Spanish investors can capitalize on the low-carbon transition in Latin America

The Elcano Royal Institute is a think-tank for international and strategic studies that analyses world events and trends from a Spanish, European and global perspective.

The Analyses of the Elcano Royal Institute (ARI)are short pieces - of around 3,000 words - on aspects of current international affairs considered to be of relevance to Spain, its foreign policy or its security. In broad terms ARIs are intended to have a predictive bearing on events.The Sustainable Development Goals (SDGs) and the Paris Agreement present Latin America with an invaluable chance to revise and redirect policies and investment towards building more prosperous, low-carbon and resilient economies. Concerns in the region about the current economic malaise should not distract attention from the implementation of the SDGs or the Paris Agreement.

Spanish companies working in the energy, infrastructure, waste management and consulting sectors could benefit from ambitious climate action in Latin America. This paper provides an overview of Latin America’s contribution to global greenhouse gas emissions followed by an analysis of the physical, economic and political risks facing Latin America’s development model within the context of the new climate and sustainability agenda. It reviews the SDGs and the Paris Agreement as a framework for action and examines some of the opportunities and challenges for Spanish investors in low-carbon and climate resilient development in Latin America.