WASHINGTON (CMC) – A new World Bank report has called on countries in the region to take urgent action to help reduce the impacts of climate change and set a path for the transition to low-carbon economies.

According to the report, ‘A Roadmap for Climate Action in Latin America and the Caribbean 2021-2025’, climate-related disasters such as hurricanes, droughts, fires, and floods are becoming increasingly frequent and intense in the region and are the cause of enormous economic losses.

It noted that Latin America and the Caribbean (LAC) is among the regions most vulnerable to the destructive power of such events, with annual costs due to disruptions in energy and transport infrastructure equivalent to 1 per cent of regional GDP and up to 2 per cent in some Central American countries.

Furthermore, climate change is expected to have negative impacts on productivity and harvests in several countries in the region.

The World Bank said this could exacerbate acute food insecurity, which increased rapidly during the coronavirus pandemic to affect more than 16 million people across the region, with many families at risk in 2022 due to higher inflation and food prices. Without action, by 2030, up to 5.8 million people could fall into extreme poverty as a result of climate change, and by 2050 over 17 million people could be forced to leave their homes to escape climate impacts.

“Countries in LAC have a unique opportunity to act swiftly and lead the change towards more resilient and low-carbon economies that foster a better future for their people,” said Carlos Felipe Jaramillo, World Bank Vice President for Latin America and the Caribbean.

“The World Bank has long been a strong partner to the region and as part of our long-term commitment to achieving sustainable and inclusive development, we have stepped up our support, providing about $4.7 billion in climate-related financing during the last year.”

The region is responsible for 8 per cent of global greenhouse gas emissions. The agricultural sector, together with changes in land use and deforestation, accounts for 47 per cent of emissions in LAC, well above the global average of 19 per cent. Energy, electricity consumption, and transportation account for another 43 per cent of emissions. The report emphasises opportunities in these areas for both economic growth and services with lower emissions as key to accelerating climate action and leading an urgent transition to low-carbon economies to avoid the irreversible effects of climate change.