National banks promote a green and sustainable financing project in northern Argentina

A group of national credit entities, including Nación, Macro, Corrientes and Formosa banks and with the support of del Chaco, will be part of an internationally supported project to generate green and sustainable finance in northern Argentina.

The project, selected by the UK’s Partnership for Accelerated Climate Transformation (UK PACT) programme, is led by SMS Latin America, and has the support of various civil society entities and productive sectors.

According to the information provided by the project organizers, the initial stage of identification and selection of the participating entities has already been completed.

Each bank will receive, from SMS in Buenos Aires, planning, technical assistance and training to generate more financing opportunities for green and inclusive activities by developing sustainable lines of credit and so that they can access appropriate sources of financing to expand these lines.

UK PACT is a capacity building program under the UK’s international climate finance portfolio, which aims to slow the progress of climate change while reducing poverty.

The Argentine project has the support of entities such as Coninagro, the FSC, many social actors and the governments of each province that collaborated with SMS in the initial survey, which aims to identify sectors in these provinces that could be key to more productive development. green and inclusive.

The initiative focuses on the northeast of the country because of its biodiversity, the presence of multiple sensitive ecosystems, and because it presents needs for economic and social development that the role of the financial system will be key to solving.

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It seeks to favor financing with a greener approach to sectors such as livestock, forestry, beekeeping, handicrafts, telecommunications, tourism and renewable energy, among others.

The first stage, which has already been completed, was diagnostics, during which the entities were identified and the level of integration of sustainable finance concepts into their operations was assessed.

The second focuses on studying economic activities and production models that have a positive environmental and social impact. Then reference will be made to the initial design of sustainable credit lines.

From September to November, a plan and a financial projection for the implementation of credit lines will be prepared for each entity. During the last four months of the year, a feasibility study will be carried out and a roadmap will be proposed for each bank to issue a green/sustainable bond.

(Tillam)

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