The Champions and Laggards in the Latin American Battle Against Climate Change: Part I

The Paris Agreement designed to counter climate change, signed in 2015, had countries worldwide commit to reducing greenhouse gas emissions to deter global temperature from rising above 2 degrees Celsius (3.6 degrees Fahrenheit). Such policies came on the heels of climate anomalies that have impacted the world in recent years due to the heavy amount of pollution that countries are emitting without control. Scientists warn that if governments do not commit to these targets, the planet will continue to increase temperature causing several climate catastrophes that will make life almost impossible on Earth. However, despite the urgent calls to address this pressing issue, several countries that agreed to address the rise in temperature have been failing to accomplish any progress. The Climate Action Network published a report that ranks the world and regional leaders as the ones with the weakest responses. This case study focuses on the climate progress in Latin America and approaches the topic through a system of champions and laggards. The purpose is to look at two Latin American climate champions (Chile and Costa Rica) and two climate laggards (Mexico and Brazil). Upon analyzing the status of these Latin American countries, it will be easier to understand the relationship between the economy and environmental progress in the region.

Observing the climate champions, it is imperative to commence with Chile. In April 2020, Chile became one of the first countries in the world to announce an updated Nationally Determined Contribution (NDC) under the Paris Agreement. Despite the COVID-19 outbreak and ongoing political protests, the Chilean government and its citizens prioritize the environment’s well-being. Although Chile has not achieved the 2-degree or the 1.5-degree goals, it has made significant progress since it signed the pledge in 2015. In the reformed NDC, Chile moved from an emissions intensity-based target to an absolute emission reduction target by 2030 of Metric tons of carbon dioxide equivalent (95MTCO2eq), which does not include the forestry industry. The new plan sets a carbon budget for the 2020-2030 fiscal period by committing to peak emissions of greenhouse gasses by 2025 and obliges a reduction in the use of short-lived climate pollutants like black carbon. The current policy includes the Renewable Energy Law (Law 20.257/2008) and the carbon tax law (Law 20.780/2014). Chile is also planning to reduce the 2020-2021 emissions by estimating the emissions intensity of the economy and adjusting it to the most recent GDP projections. Overall, Chile plans to achieve carbon neutrality by 2050. Additionally, Chile is looking forward to electrifying all means of transportation and closing all coal plants by 2040. 

From South America to Central America, Costa Rica takes the crown as one of the most sustainable and environmentally efficient countries in Latin America. On the Climate Action Tracker (CAT), Costa Rica occupies a rank of “compatible,” which means that Costa Rica has already achieved the Paris Accord’s goal of contributing its fair share to reducing temperatures by 2°C. In 2019, Costa Rica established a strategy toward net-zero emissions by 2050 through a new plan, the National Decarbonisation Plan 2018-2050. The plan consists of electrifying the public transport system, energy efficiency measures in the industry, transport (incl. freight), building sectors, and improved farming practices and standards in the waste and agriculture sectors. The National Decarbonisation Plan is more ambitious than Costa Rica’s pledge for the Paris Agreements as this plan offers a roadmap with key actions to consolidate the process towards the decarbonization of the Costa Rican economy. Like in most countries, COVID-19 has impacted the progress of several development plans. However, the solid green leadership that Costa Rica has established has not faded with the pandemic. A recent IDB analysis found that implementing the Decarbonization Plan would bring $41 billion in net benefits from 2020 to 2050. Despite being one of the smallest countries in Latin America, Costa Rica has had one of the highest success rates in greening the economy because the country has maintained an environmentally conscious society and has found a way of profiting without the depletion of natural resources. 

The way which countries in Latin America have been falling behind in the battle against Climate Change will be explored in the second part of this article, which can be found here.