The United Nations Green Climate Fund approved credit for biogas and biomass projects in Argentina, promoted by small and medium-sized enterprises.
The Green Climate Fund (GCF) approved financing for the country of US$ 100 million for energy efficiency and renewable energy projects, especially biogas and biomass, which are promoted by small and medium-sized companies throughout the country.
The financing was approved on Tuesday (27.02.2018) during the meeting of the board of directors of the GCF held at its headquarters in Songdo, Republic of Korea, and will be channeled through the IDB which is the entity accredited by the Fund to act as an intermediary.
The line will be strengthened with a contribution made by the BICE of US$ 60 million SMEs and private investors are expected to additionally mobilize approximately US$70 million in resources. The loan also includes US$3 million more for non-reimbursable technical cooperation, which will be used for research and technical training.
The objective of the project is Promote efficiency in the production and use of renewable energy in Argentina, with a view to contributing to the reduction of greenhouse gas emissions and the development of a financial environment more conducive to long-term investment in sustainable energy. “These funds allow us to promote a strategic area for the country's economic development by encouraging private investment in green projects,” said Pablo Garcia, President of BICE.
The initiative is in line with the Argentine government's goal of increasing the share of renewable energy in electricity consumption to 20% by 2025 and reducing total final energy consumption by 10,2% by 2030. It is also aligned with the goal of reducing greenhouse gas emissions by 18% by 2030.
The loan will be managed through BICE directly to companies or through its second-tier channel. The beneficiaries will be small and medium-sized companies; energy consumers that invest in eligible technologies (such as biomass, biogas and energy efficiency); market agents in the sector; and local financial institutions.
El@GCF_News will finance BICE with USD 100 million for energy efficiency and renewable energy projects promoted by #SMEs @the_IDB https://t.co/xKr6LFx5Bw
— BICE (@BICE_Arg) February 27th 2018
Aduana News is the first Argentine customs newspaper to launch its digital version. With 20 years of experience, its publications and initiatives aim to provide the most relevant knowledge on customs issues in order to contribute to safe trade in the region.
