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Resilience Now: Closing the Adaptation Gap in Latin America and the Caribbean (LAC)
The Inter-American Development Bank Group (IDBG) exemplifies leadership in this space by delivering innovative financial solutions, sustainable solutions to scale impact in the region, acting as a bridge between the private and public sectors by enabling a new course for the much-needed flow of climate and nature finance and by providing means of implementation on the ground. Successful projects demonstrate the value of integrated approaches that combine infrastructure upgrades, ecosystem restoration, and inclusive governance. Delivering those at scale and moving from individual projects to a programmatic adaption approach is needed to match the scale of the challenge. Climate impacts are projected to intensify as greenhouse gas emissions continue to rise. These effectsdriven by temperature shocks and sea level rise alonecould reduce average GDP per capita by nearly 10% as forthcoming analysis from the Grantham Research Institute shows. In this context, investing in adaptation is no longer optional; it is an urgent necessity that delivers a triple dividend: it helps avoid economic losses, stimulates growth through new opportunities, and generates broader social and environmental co-benefits. To be effective, countries must adopt context-specific strategies that prioritize mainstreaming adaptation into development planning, mobilize innovative financing mechanisms, and strengthen domestic markets for adaptation technologies and services. This report underscores the critical urgency and opportunity for LAC to accelerate climate adaptation through coordinated, well-funded, and innovative actions that address both current vulnerabilities and future risks.
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