Uruguay to issue an environmental bond

Recently at COP26, Uruguay’s Minister of Economy announced that the country is working on the issuance of sovereign bonds with environmental criteria based on the Nationally Determined Contribution (NDC) in order to meet the objectives of the Paris Agreement. The amount and date of issuance is not yet defined.

The country has received advice from the Inter-American Development Bank (IDB) and the United Nations Development Programme (UNDP), and the plan includes policies for the eradication of settlements, with a focus on children.

The government is seeking to promote incentives and financial innovation to reward sustainable policies. Uruguay is working to transform production systems by incorporating the environmental dimension.