Abstract
Uruguay has been at the forefront of the design of economic policies to address climate change, achieving in the last decades a substantial reduction in its greenhouse gas emissions intensity without endangering its economic development. Climate-smart practices for its agricultural sector have allowed the country to address food security, human health, competitiveness in external markets as well as environmental sustainability. Having already achieved the greening of its electricity generation, a further decarbonization of the economy could rely on envisaged electric mobility initiatives as well as on green hydrogen prospects. As Uruguay’s exposure to extreme climate events has been increasing, current adaption efforts would need to be intensified to advance a climate-resilient economy. Drawing on multilateral development banks’ innovative financing instruments to support environmental outcomes could help mobilizing budgetary resources and scaling up private climate finance.
Embracing Climate Change Challenges1
Uruguay has been at the forefront of the design of economic policies to address climate change, achieving in the last decades a substantial reduction in its greenhouse gas emissions intensity without endangering its economic development. Climate-smart practices for its agricultural sector have allowed the country to address food security, human health, competitiveness in external markets as well as environmental sustainability. Having already achieved the greening of its electricity generation, a further decarbonization of the economy could rely on envisaged electric mobility initiatives as well as on green hydrogen prospects. As Uruguay’s exposure to extreme climate events has been increasing, current adaption efforts would need to be intensified to advance a climate-resilient economy. Drawing on multilateral development banks’ innovative financing instruments to support environmental outcomes could help mobilizing budgetary resources and scaling up private climate finance.
A. Background and Recent Developments
1. Uruguay is a low producer of global greenhouse gas (GHG) emissions but is vulnerable to climate change. Because of its small size and the relatively low level of industrialization, the contribution of Uruguay to the generation of global warming represents only 0.03 percent of the global anthropogenic GHG emissions.2 However, Uruguay’s economy is primarily based on the use of natural resources, exposing its agro-industrial and tourism sectors to the effects of climate change and climate variability. Over the last decades, climate events (mainly floods and droughts) have impacted crop yields and cattle farming productivity, materializing in output losses, with spillovers to the rest of the economy. Floods and droughts are becoming more frequent and intense, while 70 percent of the population lives in coastal areas exposed to rising sea levels.3
Climate Events: Agriculture Losses (1978-2019)
(percent of baseline scenario output)
Citation: IMF Staff Country Reports 2023, 179; 10.5089/9798400244346.002.A003
Source: NAP Agriculture; MGAP; IMF staff calculations.Note: size of the bubble represents the share in agriculture output, also included in labels.Climate Events: Agriculture Losses (1978-2019)
(percent of baseline scenario output)
Citation: IMF Staff Country Reports 2023, 179; 10.5089/9798400244346.002.A003
Source: NAP Agriculture; MGAP; IMF staff calculations.Note: size of the bubble represents the share in agriculture output, also included in labels.Climate Events: Agriculture Losses (1978-2019)
(percent of baseline scenario output)
Citation: IMF Staff Country Reports 2023, 179; 10.5089/9798400244346.002.A003
Source: NAP Agriculture; MGAP; IMF staff calculations.Note: size of the bubble represents the share in agriculture output, also included in labels.2. Uruguay has achieved a substantial reduction in its GHG emissions intensity without endangering its food security and economic development. During the 1990-2019 period, net emissions increased by 8.6 percent, but the economy more than doubled its size, thereby cutting by almost half its emissions intensity. This result, which stands out from Uruguay’s main export competitors, has been underpinned by a gradual decarbonization of its energy supply, as renewable sources account currently for almost 60 percent of the total supply.4 According to Uruguay’s latest National Greenhouse Gas Inventory, total GHG emissions reached 31 million metric tons of CO2 equivalent (MtCO2e), comprised mainly of methane (51% of the total), nitrous oxide (26%) and carbon dioxide (22%) in 2019. Biogenic methane emissions generated by agricultural activities accounted for almost 93 percent of total methane emissions. Land Use, Land Use Change and Forestry (LULUCF) in Uruguay operates as a carbon sink rather than a contributor, absorbing in net terms 11.5 MtCO2 (29.6 MtCo2 emitted and 41.0 MtCO2 absorbed). Taking into account LULUCF contributions, net emissions hovered around 19 MtCO2e.
