9th August 2023

Central & South America

European Union to increase LATAM Investment

The European Union has announced an investment of €45 billion (£39 billion) in Latin America and the Caribbean. This investment aims to support projects that promote clean energy adoption, protect the Amazon rainforest, and contribute to various sectors, including critical minerals extraction, electrification of bus fleets, healthcare, and telecommunications.

The EU-Celac summit marked a significant step in bringing the European Union closer to its Latin American and Caribbean counterparts. 

The investment package includes funding from the private sector and emphasizes the importance of high environmental and social standards. Projects in Brazil, specifically aimed at protecting the Amazon rainforest, are crucial considering the environmental concerns and destruction observed in recent years.

The EU remains committed to fostering trade with Latin America as it seeks to achieve its climate goals and access critical raw materials, such as lithium, needed for the energy transition.

The summit also highlighted the potential for hydrogen production in the region, which can aid in cleaner industries like steel-making and shipping. Additionally, the EU expressed interest in partnering with Latin America to build local capacity for processing raw materials and manufacturing electric vehicles.

The declaration from the summit emphasized the importance of funding to address climate change challenges, support economies transitioning to clean energy, and help vulnerable nations cope with extreme weather events. Rich countries committed to providing $100 billion annually in climate finance to poorer nations, a promise that had not been fully realized by 2020, and pledged to double the finance for climate change adaptation by 2025.

Overall, the EU-Celac summit aimed to strengthen ties between the EU and Latin American and Caribbean countries while addressing critical environmental and economic issues.