This edition of the Report on Economic Development (RED) examines the challenges and opportunities that climate action and the protection of ecosystems and biodiversity pose for Latin America and the Caribbean. The report emphasizes three key messages relevant to all countries: the importance of adaptation, the need to contribute to global mitigation efforts, and the urgency of preserving natural capital as a key factor in the development process. It also highlights that policies to address these challenges may vary depending on each country’s resource diversity and risks, with potential trade-offs between conflicting objectives and opportunities for synergies that must be harnessed. This document seeks to contribute to the debate about the best public policy alternatives to promote productive economies with low carbon emissions, greater social inclusion, and sustainable use of natural resources. The financing needs to meet development, climate, and biodiversity preservation goals are overwhelming. Therefore, CAF – Development Bank of Latin America and the Caribbean has committed to increasing green financing to 40% of its approvals by 2026 and to being one of the most active institutions in the region in mobilizing resources from major green funds and international partners.