3. Uruguay is at the forefront of the design of economic policies to address climate change. Balancing economic development with transforming the economy into a more climate-resilient, green, and sustainable one has become a national priority. The country’s strong political commitment to integrate climate change into the different areas of public policy has contributed to the necessary institutional, regulatory and management framework for environmental governance and the protection of natural resources. Framed on its National Policy on Climate Change, Uruguay has already submitted two Nationally Determined Contributions to the Paris Agreement. Consistent with the Helsinki Principles, the 2020-24 National Budget Law mandated that climate targets be integrated in the planning and design of economic policies and public finances. Together with the creation of the Ministry of Environment, the Coordination Group of the National Climate Change Response System has been instrumental for an effective interministerial collaboration and for mainstreaming the climate agenda across sectors and the subnational administrations.5 Over the past decades, in collaboration with its development partners, Uruguay has developed and tested innovative financial instruments to address climate change, with significative knowledge spillovers at regional and global scale.6 Within its country partnership framework with the World Bank, a pilot for a new financing instrument that supports commitments to climate change is being considered.
4. Uruguay has also demonstrated its ability to innovate in the climate finance area with the issuance of its pioneering sustainability-liked bond (SSLB). To overcome the hurdles that limit the mobilization and increase the cost of resources to deliver environmental outcomes, Uruguay in its role of Chair of the WB/IMF Development Committee has advocated for innovative sovereign lending instruments that link financial conditions to a country’s performance against climate change commitments. In October 2022, the country made great strides by issuing the first bond to include a two-way coupon-step structure: a step-down if it overperforms on pre-defined key performance indicators (KPIs) or a step-up in case of failure to meet targets. The bond issuance attracted more than 180 investors from Europe, Asia, the United States, and Latin America, and helped broaden the investor base since 21 percent were new holders of Uruguayan debt. The targets contemplated by Uruguay’s bonds, aligned with its first NDC, include achieving a reduction in aggregate greenhouse gas emissions, expressed in CO2 equivalent per real GDP unit, by 2025 compared to 1990 and maintaining or increasing the native forest area covering Uruguay’s territory by 2025 compared to 2012. To enhance transparency, the United Nations Development Program will provide an external and independent review on both KPIs.
B. Emissions Targets and Outlook
5. Uruguay set ambitious targets in its first Nationally Determined Contribution (NDC), pledging to cut in half its GHG emissions intensity by 2025.7 As per the first NDC submitted to the United Nations Framework Convention on Climate Change in 2017, the country committed to a 24 percent reduction in carbon dioxide emissions intensity per GDP unit, a 48 percent reduction in nitrous oxide emissions intensity and a 57 percent reduction in methane emissions intensity while maintaining 100 percent of managed planted forests and native forests by 2025. Uruguay also included 2025 agriculture specific NDC commitments such as, reducing the methane emission intensity (per kg of beef live weight) by 32 percent and the nitrous oxide emission intensity by 34 percent with respect to their 1990 reference levels. As per the 2019 GHG emissions inventory, the country appears to be on track to reach its targets in 2025, with progress regularly reported in the NDC progress tracker.8 Through these commitments, Uruguay is pursuing the goal of becoming one of the world’s leading low-emissions food producers, highlighting the importance of environmentally responsible processes and practices in agricultural value chains.
6. The authorities have reaffirmed their commitments with the publication of a second NDC and a Long-Term Climate Strategy (2021) with an aspirational carbon dioxide neutrality target by 2050. Uruguay’s second NDC (NDC2) builds up on its initial targets for 2025 and sets additional targets for year 2030, guaranteeing the continuity in the reduction of methane and nitrous oxide emissions intensity associated with cattle farming, the country’s main source of emissions. The NDC2 also gives prominence to the country’s adaptation priorities, which include strengthening climate information systems, promoting new instruments to finance capital expenditure, and integrating the climate change perspective into public planning and regulation, among others. Uruguay’s long-term vision is framed in a strategy for a low-emission and climate-resilient economic development, which focuses on enhancing the country’s adaptation capacities and decreasing emissions intensity without endangering food production. The gradual decarbonization of the economy jointly with increased forest carbon sequestration would lead to an aspirational CO2 neutrality by 2050. The issuance of the SSLB showcases the authorities’ commitment with the integration of climate and economic policies and with their contributions to global public goods.
