Argentina

In 2021, Argentina strengthened its commitment to the Paris Agreement by revising its Nationally Determined Contribution (NDC): it is now striving to limit its greenhouse gas emission ceiling to 359 MtCO2e by 2030. This is an ambitious commitment for Argentina, where the energy sector is responsible for 51% of emissions. To support this far-reaching goal, AFD finances projects that accelerate the development of renewable energies.

In April 2023, AFD granted Argentina a €100 million loan to finance the first phase of its federal program on electrical power transmission, which is also benefiting from $200 million from the Inter-American Investment Bank and €100 million from the European Investment Bank. There are also plans to build 442 km of power lines and 18 transformer substations, which will inject 148 MW of green energy into the electricity grid and help to decarbonize the energy sector.

We also provided support to the local development bank and IDFC member BICE, in the form of a $50 million credit line to support renewable energy projects and develop SMEs. The technical assistance provided to BICE will enable it to better mainstream the Sustainable Development Goals (SDGs) and to fight inequalities in the projects it finances.

Argentina is particularly vulnerable to the effects of climate change and the accelerating extinction of species. It faces many challenges, such as the depletion of water resources, coastal erosion, and how to manage extreme weather events. Argentina is also one of the countries that has lost the most forest area in the last 25 years.

AFD granted a loan of €65 million to Santa Fe Province for a preservation project targeting the biodiversity of its wetlands and of the Paraná River Valley. The project involves expanding and bolstering the management of protected areas as well as developing environmental education centers.

We also funded a study to help build a national system of indicators to monitor the country’s marine and coastal biodiversity, and we’re currently funding a study to assess the potential of peatlands in Tierra del Fuego to mitigate climate change.

But that’s not all: we’re also funding a study to support the “greening and sharing” of streets in 48 neighborhoods of Buenos Aires. This project explores new urban forms to bring a fresh approach to the links among people, nature, and the city’s infrastructure.

Argentina is receiving AFD support to address major challenges throughout the country, especially via projects dealing with solid waste management and recovery, urban mobility, and urban development. For example, AFD is financing projects led by the cities of Buenos Aires and Cordoba to improve people’s quality of life and develop sustainable, resilient, inclusive, and smart cities.

AFD is co-financing the modernization of the Belgrano Sur suburban railway line. This $75 million loan, co-financed with the World Bank ($600 million), will improve the accessibility, safety, inclusion, and sustainability of public transportation in Greater Buenos Aires. Ridership on this line is expected to more than triple, with 9,645 passengers expected during rush hour compared to 2,600 currently. 

Since 2018, we’ve been supporting “Plan Belgrano,” a program to develop water and sanitation services. AFD financing of $70 million, along with Inter-American Development Bank financing of $200 million, seeks to improve access to public drinking water and sanitation services in the disadvantaged northern provinces.

AFD ensures that gender equality is mainstreamed in a cross-cutting way (via “the gender approach”) into every project, so that they contribute to achieving Sustainable Development Goal 5 on gender equality.

This is why AFD is supporting the Ministry of Women, Gender and Diversity in developing the Mapa GenerAR mapping. The purpose of this mapping is to give a visual rendition of all the province and city actions and programs working toward institutionalizing gender and diversity issues.

We’re also providing technical support to develop and implement Santa Fe Province’s gender-sensitive budget, and we’re funding studies to mainstream gender issues into provincial investment programs.

To promote the country’s political and civic transition, we’re co-financing the program to strengthen provincial management via a $50 million loan co-financed with the Inter-American Development Bank ($150 million). The program seeks to contribute to economic development in the provinces by improving the management of their public finances.

The Euroclima+ program is helping 33 countries in Latin America and the Caribbean to implement their COP21 climate commitments. Its goal is to strengthen the climate resilience of vulnerable ecosystems and communities via actions aligned with the European Global Gateway initiative.

In Argentina, AFD Group is putting into action the following projects to fight climate change and to build resilient and sustainable urban management and energy efficiency:

• promoting climate justice issues among indigenous and rural women;
• strengthened capacities for local governments in energy efficiency for buildings;
• climate risk management in the Cordoba urban area (Argentina) and the inter-municipality of West São Paulo (Brazil);
• updating and implementing the Cordoba Sustainable Urban Mobility Plan and supporting its development for intermediary cities;
• development of an environmental center and closure of an open-air landfill in the city of Tornquist;
• institutional consolidation and development of tools to access international climate funds.