GFANZ to support LatAm and Caribbean climate finance

The Glasgow Financial Alliance for Net Zero (GFANZ) has launched a Latin America and Caribbean network to accelerate efforts to unlock climate finance in the region.

GFANZ members, of which there are more than 500 representing over $130 trillion in assets under management and advice, must commit to a net zero goal by 2050, provide 2030 targets and deliver transparent reporting in line with UN criteria. GFANZ was launched at the UN Cop 26 climate summit in Glasgow.

The launch of the regional network follows the creation of similar and "successful" networks last year for the Asia-Pacific region and for Africa, the alliance said.

GFANZ aims to work with local financial institutions to support climate finance, it said at the UN's Latin America and Caribbean Climate Week event held this week in Panama. This includes supporting financial institutions on planning for the transition, implementing climate targets, building capacity, and engaging with policymakers on actions to accelerate capital mobilization.

"Latin America and the Caribbean contribute less than 10pc of global greenhouse gas emissions yet is one of the most vulnerable regions to a diverse set of climate-related risks," GFANZ said.

However, the alliance also sees the region can take advantage of its climate-related resources and help lead global climate solutions. This including tropical rainforests, which are critical for carbon storage, critical minerals for the energy transition, and good prospects for renewable energy that can improve energy security, access, and sustainability.

By Canute James