Cattle Farming: Emissions Intensity Reduction
(in percent with respect to 1990 levels)
Citation: IMF Staff Country Reports 2023, 179; 10.5089/9798400244346.002.A003
Source: Ministry of Environment.Cattle Farming: Emissions Intensity Reduction
(in percent with respect to 1990 levels)
Citation: IMF Staff Country Reports 2023, 179; 10.5089/9798400244346.002.A003
Source: Ministry of Environment.Cattle Farming: Emissions Intensity Reduction
(in percent with respect to 1990 levels)
Citation: IMF Staff Country Reports 2023, 179; 10.5089/9798400244346.002.A003
Source: Ministry of Environment.C. Policies Supporting Climate Change Adaptation
7. Uruguay’s exposure to extreme climate events has been increasing, causing substantial economic losses. The authorities estimate average direct and indirect losses from droughts at 383 million and 1.2 billion dollars, respectively, or a total of 2.5 percent of GDP.9 Rain and floods are also becoming more frequent and intense, forcing vulnerable groups to relocate (3 percent of the population in 2015-19) and impacting livelihoods. Uruguayan agricultural and fishery sectors are increasingly exposed to hydro-meteorological events impacting on crop yields and food production more broadly. Since 1902, the sea level near Montevideo has risen 11 centimeters (cm), of which 2-3 cm increases happened during the last three decades. The results of a climate risk analysis undertaken during the latest FSAP show that extreme coastal flood hazards (i.e. a 2-meter coastal flood) will become more likely and more severe, impacting the populations and threatening the viability of economic activities in Colonia, Canelones, Maldonado, Montevideo, Rocha and San José departments.10 Recurrent responses to climate shocks have been putting pressure on fiscal space while the materialization of climate physical risks could also pose macro-financial risks, increasing the share of firms and households at risk of default and impacting banks’ portfolio quality.
8. Against this backdrop, adaptation to climate change has become a national priority. In its Adaptation Communications submitted to the UNFCCC, Uruguay has defined specific adaptation contributions, gearing its efforts towards the Global Goal on Adaptation under the Paris Agreement of increasing adaptation capacity, strengthening resilience, and reducing vulnerability. Uruguay has focused its adaptation planning strategy on sectors that, due to their heightened climate vulnerability and economic preponderance, require urgent action. Three National Adaptation Plans (NAPs) have already been prepared and are in course of implementation:11
NAP-Agriculture aims at improving the livelihoods of rural populations through the adoption of sustainable animal and plant production systems that are less vulnerable to the impacts of climate variability and change. Short-term measures include research and development, technology transfer, information systems, climate insurances, resilient infrastructure, promotion of good farming practices (i.e. watershed and soil management), strengthening farmer’s networks, among others. Agricultural adaptation creates co-benefits in terms of mitigation, allowing for increase in productivity and reduction in GHG emissions intensity.
NAP-Cities aims at reducing the vulnerability of communities by incorporating climate risks reduction into the planning for land use and infrastructure and by improving the management systems of public services to ensure continuity under emergency situations. Considering the country’s high urban density, it also promotes the adoption of technological solutions to improve buildings climate performance and the integration of urban planning with sustainable urban mobility. Strengthening institutional capacities at national, departmental and local levels is a key component to mainstream adaptive capacity and resilience and to facilitate its articulation into planned development actions.
NAP-Coastal Zones focuses in increasing the resilience of the Uruguayan coastal zone to average sea level rise and extreme events by incorporating hybrid solutions based on rigid engineering infrastructures together with innovative nature-based solutions to preserve public and private assets. It also promotes the generation of high-resolution databases for monitoring impacts and mapping hazards, vulnerability and risks.
9. Uruguay has made great strides in enhancing its disaster risk preparedness and management. Consistent with the Sendai Framework and articulated with its National Climate Change Policy, in 2020 the National Policy for Disaster and Emergency Integrated Risk Management was enacted with the aim of identifying risks, mainstreaming risk management across public policies and minimizing the impacts of disasters.12 Uruguay has also built considerable expertise in designing contingency mechanisms to mitigate the fiscal impact of disasters. In 2014, in order to reduce budgetary uncertainty and guarantee a reliable source of power to its citizens, the country pioneered a global first weather hedge with the World Bank, in which the state-owned electric company entered into an 18-month weather coverage agreement for 450 million dollars, with a payout triggered by the impact of droughts on hydropower water reservoirs and determined based on the severity of the drought and the oil price levels.13 The Central Bank of Uruguay, in its Sustainability Road Map, as well as in the country’s second NDC, has stated its objective to assess the incorporation climate risks into the financial sector regulations while increasing its data collection and exposure modelling capacity in coordination with relevant public agencies.14
D. Policies Supporting Climate Change Mitigation
10. Despite its low global emissions, Uruguay was an early adopter of decisive mitigation actions. As such, through structural transformations, the country’s economic development model has been shaped into a resilient and low-carbon one. The greening of the economy has also allowed Uruguay to benefit from strategic and competitive advantages, particularly for accessing markets that have toughened their environmental regulations.
