The environmental and economic benefits for the European Union of strengthening co-operation with the Latin American region in the field of environment

Environment is receiving increased attention in the EU cooperation agenda, also in light of the EU’s objective of reducing its global environmental footprint. In this context, the main purpose of this study is to ascertain the economic and environmental benefits which could accrue to the EU from strengthening co-operation with Latin America in the field of environment. Based on an analysis of the main drivers of demand of environmental goods and services (EGS) and market conditions (including barriers to trade and investment), as well as on the creation of market development scenarios, the study shows that increased co-operation with Latin America can offer significant business opportunities for EU companies operating in the environmental market, particularly in the water and waste management sectors. Case studies for different countries (Mexico, Chile, Brazil and Colombia) assess opportunities in different segments. The study also highlights the scope for reduction of the EU environmental footprint linked to the consumption of commodities imported from Latin America. Finally, the study identifies pragmatic policy recommendations, highlighting the need to make efforts to reduce barriers to trade and investment in EGS, improving knowledge base of EU business and reducing EU’s environmental footprint.