January 2022

The Latin America and the Caribbean (LAC) region experienced a historical economic downturn in 2020 with GDP contraction of around 7.0%. Despite a rebound of around 6.0% in 2021, its GDP per capita is not expected to return to pre‑crisis levels before 2023‑24. The post-COVID-19 context provides a unique opportunity to adopt a multi-dimensional strategy for inclusive sustainable development.

  • In Latin America and the Caribbean, UNDP is supporting 12 countries [1] with the design and implementation of the Integrated National Financing Frameworks (INFFs) to strengthen and diversify the domestic and international sources of both public and private finance and develop a financing strategy.
  • Impact investments, seeking a financial return with SDG-aligned positive impact are on-demand in the Region.
    • UNDP’s SDG Impact supports private sector investors in Belize, BrazilColombiaCosta Rica, and Paraguay with the SDG Investor MapsColombia’s SDG Investor Map is utilized by Bancolombia to design its net-zero carbon investment strategy.
    • With UNDP’s support, Mexico became the first country in the world to issue a sovereign SDG bond and issued a second emission of a 15-year SDG Sovereign Bond for a total value of 1,250 m euros in 2021.
    • In Bolivia, the Sustainable Bonds framework of the Productive Development Bank has been finalized with UNDP’s technical assistance and the use of SDG Impact Standards for Bond Issuers.
    • In Argentina, UNDP has worked with Banco de la Nación to apply the SDG Impact Standards in their loan portfolio.
    • In Uruguay, UNDP, together with the Inter-American Development Bank, supports the Ministry of Economy and Finance to issue a sustainability-linked sovereign bond.
  • Four new UNDP-OECD Tax Inspectors without Borders (TIWB) programmes launched in Colombia, Ecuador, El Salvador, and Honduras support domestic fiscal revenues. Until today, TIWB supported the collection of US$121.8 m additional tax in the Region. [3]
  • In Uruguay, UNDP - UNIDO - UN Women joint programme received US$10 m from the Joint SDG Fund and is expected to leverage more than US$68 m, which will support Uruguay’s second energy transition. UNDP also works on the Renewable Energy Innovation Fund, a blended finance window for green transition projects. This programme is expected to have a strong demonstrative effect on innovative financing for developing countries.
  • The Insurance and Risk Finance Facility is working on the deployment of insurance and risk-finance solutions in Argentina, Colombia, and Mexico and has initiated its supports to Antigua and Barbuda, Colombia, Dominica, Guatemala, Trinidad, and Tobago, and Peru.
  • Business networks in Haiti and Mexico support the private sector with crisis response through the Connecting Business Initiative.

[1] Barbados, Colombia, Cuba, Ecuador, Grenada, Guatemala, Haiti, Jamaica, Mexico, Suriname, Uruguay, Saint Vincent, and the Grenadines.

[2] Argentina, Barbados, Colombia, Cuba, Ecuador, Grenada, Haiti, Honduras, Mexico, and Saint Vincent and the Grenadines.

[3] Colombia (2 programmes), Costa Rica (2 programmes), Honduras, Jamaica (3 programmes), and Peru.