11. Uruguay is leading the green energy charge in the region. Historically, the Uruguayan energy system was dependent on thermal and hydroelectric power generation, which left the country vulnerable to adverse weather conditions. Based on a strategic long-term policy (Energy Policy 2005-2030) and robust institutional framework, the country shifted its electricity generation matrix to renewable sources, attracting investments rounding US$8 billion during 2010-2016. By 2018, the country was able to generate over 98 percent of all its electricity from renewable sources, primarily wind and hydropower. Uruguay has become one of the world’s leading countries in wind energy production, along with Denmark, Ireland and Lithuania, with more than a third of its electricity coming from wind farms. As Uruguay generates a surplus of electricity, it has been able to export energy to Argentina and Brazil. It is estimated that the transition to renewable sources for electricity allowed the country to reduce its CO2 emissions in 10 million tonnes (2014-20). In 2021, Uruguay’s set the foundations for the next phase of decarbonization of its primary energy matrix, developing a National Green Hydrogen Strategy.
Green Electricity and Reduced CO2 emissions
(in millions of tonnes)
Citation: IMF Staff Country Reports 2023, 179; 10.5089/9798400244346.002.A003
Sources: Ministry of Environment, IMF staff calculations.Green Electricity and Reduced CO2 emissions
(in millions of tonnes)
Citation: IMF Staff Country Reports 2023, 179; 10.5089/9798400244346.002.A003
Sources: Ministry of Environment, IMF staff calculations.Green Electricity and Reduced CO2 emissions
(in millions of tonnes)
Citation: IMF Staff Country Reports 2023, 179; 10.5089/9798400244346.002.A003
Sources: Ministry of Environment, IMF staff calculations.12. The decarbonization of the transportation sector will constitute Uruguay’s second energy transformation target. Transport accounts for two thirds of the country’s oil consumption and is the largest carbon dioxide emitter, constituting 56 percent of total emissions of that gas. Given that the electricity matrix has been practically decarbonized, the authorities are considering electric mobility as the way forward. Since 2020, a pilot program for the electrification of public transportation (currently 32 buses) has been implemented by the government in the departments of Montevideo and Canelones. Despite their higher procurement costs, electric buses are attractive when electricity from renewable sources is available at low costs, as is the case in Uruguay, allowing for investment recovery in 4 to 8 years. Furthermore, as batteries are recharged at night, they contribute to reduce the unbalance of day to night demand, a major challenge when renewables increase their share in the energy mix. The increase in transport sector efficiency and the transition to battery-powered electric vehicles is being advanced as part of the Sustainable Urban Mobility Strategy.
13. Green hydrogen is an energy vector of great relevance in Uruguay for sectors (long-distance heavy transport, thermal energy, industrial energy, raw) where decarbonization through direct electrical energy is complex or costly. According to the recently launched Green Hydrogen Roadmap in Uruguay, by 2030, the country would be able to reach green hydrogen production costs between 1.2 and 1.5 USD/kgH2, for a scale above 500 MW. 15 These production costs would allow Uruguay to position itself competitively among net exporters such as Chile, Saudi Arabia, Oman, Namibia or Australia. Drawing on its expertise, Uruguay’s state oil and gas firm ANCAP is spearheading the country’s efforts to promote and operationalize the green hydrogen strategy. With a medium-term vision, ANCAP is preparing tender rounds to create a maritime hydrogen production hub powered by its significant offshore wind potential. Winning bidders will have up to 10 years to explore and assess the area’s potential, with the option of presenting afterwards a full development plan. In the short-term, ANCAP is seeking expressions of interest (early 2023) from firms to produce e-fuels, using carbon captured from biofuel subsidiary ALUR’s bioethanol plant.16 The availability of biogenic CO2 at constant rate and the possibility to leverage ANCAP’s logistics and midstream infrastructure would facilitate the jump-start of onshore green hydrogen projects.
