To achieve compliance with the Sustainable Development Goals – SDGs and the Paris Agreement, it is necessary to direct capital flows toward investments that contribute to sustainable and low-carbon economic development.

In this sense, it was thought to develop taxonomies of sustainable finance conceived as a tool that proposes definitions to identify assets, activities, or projects aligned with these objectives, thus encouraging the channelling of financial resources toward their development.

This is how several countries in the world have been developing their own taxonomy at the national level and Latin America was no exception to this process.  

However, the lack of comparability between national taxonomies began to create barriers to trade and international capital flows toward sustainable projects.

In order to accelerate progress towards unification, the European Union, through the EUROCLIMA Programme, financed the project for the development of the Common Framework of Taxonomies of Latin America and the Caribbean, the result of which is a document that brings together the set of guiding principles that serve as a voluntary reference and guidance for those countries in the region that are in the process,  or intend to develop taxonomies of sustainable finance. This aims to facilitate cross-border capital flows for sustainable investments in the region.

On July 10th, 2023, from Panama, the technical report of the Common Taxonomy Framework of Latin America and the Caribbean was launched: the English version is now available and the publication of the guide in Spanish was announced.