FOREWORD

The purpose of this document is to contribute to the ongoing discussion on climate change in light of the available evidence on the possible channels of transmission of the econnomic impact of this phenomenon and the results of the latest session of the Conference of the Parties to the United Nations Framework Convention on Climate Change (COP 15), held in Copenhagen from 7 to 18 December 2009.

More effective multilateral modalities must be found for halting global warming, starting with an agreement that recognizes the interdependence of nations, of public, private and social actors, and of generations and that takes account of the different role played by each one in the creation of the problem.

Institutional and financial proposals for addressing the issue must be grounded in the principle of common but differentiated responsibilities and give due consideration to development priorities within a fairer system of global governance.

The region now faces an opportunity to participate actively in the international negotiations and the preparation of the ensuing agreements (including the financial ones), to consider production alternatives that enhance competitiveness within the pursuit of low-carbon economic development, to adjust or take advantage of the economic incentives offered under the current climate regime, and at the same time become part of a collective solution to a global problem.

The Conference of the Parties will next meet in Mexico, from 29 November to 10 December 2010. That session will be a unique occasion for the countries of the region to increase their presence on the international stage, to show the world the progress made, for all their diversity, as well as the directions being taken and the novel approaches being adopted to tackle climate change.

The region is in a position to embark on a novel preparatory process for COP 16 and COP 17 and to foster a positive approach by focusing on building trust and ensuring the inclusiveness of the process leading up to the adoption of a binding agreement.

This document has been prepared, at the request of the Government of Mexico, by the Economic Commission for Latin America and the Caribbean and the Inter-American Development Bank on the basis of the work carried out jointly with a number of countries of the region to further the analysis of the economic costs of climate change and with support from the European Union and the Governments of Denmark, Germany, Spain and the United Kingdom.

It is our hope that the reflections presented here for the consideration of the Member States help contribute to the ongoing debate.