14. As a supplement to Uruguay’s wide-ranging structural policies for mitigation, an explicit carbon tax entered into force. When putting in perspective the country’s share of CO2 emissions subject to positive carbon price and its commendable achievements in terms of reduction of the primary energy CO2 emissions intensity, it becomes apparent that Uruguay’s mitigation strategy has relied more on structural changes, which have been effective in decarbonizing the economy. Nonetheless, in 2022 a new pricing mechanism was enacted.17 With a price set initially at 137 dollars per ton of carbon dioxide, the structure of the excise tax applied to gasolines was modified to include a component linked to CO2 emissions, covering around 80 percent of Uruguay’s vehicle fleet. To further promote energy efficiency, a variety of tax incentives have been established for purchasing electric or hybrid electric vehicles, which now for example pay an average excise tax of 0 percent and 4 percent, respectively, compared to 29 percent for a traditional gasoline vehicle.18
15. Agriculture is being developed through a holistic approach that addresses food security, human health, competitiveness in external markets and environmental sustainability. Climate-smart practices for livestock production and land restoration have been rolled out with the objective of increasing cattle production on natural rangelands, increasing carbon sequestration on grasslands and restoring ecosystems services. As a result, livestock productivity has increased markedly from an average of 78 kg per hectare in 1995-98 to 93 kg per hectare in 2015-1819. While the total emissions associated with agricultural production in Uruguay have increased, productivity has been rising faster, resulting in lower emissions intensity. Most of the measures implemented within the climate-smart strategy have had impacts (direct or indirect) on several dimensions (adaptation, mitigation and productivity):
Integrated pasture management: Improves management of natural pastures and increases the availability of forages during periods of climate variability (adaptation); Reduces emissions and improves quality of livestock fodder (mitigation); Improves the productivity indexes of livestock breeding and rearing (productivity).
Water management/supply techniques: Ensures water availability during scarcity periods and maintains cattle’s physical and productive conditions (adaptation); contributes to lower emissions through improved management of natural pastures (mitigation); Stabilizes number of livestock per area unit, independent of climate (productivity).
Use of concentrate feeds and feed reserves: Increases food availability during extreme climate conditions (adaptation); Reduces emissions per unit of product (mitigation); Ensures, maintains and improves the productive structure (productivity).
16. Uruguay has taken important step towards its contribution to global public goods. With the support of its development partners, the country has also contributed to the creation of public goods, becoming a global leader in agriculture traceability systems and exporting knowledge to other countries through the South-South Cooperation. Since 2011, through its national system for livestock information, Uruguay became the first country in the Americas with 100 percent traceability of cattle and allowed consumers to know the origin of the beef.20
E. The Road Ahead
17. Advancing a climate-resilient economy and improving capacity for disaster risk management and macro-fiscal modeling. As climate hazards have become more intense and frequent, adaptation efforts need to be intensified. Building on the progress achieved so far, Uruguay could supplement its risk retention instruments with contingency-specific products for weather-related catastrophes. Drawing on current efforts from the Ministry of Livestock, Agriculture, and Fisheries, risk transfer instruments (i.e., agricultural insurance schemes) could also be scaled up relying on improved climate change information services and geo-referenced crop yields and soil management data. Broadening agro-ecological watershed management practices and advancing into an integrated water resources management would be key for the sustainability and quality of drinking water sources. Based on the national adaptation plans already rolled out, priority investments for climate adaptation should be identified as well as the policy reforms needed to attract private sector resources. The authorities should pursue their efforts to enhance institutional capacity to support the modelling of fiscal impacts from climate change (i.e. coastal floods, excessive rainfall, droughts) and environmental policies, and to integrate them into the national budget.
18. Aligning financing strategies with environmental outcomes. Uruguay’s advocacy to adapt multilateral development banks’ financing instruments to support national and global commitments on addressing climate change is commendable. As financing needs for building a climate-resilient economy may arise, tapping into innovative sovereign financing instruments (such as Sustainability-Linked Loans) that i) embed climate and nature-based indicators and ii) link financial terms to a country’s performance against climate change commitments would be key to reduce transition costs and provide incentives for sustainable policymaking. Innovative financing could also help altering risk-return profiles and scaling up private climate finance.
19. Deepening decarbonization and bolstering exports competitiveness. Ahead of tighter environmental regulations in Uruguay’s exports markets, climate-smart agriculture practices should be mainstreamed to consolidate the brand the country has built, Uruguay, and bolster its exports competitiveness. Drawing on its green electricity matrix, the authorities should pursue their effort to promote the e-mobility transition and the expansion of the charging infrastructure for electric vehicles. As a further greening of the economy could rely on green hydrogen, to encourage private sector investment and mobilize resources, the government should pursue its efforts in planning for the new energy and logistics infrastructures needed, developing the necessary local human capital, and laying out the required regulatory framework.
