Climate Change Risk Management Options for the Energy Sector

The Latin America and Caribbean (LAC) region has a long history of coping with natural hazards such as hurricanes, floods, and coastal storm surges. However, climate change is expected to exacerbate the threat of natural hazards and pose new ones. As a result of climate change, average temperatures and sea levels are known to be rising, precipitation patterns might change, and hurricanes could intensify. Many of these changes are already occurring, and they are projected to become more severe in the future. This factsheet identifies climate change risks and risk management options that can be incorporated into IDB-investments for the energy sector, including how the option addresses hazards, relative costs and feasibility of implementing a given option.