Enabling financial instruments and carbon pricing to boost compensation markets in Latin America and launch of the Green Hydrogen Project

Within the framework of COP27 in Egypt, the side event “Enabling financial instruments and carbon pricing to promote offset markets in Latin America and launch of the Green Hydrogen Project” was held, with the participation of the implementing partners of the DecarBOOST project in Argentina, Brazil and Peru, academia and regional development banks.

The event began with the launch of the Green Hydrogen Project, led by Andrea Santos from COPPE of the Federal University of Rio de Janeiro and Markus Francke from GIZ Brazil. Subsequently, the three DecarBOOST partners presented the enabling conditions that the project has generated for the decarbonization of their countries.

Finally, the closure was in charge of Jorge Arbache, Director of the Development Bank of Latin America – CAF. The DecarBOOST project was present in the second segment with the participation of Micaela Carlino, project manager in Argentina (Torcuato di Tella Foundation), Emilio La Rovere, project director in Brazil (CentroClima/COPPE/UFRJ), and Blanca Rengifo, coordinator of the project in Peru (Libelula).

In this segment, the first results of the DecarBOOST project in Argentina, Brazil and Peru were announced, seen from the barriers identified to improve the flow of climate financing in these countries, and from the proposals for regulatory changes and financial instruments to overcome the barriers. initially identified. Likewise, up to twenty investment opportunities for low-carbon projects were presented, which allow the implementation of the national goals and commitments of the partner countries in terms of climate change (to learn more about the investment opportunities in these three countries, click here). In addition, the importance of carbon markets for the Latin American region was mentioned, and how the DecarBOOST project can generate a common agenda in the region.

On the other hand, the CAF director stated that the Latin American development bank has been coordinating with local development banks, such as Argentina (BICE) and Peru (COFIDE), the facilitation of financial instruments necessary to generate higher investments with less tax risk. Likewise, he emphasized that development banks seek that value chains can benefit to achieve economic and social development.