This report attempts to address two questions related to the threat of climate challenge in Latin America and the Caribbean (LAC). First, which key physical impacts and consequences will most affect the region, what will these effects cost regional economies, and what adaptation measures may minimize these adverse impacts? Second, how and at what cost will the region be able to reduce its contribution to the global carbon footprint at a level consistent with climate stabilization goals? Chapter 1 provides an overview of the key physical impacts and associated costs of climate change, and identifies adaptation responses. Credible pathways to reaching the 2050 goal in LAC and their associated costs are the central subjects of chapter 2. Chapter 3 reviews the cobenefits expected from adaptation and mitigation efforts.