The arrival of **[Donald Trump to the U.S. presidency](https://noticiasambientales.com/medio-ambiente/elecciones-en-estados-unidos-el-impacto-ambiental-del-triunfo-de-donald-trump-en-5-puntos/)** could be affecting sustainable investments in Latin America, in a context of increasing political and economic uncertainty. Although the international market recognizes **the importance of these projects to combat climate change**, investors will be more cautious when allocating capital to environmental protection and regeneration companies, analysts warn.
**Decarbonization and conservation**, key factors for the region, could be impacted by the reduction in investment flows. “Trump is more inclined towards fossil fuels than clean energy, which has diminished the appeal of sustainable investment,” explains Esteban Polidura from Julius Baer.
At the governmental level, the main countries in the region **will issue debt to cover fiscal deficits**, but without a priority on the green agenda. Additionally, Trump, who withdrew the U.S. from the Paris Agreement, will focus his policy on trade and migration, leaving climate change on the back burner.
On a corporate level, market volatility **will limit new sustainable strategies**. “Companies will be more cautious in issuing debt until political uncertainty dissipates,” notes an analysis by América Futura.
## Clean Energy in Decline
Despite the **growth of renewable energy infrastructure in the region**, this sector faces a decline in expectations. This is due to the **20% decrease in clean energy companies** in the last year, reflecting the shift towards fossil fuels in developed countries and the increasing energy demand from artificial intelligence.
However, the price drop could create opportunities for investors with a long-term vision in sectors such as **water conservation and decarbonized energy**.
## An Evolving Market
The Republican stance against corporate social responsibility has affected sustainable investment strategies, according to *Mirova Global Sustainable Equity*. Nevertheless, the firm foresees a dynamic future for this market, driven by investor maturity and the **growing need for climate solutions**.
“The green bond market will continue to grow, with banks and industrial companies issuing at least 60% of the volume by 2025,” projects Bertrand Rocher, an analyst at Mirova. Despite political uncertainty, **the environmental crisis remains an unavoidable challenge for investors, companies, and governments**.
## **[What does the Paris Agreement imply?](https://noticiasambientales.com/medio-ambiente/cuando-sera-efectiva-la-salida-de-estados-unidos-del-acuerdo-de-paris/)**
The Paris Agreement is an international treaty that seeks to **limit global warming and adapt to its effects**. It was adopted in 2015 and entered into force in 2016.
The agreement states that **countries must reduce their greenhouse gas emissions as soon as possible**. The goal is to keep the global temperature increase below 1.5°C compared to pre-industrial levels.
The Paris Agreement has the following objectives:
– **Reduce greenhouse gas emissions**
– **Adapt to the effects of climate change**
– **Assist developing countries in adapting and mitigating climate change**
– **Create a transparency framework to report on countries’ climate objectives**
The agreement is based on **the use of available science** to achieve an economic and social transformation that is friendly to the planet.
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