He Ministry of Economy and Finance (MEF) announced that the government reached an unprecedented loan with the world Bank (WB), through which the multilateral organization will reward with a reduction in interest rate the fulfillment of climate objectives foreseen in the Paris Agreement.
This is a repeated request from the minister Azucena Arbeleche, for which only the approval of the directory of the WB during the next month. The potential savings for Uruguay It is up to 12.5 million dollars, within the framework of the first agreement of this type between a country and the multilateral organization.
As indicated from the MEF, The loan includes a financial mechanism that enables a discount in the interest rate if the objectives of reducing the intensity of the debts are exceeded by 1%. methane emissions Produced by meat vaccine.
Regarding the 12.5 million dollars that the country could save, the portfolio that leads Arbeleche indicated that “there is the possibility that this amount could increase with the contribution of resources from developed countries, in the event that Uruguay reach the 2030 goal early.”
Arbeleche described the agreement as “another innovative step”
When referring to the approval of the instrument, Arbeleche considered that “it is another innovative step by the country in the search for better conditions of access to international financing,” while highlighting that “it seeks to enhance the positioning of Uruguay in the markets of agricultural export, that increasingly value sustainable production.”
In this regard, the minister maintained that the indicators included in the loan and in the Environmental Bonus issued in 2022 demonstrate “the determination and ambition to follow a development path that combines greater growth and productivity in the livestock sector, an integral part of the country’s economic structure, with a commitment to non-deforestation of the native forest.”
Mattos considered that “it is a very important signal”
For his part, the minister of Livestock, Agriculture and Fishing, Fernando Mattos, He highlighted that “advancing economic and financial tools that reward and promote the adoption of technologies in livestock farming is a very important signal for and for producers throughout the country.”
About, Mattos He highlighted that “empirical evidence strengthens the slogan that improved efficiency in the use of natural resources brings greater economic, social and environmental sustainability.”
Along the same lines, he valued that “the historical commitment to sustainability and the policy of reducing emissions of emissions is reaffirmed.” greenhouse gases, innovating through a financing instrument supported by the World Bank”.
Finally, the minister of Environment, Robert Bouvier, He described the advance as “great news” and highlighted: “It is a tool that recognizes and rewards what we do well. We are advancing towards another milestone that links environmental, economic and productive policy because it integrates the visions of the three portfolios with public policies in a synergistic manner.”
Source: Ambito
