Distributional implications of climate change and policy recommendations for an inclusive, just and sustainable transition

Inequality, both among and within countries, is a significant barrier to transitioning to low-carbon, climate-resilient economies. This is especially true in regions like Latin America and the Caribbean, where high levels of structural inequality persist. The multiple dimensions of inequality include differences in carbon footprints and varying vulnerabilities to climate impacts. Developing nations are disproportionately affected by climate change because of their reduced capacity to cope with its impacts owing to their economic structures, poor access to basic services and geography. A mix of policies is required to manage climate change risk, including productive development, trade, fiscal and social policies, which should aim to enhance socioeconomic benefits while mitigating harmful effects. Climate change exacerbates existing inequalities, and vulnerable groups are more exposed to climate risks and have fewer means to adapt. Therefore, managing climate risks and ensuring a just, equitable transition are crucial for addressing the development gap and achieving sustainable growth. This document is the ECLAC contribution to the G20 Framework Working Group.