CEPAL News. May 2025

Vol. XLV– No.05 – May 2025 New ECLAC Washington Publication Unleashing sustainable growth: financing green productive development policies in Latin America and the Caribbean Financing the transition to a green economy in Latin America and the Caribbean demands innovative approaches to address the region's significant investment gap, estimated at 7%–11% of GDP annually by 2050. This publication focuses on the financial strategies underpinning green productive development policies, which make up a transformative and comprehensive framework that integrates economic goals with environmental sustainability. Key insights include strategies to reallocate subsidies, lower capital costs and foster private sector investment through blended finance and institutional capital. Innovative tools like green, social and sustainability-linked bonds have emerged as pivotal instruments to channel investments into priority areas and must be enhanced. However, in order to scale up sustainable financing, systemic barriers such as underdeveloped financial markets, regulatory inefficiencies and macroeconomic instability must be addressed. This report also emphasizes the role of robust governance and regional collaboration in optimizing resource allocation, and offers actionable recommendations that provide policymakers and stakeholders with a financial road map to harness green productive development policies as a catalyst for sustainable, inclusive and resilient growth in the region. Download publication Regional Blue Talk Latin America and the Caribbean on the road to the third United Nations Ocean Conference 2025 Latin America and the Caribbean is home to 47 of the world's 258 marine ecoregions, and the vast majority of our countries (23) have more marine territory than land area. On average, 50% of the region's territory corresponds to the ocean. In the Caribbean islands, this proportion rises to 91% and is nearly 99% in some States such as Barbados and Antigua and Barbuda. That is why the region is positioned as a crucial strategic actor in the marine life agenda and why it has a historic opportunity to build a sustainable, just and inclusive marine economy. This was according to the participants in a virtual event entitled Regional Blue Talk: Latin America and the Caribbean On the Road to the Third United Nations Ocean Conference 2025 (UNOC3), which took place on May 13, organized by ECLAC and the Embassies of Costa Rica and France in Chile. The event's objective was to offer a platform for dialogue in preparation for the UNOC3 where experts, government representatives and key stakeholders could identify regional and subregional priorities, specificities and challenges, share experiences, and formulate recommendations that would contribute to building a shared regional perspective on this issue. Press release Video of the meeting's live transmission New ECLAC Washington Report Capital flows to Latin America and the Caribbean: 2024 year-in-review and early 2025 developments Latin American and Caribbean bond issuance in international markets amounted to US$ 121.8 billion in 2024, 36% higher than in 2023 and the strongest figure in three years. The average coupon rate, at 7.1%, was slightly above the 2023 level of 6.9%, indicating that financing costs remain elevated. Although the market was still open to high-yield issuers, investment grade bonds accounted for 57% of the region's issuance. In 2024, issuance of green, social, sustainability and sustainability-linked (GSSS) bonds on international markets climbed by 6% relative to 2023, to a total of US$ 33.1 billion. Although this was the largest volume recorded since 2021, these bonds represented 27% of the total for the region in 2024, significantly lower than the record 35% share in 2023. In the first quarter of 2025, despite increased uncertainty, Latin American and Caribbean bonds were issued in international markets at a rapid pace, reflecting a quarterly record of US$ 52.2 billion and surpassing the previous peak reached in the first quarter of 2021. Capital flows to Latin America and the Caribbean reports are published twice a year by the ECLAC's office in Washington, D.C. and provide an overview of the region's financial conditions and latest trends in bonds issued in international markets, credit ratings, bond spreads and equity prices. Main developments in 6 charts Download full report For more information please contact us via email at cepalnews.eclacwash@cepal.org 1825 K Street NW   |   Suite 1120   |   Washington DC 2006   |   (202) 596-3713 The  CEPAL news  is published by the Washington Office Copyright © 2025 Economic Commission for Latin America and the Caribbean (ECLAC). All rights reserved.