References
Bellon, Mathieu, and Emanuele Massetti, 2022. Economic Principles for Integrating Adaptation to Climate Change into Fiscal Policy. IMF Staff Climate Note 2022/001, International Monetary Fund, Washington, DC.
Central Bank of Uruguay, 2022. Road Map: The Central Bank and Sustainability. Montevideo, Uruguay.
Cortelezzi, Ángela, and María Methol, 2020. Integrated Risk Management and Policies for the Development of Agricultural Insurance Schemes. OPYPA 2020 Yearbook. Ministry of Livestock, Agriculture and Fisheries, Uruguay: pp 359-365.
Kennedy, Katie, and Raquel Orejas, 2015. Knowing your steak’s origin and impact on the environment? It’s possible. World Bank Blogs, Washington, DC.
Ministry of Economy and Finance, 2022. Uruguay’s Sovereign Sustainability-Linked Bond (SSLB) Framework. September 2022.
Ministry of the Environment, 2017. Oriental Republic of Uruguay’s First Nationally Determined Contributions. November 2017.
Ministry of the Environment, 2021. Uruguay’s Fourth Biennial Update Report on Climate Change. October 2021.
Ministry of the Environment, 2021. National Adaptation Plan to Climate Change and Variability for Coastal Zones in Uruguay. October 2021.
Ministry of the Environment, 2021. Uruguay’s 2019 National Greenhouse Gas Inventory. October 2021.
Ministry of Housing and Territorial Planning, 2021. National Adaptation Plan to Climate Change and Variability for Cities and Infrastructures in Uruguay. November 2021.
Ministry of the Environment, 2022. Oriental Republic of Uruguay’s Second Nationally Determined Contributions. December 2022.
Ministry of Livestock, Agriculture and Fisheries, 2019. National Adaptation Plan to Climate Change and Variability for the Agricultural Sector in Uruguay. September 2019.
National System of Response to Climate Change and Variability, 2017. National Policy for Climate Change. Montevideo, Uruguay.
National System of Response to Climate Change and Variability, 2021. Long-Term Climate Change Strategy. Montevideo, Uruguay.
U.S. Department of Agriculture, Foreign Agricultural Service, 2023. Livestock and Poultry: World Markets and Trade. January 2023.
World Bank, CIAT, 2015. Climate-smart Agriculture in Uruguay. CSA Country Profiles for Africa, Asia and Latin America and the Caribbean Series. World Bank Group, Washington, DC.
World Bank, 2022. State and Trends of Carbon Pricing 2022. World Bank Group, Washington, DC.
World Bank, 2022. Uruguay – Country Partnership Framework FY23-FY27. World Bank Group, Washington, DC.
Prepared by Jean Francois Clevy Aguilar (WHD). This SIP benefitted from valuable comments and suggestions from colleagues in the SPR department of the IMF, and authorities from the Ministry of Economy and Finance, the Ministry of Environment and the Ministry of Livestock, Agriculture and Fisheries during the Article IV consultation mission.
Based on Uruguay’s 2019 inventory of greenhouse gas emissions (INGEI 2019).
Uruguay’s Second Nationally Determined Contributions.
Primary energy matrix.
The National Climate Change Response System was created by the Decree 239-2009.
In Uruguay’s first Nationally Determined Contributions (2017), GHG emissions intensity targets are set with 1990 as reference year.
Progress tracker of the Nationally Determined Contribution.
World Bank’s Uruguay - Country Partnership Framework FY23-FY27.
NAP Coastal Zones.
Two additional national adaptation plans are being crafted for the energy and health sectors.
Decree 66/020 (2020).
World Bank Partners with Uruguay to Execute Largest Public Weather and Oil Price Insurance Transaction.
BCU’s Hoja de Ruta de Sostenibilidad (2022).
Uruguay’s Green Hydrogen Roadmap is published in the Ministry of Industry, Energy and Mining (2022). Green hydrogen is produced by using clean energy from renewable energy sources to split water into two hydrogen atoms and one oxygen atom through a process called electrolysis, in a climate-neutral manner.
Development & Selection of a Power to Liquids/eFuels Project in Uruguay.
Ley de Rendición de Cuentas 19,996.
Excise taxes based on 1,000-1,500 cubic centimeters engine capacity vehicles. Other incentives include no import tariffs and discounts on electricity rates for charging stations.
Ministry of Environment (2021).
