The new generation of Nationally Determined Contributions (NDCs) in Latin America and the Caribbean demonstrates significant progress in planning, transparency, and stakeholder participation. At the same time, it reveals a persistent gap between climate commitments and their implementation. The LEDSenLAC 2025 Report identifies both the enabling conditions already in place and the remaining gaps that must be addressed to translate these priorities into sustainable investment and economic transformation.

Latin America and the Caribbean now have more comprehensive, participatory, and technically robust climate policy instruments. However, the fifth edition of the LEDSenLAC Report, which analyzes the NDCs of 30 countries across the region, shows that the central challenge is no longer the formulation of climate commitments, but rather creating the conditions needed to implement them. As of January 2026, 22 countries had submitted updated NDCs and 21 had presented their first Biennial Transparency Report.

The most persistent challenge remains translating climate planning into economic decisions, financial instruments, and bankable projects. Only half of the countries analyzed have a climate finance strategy, while important gaps remain in cost estimation, project preparation, and alignment with sectoral policies and regulatory frameworks. In this context, NDCs can help guide public and private investment, but they are unlikely to fulfill that role unless they are translated into implementation roadmaps, financial instruments, and well-developed project pipelines.

The report also highlights concrete examples of countries beginning to close this gap. Brazil has developed instruments such as the Climate Fund and Eco Invest Brazil to promote climate investment. Colombia has strengthened the monitoring of emissions, mitigation and adaptation measures, and climate finance through its National Climate Change Information System. Peru has established a National Registry of Mitigation Actions that includes both public and private initiatives while advancing the development of its climate finance strategy. Mexico, meanwhile, has a range of legal and financial instruments in place but still faces the challenge of linking them more explicitly to the implementation of its NDC.

The country experiences analyzed demonstrate that there is no single pathway to mobilizing climate investment. However, all require a combination of national priorities, institutional capacity, regulatory signals, reliable information, and effective mechanisms for project preparation. They also require stronger coordination among public institutions, the private sector, and financial actors to ensure that NDCs are integrated into the decisions that shape infrastructure, production, and territorial development.

Within the framework of the Global Gateway strategy, this implementation gap represents an important opportunity to strengthen countries' capacities and improve the conditions needed to turn climate commitments into concrete investments. Beyond mobilizing financial resources, the approach supports institutional strengthening, project preparation, risk reduction, and stronger alignment between climate priorities and broader sustainable economic development strategies.

During the panel discussion following the presentation of the report, Carlos de Miguel, Director of the Sustainable Development and Human Settlements Division at ECLAC, emphasized that the next phase of climate action in the region requires moving from planning to the effective implementation of NDCs. He stressed that this will require stronger governance, clear economic and institutional signals, and the development of robust investment pipelines capable of accelerating productive transformation and climate-resilient development.

The panel also featured Sergio Rengifo, Executive Director of the Colombian Business Council for Sustainable Development, who highlighted the importance of strengthening collaboration between the public and private sectors to create the conditions needed to scale up climate investment and advance NDC implementation.

Access the report here: LEDSenLAC 2025 Report