This report published by the European Think Tanks Group (ETTG) following the July 2023 EU-LAC Summit organised in Brussels under Spanish Presidency of the EU aims at contributing to the debate on EU-LAC (Latin America and the Caribbean) relations in the particular domains of finance for development, climate change and energy transition, and inequalities. Our aim is a deeper understanding of the current state of the LAC region and of bi-regional relations on each of these three fronts, thereby enabling the proposal of a concrete set of recommendations for a reshaped bi-regional relation, in line with the political commitments adopted in recent months as well as the development challenges of the region.

IDDRI contributed to this report with a chapter on "EU-LAC cooperation on climate change and energy transitions".

Read the report online

Key Messages

This collective report looks into the shared priorities of Europe, Latin America and the Caribbean, including green, digital, and social transitions. It emphasises the need for increased financial support for Latin America and the Caribbean, specifically looking beyond traditional aid models. The report proposes a “beyond-aid” approach that leverages various tools. This includes:

▫️ Strengthened financial instruments: Providing greater access to loans and investments.

▫️ Political dialogue and technical assistance: Facilitating knowledge exchange and capacity building.

▫️ Collaboration in key areas: Addressing shared challenges like reforming multilateral development banks, managing debt, and implementing tax reforms.

The report also identifies opportunities for collaboration in tackling climate change and promoting social inclusion.

▫️ EU-LAC cooperation can focus on mapping existing initiatives, assessing the impact of energy transitions, and mobilising resources.

▫️ Building a robust social protection system is crucial for addressing inequality and strengthening the social contract in Latin America and the Caribbean.