Argentina can benefit from the transition to a low-carbon world by means of the transformation of the energy and agricultural sectors and grow almost 3% per year its Gross Domestic Product (GDP) in eight years, according to the Report on Climate and Development that the World Bank Group released this Thursday.
The report reveals that the expansion of investments in the water, agriculture and energy sectors are a priority to reduce the country’s vulnerability to climate change and boost economic growth.
“Annual GDP could increase by 2.7% by 2030 if they are done investments in water infrastructure to avoid scenarios of water scarcity and difficulties in access”, specified the international organization.
The report also recommends the iimplementation of techniques to reduce deforestation and boost the country’s agricultural competitiveness.
And he warned that “if Argentina does not take actions to reduce emissions from the agricultural sector4% of its exports could be affected by the climate regulations of other countries, which would mainly harm producers that do not implement sustainable practices,” the text said.
“Argentina is committed to increasing its climate commitments and leading the transition to a low-carbon economy. By doing so, you can significantly increase your economic growth and the well-being of your people,” he said. Jordan Schwartz, director of the World Bank for Argentina, Paraguay and Uruguay.
Schwartz added that “the World Bank supports Argentina’s efforts to deepen its understanding of the impact of climate risk, improve the resilience of the most vulnerable, and identify opportunities for decarbonization.”
Also, the report analyzes the impacts that Argentina is already suffering from climate change, mainly the losses caused by droughts and floods.
In this sense, “by 2050 up to 4% of GDP could be lost due to drought. Also, floods cause annual losses of up to $1.4 billion in assets and some US$4 billion in welfare losses,” it was estimated.
Thus, Julie Rozenberg, senior economist and co-author of the reportconsidered that “incorporating the climate vision in the design of development policies is urgent in order to minimize the impact, reduce losses and be prepared for a carbon-neutral future”.
The text highlighted that since 2010, in line with Argentina’s commitment to achieve carbon neutral development by 2050, the country has managed to start reducing its emissions, mainly through a decrease in deforestation.
The report raises a possible roadmap in which the country could reduce greenhouse gas (GHG) emissions by 16% by 2030 and 64% by 2050, taking 2018 as the baseline.
According to the World Bank, the energy sector, led by fossil fuels, it contributes 37% of GHG emissions, so “it will be important to continue developing the great potential for renewable energy and invest in energy efficiency,” they warned.
Secondly, Argentine lithium could cover almost 20% of global demand in 2030 Y turn the country into a relevant actor in the energy transition, which would also mean important economic benefits, especially for the provinces of Jujuy, Salta and Catamarca, in the north of Argentina, the Bank highlighted.
Meanwhile, include the transport in the decarbonization strategy and move towards electromobility could create 21,000 new jobs in the battery and vehicle sectors, the agency said
Finally, David Tinel, regional manager for the Southern Cone of the International Finance Corporation (IFC)the agency’s private sector lending arm, stated that “the Argentine private sector is called upon to play a decisive role in the transition to a low-carbon, climate-resilient economy.
“Through investments that allow innovation in climate-smart agriculture, renewable energies and green hydrogen, the development of the lithium value chain and the development of green financing mechanisms, such as bonds and loans linked to sustainability” Tinel indicated.
