News Americas, LONDON, England, Weds. July 19, 2023: In a significant move to strengthen ties with Caribbean and Latin American leader, EU leaders in Brussels have unveiled a €45bn investment package aimed at fostering sustainable development and accelerating the transition to clean energy.
The investment announcement came at the EU-CELAC summit, the first of its kind since 2015,which aimed to bring the EU closer to Latin American and Caribbean countries. Disagreements over how to refer to the war in Ukraine in the final text soured negotiations but the investment encompasses critical projects in various sectors, including the extraction of essential minerals, electrification of bus fleets, healthcare advancements, telecommunications, and conservation efforts for the Amazon rainforest in Brazil.
Emphasizing the importance of responsible investment, European Commission President Ursula von der Leyen stressed the need for high environmental and social standards.
While discussions surrounding a trade deal with Mercosur yielded minimal progress, EU leaders expressed their commitment to concluding the agreement this year. The EU’s cautious approach to ratifying the trade deal is rooted in concerns over protecting the Amazon rainforest and upholding environmental standards. By fostering trade and collaboration, the EU aims to advance its climate goals, with a particular focus on leveraging Latin America’s potential in hydrogen production and critical raw materials essential for the energy transition.
This investment endeavor signifies a strategic shift in EU rhetoric, promoting sustainable practices and local capacity-building rather than mere raw material extraction. The EU’s strengthened ties with Caribbean and Latin America serves to diversify supply chains, reduce reliance on single sources, and facilitate a mutually beneficial partnership for economic growth and environmental stewardship.
