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Social Protection and Climate Change: How Can We Protect the Most Vulnerable Households Against New Climate Threats?

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The purpose of this paper is to identify the main challenges to poverty reduction in the Latin America and the Caribbean (LAC)region due to climate change, and the potential role of social protection in this context. This paper focuses on the role of non-contributive cash transfers to support poor and vulnerable households exposed to new climate threats. It also examines the potential role of contributive social protection instruments, such as unemployment benefits and pensions, especially to compensate for the adverse effects of decarbonization measures.

Key policy recommendations include:

Strengthen social protection contributions in the face of increased intensity and frequency of extreme weather events and disasters

Ensure adequate budget levels to implement regular cash transfer programs.

Strengthen social protection contributions against the degradation of ecosystems and natural capital

Pilot and evaluate innovative social protection interventions with the dual objective of reducing poverty and contributing to environmental restoration.

Strengthen social protection contributions against the adverse effects of measures to decarbonize economies

Strengthen participation of social protection stakeholders in defining fair transition strategies, along with the ministries of economy and finances, ministries of labor and other stakeholders