Stimulating a Green Recovery in Latin America

Latin America and Caribbean Centre, LSE / YouTube

EXTERNAL ENGAGEMENT

On February 9, the Latin America and Caribbean Centre at the London School of Economics and Political Science hosted an event on the potential for a green recovery in Latin America following the devastating economic impacts of Covid-19. Lisa Viscidi, director of the Energy, Climate Change & Extractive Industries Program at the Dialogue, presented the findings of her recent report which examines how revenue from extractive industries can be used to accelerate climate change mitigation and adaptation in Colombia and Peru.

COMMENTS BY LISA VISCIDI:

"Latin America is one of the world’s richest regions in natural resources, and the oil and mining sectors contribute a significant share of fiscal revenues in many of the region’s economies. As economies seek to rebuild in the aftermath of the Covid-19 crisis, there is an opportunity to accelerate climate change mitigation and adaptation and shape more sustainable economic models. I think revenues from the extractive industries can provide crucial resources in this effort."

"I think fossil fuel industries like oil, natural gas and coal, are confronting major longer-term shifts in their operations and will likely face declining demand for their emissions-generating products as a result of efforts to combat climate change. Extractive industries revenues can support countries’ efforts to diversify away from fossil fuels for energy consumption in the longer term as part of a Covid-19 “green recovery” strategy. In the case of many metals and minerals, demand is actually expected to increase as the world transitions to cleaner forms of energy, so those revenues will become more abundant and can be used in the fight against climate change."

"The economic recovery from Covid-19 presents an opportunity to reform systems for spending extractive industry revenues and reorient them towards a more resilient and sustainable development models like reforestation, conservation, and ecosystem-based adaptation."

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Full recording of the event available here: