Chile has become a proving ground for climate finance innovation, launching the first transaction to use monetized emissions reductions from early coal plant closure to lower the cost of capital for renewable energy. This landmark pilot, led by IDB Invest and energy utility Engie Energía Chile (EECL), demonstrates how a pay-for-success blended finance model can align corporate, national, and climate goals in emerging markets.

Chile Pilots New Model for Coal Exit with Carbon-Linked Finance. Chile is setting a precedent for emerging markets with a first-of-its-kind financial instrument that links early coal plant retirement to concessional borrowing costs. In partnership with IDB Invest and Engie, the country closed two coal plants nearly two years ahead of schedule, replacing them with a 151MW wind farm in Calama, and creating a blueprint for future transition finance.

Latin America’s largest investment bank, BTG Pactual, is making a bold push to become a global commodities powerhouse, positioning Brazil as a central pillar of global food security. Chairman André Esteves believes Brazil could supply 80% of the world’s additional food demand over the next two decades, and he wants BTG to be at the heart of that transformation.

Latest Economic Projections for Latin America: IMF vs. World Bank. IMF ProjectionsThe IMF now forecasts GDP growth in Latin America and the Caribbean will slow to 2.0% in 2025, down from 2.4% in 2024 and below its January forecast of 2.5%.The main reason for this downgrade is a projected contraction in Mexico’s economy, which

Despite commanding some of the world’s largest reserves of oil, gas, lithium, and copper, Latin America’s sovereign wealth funds (SWFs) remain small, traditional, and underleveraged. While Africa and Asia have embraced sovereign funds as engines of growth and innovation, Latin America's 12 SWFs are overwhelmingly stabilization funds, designed to smooth fiscal shocks but not to invest in the future.

Episode 2: Turning Challenges Into Opportunities | Paraguay: The Hidden Gem of Latin America. While Episode 1 looked at Paraguay’s economic foundations, Episode 2 explores what lies ahead. What makes this country’s future so promising, and why should the world take notice?

Navigating Change: Regional Opportunities in an Uncertain World. After years of turbulence, Latin America entered 2025 with a rare macroeconomic opportunity: growth has stabilized, inflation is down, and public debt is leveling off. But with global risks rising and productivity still weak, the question is whether this calm can be turned into something more lasting.

Latin America and the Caribbean entered 2025 with an unusual advantage: macroeconomic fundamentals are broadly under control. Inflation has eased, interest rates are stabilizing, and unemployment is at its lowest point in over a decade. Yet behind this façade of calm lies a deeper problem, low productivity, high labor informality, and underwhelming

The Role of Sovereign Wealth Funds in Latin America. Despite having some of the world’s most valuable natural resources, Latin America has lagged in using sovereign wealth funds as a tool for long-term development and stability. Unlike Africa and Southeast Asia, where sovereign vehicles are being used to catalyze growth and attract FDI.