Landscape of Climate Finance in Latin America and the Caribbean 2026

Climate Policy Initiative’s 2026 report provides a comprehensive assessment of climate finance in Latin America and the Caribbean, tracking public and private investment across mitigation, adaptation and dual-benefit activities from 2020 to 2024. It examines climate finance needs, renewable energy, AFOLU, resilient infrastructure, sustainable finance, private capital mobilization and regional financing gaps across the Caribbean, Central America, Mexico, South America and Brazil.

Climate Policy Initiative (CPI)202612 Oct 2026

PublisherClimate Policy Initiative (CPI)

Year2026

RegionGlobal

FormatPDF, 3.8 MB

4views

Key Takeaways

Climate finance in Latin America and the Caribbean reached USD 108 billion in 2024, double the USD 54 billion recorded in 2020, although investment plateaued from USD 110 billion in 2023. Brazil accounted for 58% of total tracked regional flows. Landscape-of-Climate-Finance-in…
The region requires an estimated USD 467 billion to USD 847 billion annually in mitigation finance between 2025 and 2030. Current flows fall short of average estimated needs by around five times, widening to almost eight times under the high-needs scenario.
The climate finance gap is particularly severe in hard-to-finance sectors. The report estimates that industry requires 26 times current investment, transport 25 times, and AFOLU more than seven times, rising to 125 times for AFOLU when Brazil’s unusually large flows are excluded.
Adaptation finance remains significantly underfunded, representing only 11% of climate finance in 2023/24, while mitigation finance reached USD 85 billion in 2024. The report highlights a particularly acute adaptation financing challenge across climate-vulnerable Caribbean and Central American economies.
Around 69% of tracked climate finance came from domestic sources in 2023/24, led by Brazil and Mexico. However, outside Brazil, Mexico and Chile, public actors still supplied roughly 60% to 84% of climate finance, demonstrating the continuing challenge of mobilizing private capital across less mature markets.

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