accessible rapid and subway systems, incorporating every and more electric vehicles.
Done right, adapting and building resilience to climate change can generate enormous economic, social and environmental benefits, stimulating growth and employment while creating natural capital.
For example, investment in adaptive infrastructure, such as roads and weather-resistant housing, can have positive effects on employment in the construction sector and improve the longer-term situation in households.
For every million dollars invested in construction, about 200 jobs are expected to be created in Bolivia, 130 in Nicaragua and 120 in Honduras.
According to a recent study by the World Resources Institute and the New Climate Economy, moving to a sustainable, low-emission economy could add an additional $ 535 billion to Brazil's GDP by 2030.
Low-carbon alternatives do not have to compromise development results, macroeconomic stability, or debt sustainability.
While the difficult fiscal situation in the region could represent a challenge for climate initiatives, it could also be an incentive to reorient programs that support the unsustainable use of natural resources or carbon-intensive models that lock countries in low productivity and reduce your competitiveness.
Redirecting the estimated $ 240 billion in annual fuel subsidies at the regional level would allow investments in clean energy and transportation to move the region to a low-carbon future.
For this reason, several countries in the region have put climate change and inclusive and resilient development at the center of their recovery plans from the pandemic.
Colombia included clean growth (“Producing by conserving and conserving by producing”) and support for the bioeconomy.
Chile already announced that 30% of the additional resources for public investment in the framework of its recovery plan (Paso a Paso, Chile se Recupera) will be used for green and sustainable projects.
The World Bank is a partner in this effort.
We approved $ 6.6 million to fund Dominica's emergency response, aimed at improving the capacity of the health system and strengthening food security, both for climate resilience and immediate economic recovery.
We are supporting Uruguay with funds of $ 400 million to mitigate the economic and social impact of the Covid-19 outbreak, while laying the foundations for a strong and resilient economic recovery.
This was a crucial response to the pandemic, which hit Uruguay at a time when a severe drought was affecting agricultural production.
Across our regional portfolio, we have combined investment for the response and recovery of the coronavirus with financing that prioritizes inclusive development and long-term resilience.
Like the pandemic, climate change has undermined public safety and prosperity throughout the region.
Fighting both at the same time is the key to rebuilding better.
* Carlos Felipe Jaramillo is Vice President of the World Bank for Latin America and the Caribbean