Hosted by the Council of Ministers of Finance of Central America (COSEFIN) and co-organized with the Economic Commission for Latin America and the Caribbean (ECLAC) and C3A, this workshop provided finance ministries with invaluable resources to better understand and mitigate the impacts of climate change. These tools represent a powerful combination of climate modeling and financial strategy, designed to guide the region's economic policies toward sustainable development.
The ClimRisk model, developed by researchers from the National Autonomous University of Mexico, was a highlight of the event. This integrated assessment tool is a window into the future, projecting scenarios of temperature increases, shifts in precipitation patterns, and biodiversity loss extending to 2100. The model goes further by quantifying the economic costs associated with these changes across a wide range of damage functions. By offering a comprehensive view of potential long-term impacts, ClimRisk equips governments with the insights needed to anticipate and plan for a climate-altered future.
In tandem with ClimRisk, C3A presented the Financial Sector Mitigation and Adaptation Tool (FSMAT). This tool, built in collaboration with the French Development Agency (AFD) allows policymakers to test different combinations of green financing instruments, evaluating their effects on decarbonization pathways and key macro-financial indicators. By providing a clear view of how various financial strategies could impact national economies, FSMAT empowers finance ministries to design informed, effective climate-related financing strategies.
The workshop yielded promising outcomes, with a visible move towards a growing commitment among Central American countries to integrate climate considerations into their economic planning processes. Additionally, COSEFIN's interest in a more comprehensive capacity-building program focused on FSMAT underscores the region's dedication to strengthening its ability to combat climate change and master the impacts of different financing options.

As Central America and the Caribbeans face increasingly severe climate challenges, the tools introduced at this workshop represent a crucial step forward. By equipping finance ministries with robust analytical models, C3A and its partners are fostering a future where economic growth and climate resilience go hand in hand. The collaboration forged at this event not only strengthens regional cooperation but also sets the stage for a more sustainable and prosperous future for the region.