Activists at the Latin America Climate Summit 2023 have called for improvements in Latin America’s carbon market to combat climate change globally.
Daniel Ortega, co-chair of the Voluntary Carbon Market Integrity Council, emphasized the vital role of forests in boosting the region’s carbon market.
Forests not only reduce emissions but also protect biodiversity and support conservation efforts.
Ortega acknowledged that Latin America’s participation in the carbon market lags behind Asia, which leads the world in this area.
However, countries like Brazil, Mexico, Colombia, and Chile have made some progress.
He also highlighted the opportunities for Latin America’s industrial sector to access financing through the voluntary carbon market.
Companies can use emission reduction or removal actions to support sustainable practices such as solar panels, energy efficiency measures, and forest protection.
Susana Vélez, representing Verra, stressed the importance of the carbon market in mobilizing private sector resources.
These resources can particularly benefit vulnerable communities and economic sectors lacking the capacity to drive change independently.
Analysts also highlighted cultural and methodological challenges facing the carbon market in the region.
Manuel Batista from the Latin American Stock Exchange (Latinex) emphasized the need for education and cultural understanding of the carbon market and its environmental implications.
José Miguel Alvarado from Chile’s Ministry of Finance identified deficiencies in the region, such as the absence of methodologies to measure emissions and insufficient institutional support for carbon market development.
Addressing these challenges and strengthening Latin America’s carbon market is crucial for mitigating climate change and achieving sustainable development in the region.