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The business case for climate change - Argentina - EY - Global

The business case for climate change: choosing the right pathArgentina

Argentina’s sponsored programs are designed to ensure renewable energy plays a larger role in Argentina’s future energy mix.

Climate change country overview

As a developing country, and a non-Annex 1 signatory of the Kyoto Protocol, Argentina is not required to set obligatory emission reduction targets as established by the Protocol.

Argentina has already carried out, or is in the process of developing, a group of measures and programs to reduce greenhouse gas (GHG) emissions. But, GHG emissions mitigation and adaptation initiatives generally require a substantial initial investment.

Fast economic growth and a lack of investment have placed pressure on Argentina’s public and social service infrastructure. With Argentina’s limited resources, GHG investments would come at the expense of reducing social investments, which are currently a priority for the country.

To make significant progress in implementing climate change programs, Argentina will likely require outside funding.1

GHG reduction efforts

  • GHG reduction commitment. None
  • Legislation. Clean Development Mechanism (CDM); Argentine Carbon Fund (Decree 1070/05); Program of Rational Use of Energy (Resolution 415/04); Biofuels Law 26093/06

Business implications

Organizations doing business in Argentina may wish to consider the following implications:

  • Federal Law No. 26093 – Biofuels. Law 26093/06 regulates and promotes the production and use of biofuels. From 2010 forward, all liquid fuels used in transportation will require the addition of biofuels.
  • Biofuels Law tax incentives.2 These incentives provide tax breaks for investing companies. They include value added tax (VAT) reimbursement and accelerated depreciation of assets for income tax purposes.
  • National Urban Solid Waste Management Strategy. Approximately 60% of the disposal of urban solid waste is contained in open-air landfills. This strategy protects the health of the population by replacing public landfills with controlled landfills. Methane capture and elimination is also being considered as part of this strategy.
  • Program of Rational Use of Energy. The Secretary of Energy (SE) established a Program of Rational Use of Energy in 2004 to encourage electric power savings. The SE is currently developing the Project of Energy Efficiency with the participation of power distribution companies. The goal is to save substantial energy versus current usage.
  • National Plan for Wind Power. The SE has a national plan for wind power generation and the development of a national wind energy industry. Plans call for the installation of 300MW of power in a first phase of the project.

1 Secretaría de Ambiente y Desarrollo Sustentable — Unidad de Cambio Climático.

2Argentina — Global Renewable Energy — Policies and Measures,” International Energy Association.


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