Yes, we can. How to reduce the impact of climate change on Latin America’s infrastructure

For every dollar invested in prevention, we save more than seven dollars in reconstruction; hence the importance of planning, designing, financing and operating resilient, low-carbon infrastructure in the region. Argentina and Chile are already making strides on this issue, which will be discussed at the Conference on Infrastructure for the development of Latin America, organized by CAF at the Alvear Icon Hotel in Buenos Aires on April 25-26.

Latin America and the Caribbean are particularly vulnerable to the effects of climate change due to geographic location, territorial distribution of their populations, and reliance on natural resources. In areas such as south-eastern Argentina, southern Chile, southern Peru, Costa Rica and much of Colombia, rainfall patterns are expected to drop, while hurricanes should grow in intensity and frequency in the Caribbean. Similarly, at the southern end of Patagonia and in the Andes – especially in Colombia, Peru, Bolivia and Ecuador –, glaciers are projected to shrink in area.

Changes in weather patterns will have a direct and indirect impact on the region’s infrastructure, prompting annual economic losses in the range of 1.5% to 5% of the GDP by 2050, as estimated by an ECLAC study. The severity of damages will depend on each country’s vulnerability and resilience, as well as measures taken in the short term to address this threat.

We can minimize the effects of climate change on infrastructure and society by making investments in infrastructure that improves resilience and reduces greenhouse gas emissions. While the cost of this type of infrastructure may be higher, the benefits outweigh the expenditure. This is because according to UNDP, for every dollar invested in disaster prevention we save more than seven dollars in reconstruction, while saving human lives, in case of disasters. At the same time, this strategy expands the lifespan of infrastructure, making thus for a sustainable investment.

Tackling this issue requires innovation in the way we devise projects and raise awareness about the benefits and opportunities of resilient, low-carbon infrastructure. Therefore, the planning, design, financing and operation of infrastructure, in cities and rural areas, should consider various climate scenarios, in order to increase resilience, decrease vulnerability and, at the same time, promote sustainable development.

For example, Argentina is taking action on the issue with support from CAF - development bank of Latin America - through the development of a climate change adaptation project. The Comprehensive Management Plan for the Luján River Basin, in the province of Buenos Aires, will help prevent the worst effects of extreme weather events such as floods, benefitting more than 2,800,000 people, accounting for 17% of the total province population.

“This project shows that investing in climate change adaptation measures, for example to cope with changes in seasonal rainfall patterns, helps protect human lives and modernize existing infrastructure, making them more resilient,” said Ligia Castro, Corporate Director of Environment and Climate Change at CAF.

Thanks to its innovative structuring approach, this initiative received the first concession loan for climate change adaptation granted by the Green Climate Fund (GCF) for USD 58.5 million, managed by CAF as executing agency. The Institution had already granted two additional loans to the project for USD 220 million.

Chile is another example in the region, with its “Climate Change Mitigation and Adaptation Plan for Infrastructure Services, 2017-2022” which was launched 10 years ago and recently updated its roadmap until 2022, under the coordination of the ministries of Environment and Public Works. This plan includes 30 lines of action and 16 specific objectives, divided into 96 specific measures aiming at tackling this issue based on adaptation and mitigation strategies, by adjusting the designs of infrastructure projects to minimize damage and negative impact, while conceiving climate change management from a communal, regional and national perspective.

These and other instances of progress in the region, along with the challenges and opportunities in the design, planning, financing and operation of resilient, low-carbon infrastructure, will be discussed at the Conference on infrastructure for the development of Latin America, organized by CAF, to be held on April 25 and 26 at the Alvear Icon Hotel in Buenos Aires, Argentina. Click here for the full conference agenda and free registration form.

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