Protecting Nature: Our Future | Global Issues
- Panama City – The United Nations Development program (UNDP) and Sweden, through the Swedish International Development Cooperation Agency (SIDA), are collaborating to address environmental crises in Latin America...
- Lyes Ferroukhi of the UNDP and Karin Metell of SIDA argue that a degraded planet undermines economic prosperity, stability, and overall development.
- latin America and the Caribbean, home to 40% of the world's biodiversity, face a significant funding gap in protecting their natural resources.
Protecting Latin america’s rich biodiversity, home to 40% of the world’s species, is vital for our future. The UNDP and Sweden are spearheading initiatives to combat environmental crises that exacerbate social and economic risks in the region. Crucially, they are using green finance as a strategic tool. This involves strong public policies and private sector involvement to bridge the notable biodiversity funding gap, which is estimated to be hundreds of billions of dollars annually. A key focus is on mobilizing climate and environmental finance. By strengthening regulatory frameworks and encouraging collaboration, the project is already showing success, unlocking millions for enduring projects, including electric buses. News Directory 3 covers these developments. Discover what’s next for green finance in Latin America and the Caribbean.
Green Finance Drives Sustainability in Latin America and Caribbean
updated June 4, 2025
Panama City – The United Nations Development program (UNDP) and Sweden, through the Swedish International Development Cooperation Agency (SIDA), are collaborating to address environmental crises in Latin America and the Caribbean, viewing them as critical multipliers of social and economic risks.
Lyes Ferroukhi of the UNDP and Karin Metell of SIDA argue that a degraded planet undermines economic prosperity, stability, and overall development. They emphasize that the “triple planetary crisis”—climate change,biodiversity loss,and pollution—demands a shift in development models.
latin America and the Caribbean, home to 40% of the world’s biodiversity, face a significant funding gap in protecting their natural resources. Estimates suggest an annual international biodiversity financing shortfall between $598 billion and $824 billion. Climate finance flows also fall short of the region’s needs to meet emission reduction and climate adaptation goals.
To combat this, green finance is emerging as a strategic tool, requiring strong public policies, regulatory frameworks, and private sector engagement. The UNDP and Sweden’s Green Innovative Finance initiative (GIF 4 LAC) aims to mobilize climate and environmental finance by strengthening regulatory frameworks, improving clarity, and fostering private sector collaboration.
The initiative is already yielding results. In El Salvador, a government team utilized insights from a UNDP and INCAE Business School course to secure a $5 million loan for an electric bus project in San Salvador, perhaps unlocking an additional $300 million for public transport transformation.
The UNDP and Sweden are also partnering with companies like Devcco, which promotes clean technologies, and Avfall Sverige, which champions zero-waste models, demonstrating the potential to align profitability with sustainability.
Ferroukhi and Metell assert that protecting the planet fosters lasting economic and social development. They call for increased stakeholder participation to seize the historic opportunity of investing in nature for a better future.
What’s next
The Green Innovative Finance initiative will continue to expand its reach, seeking to mobilize further investment in sustainable projects across Latin America and the Caribbean. Focus will be placed on scaling successful models and fostering greater collaboration between public and private sectors to achieve lasting environmental and economic benefits.