Fostering green finance in Argentina

• The initial phase of the project was implemented in four of the poorest provinces in the Northeast of Argentina: Chaco, Formosa, Misiones, and Corrientes. It then expanded to four further provinces across different regions: Entre Ríos, La Rioja, Mendoza, and Neuquén. These regions are largely agricultural and livestock-based, making the populations very vulnerable to climate change
• Technical assistance was provided to FIs supporting the sustainable projects and green economic activities they finance
• Stakeholders identified several critical and urgent changes of high social and environmental impact which required sustainable investments. Among these stakeholders, vulnerable rural producers and women entrepreneurs were central to the project
• The primary challenge was the unstable and challenging macroeconomic situation that impacted the local financial market and decision-making of FIs. This limited them from offering long-term financing and launching new products with favourable conditions that encouraged green and social impact models

As a result of the project activities, the following results and progress were achieved: 

• Macro Bank, Corrientes Bank, and IADEP initiated the evaluation of a sustainable bond issuance
• Banco Formosa planned to implement a sustainable credit line and an award to support the province's triple impact system
• Banco Nación made key advances in designing credit lines for energy efficiency and renewable energy. They also initiated negotiations with the Mendoza development agency (FTYC) for a sustainable credit line alliance and strengthened their Sustainable Development Goal (SDG) framework for financial instruments
• Banco Rioja had high-level discussions regarding the need for a comprehensive green finance strategy and aimed to enhance internal capacities in this area
• Sumatoria issued three social and sustainable bonds during the project, raising approximately USD 1.5M to finance impactful projects, including those led by women entrepreneurs
• Sumatoria, Fundación Alimentaris, and Potenciar collaborated to establish the Gran Chaco Americano Bioregional Fund, supporting sustainable development in the region
• The mapping process revealed over 700 sustainable investment opportunities worth more than USD 2.2bn, primarily in agriculture, construction, industrial, and renewable energy sectors
• Capacity building initiatives included seven workshops for financial institutions. Additionally, a round table held in Paraguay attracted 15 participants from different countries
• Seven capacity-building activities targeted vulnerable rural producers and women, including financial education workshops and value chain working groups
• Two high-impact models, the sustainable forestry carbon project GMF, and NGO Fundación Gran Chaco, received technical advice to develop sound financing strategies

The project focused on vulnerable and disadvantaged groups in north-east Argentina, particularly in the northern provinces with the lowest levels of development, social inclusion, and environmental sustainability. The two main targeted groups were vulnerable rural producers, including small familiar producers and indigenous communities engaged in sustainable agricultural activities, and women entrepreneurs, encompassing SMEs led by women in traditional sectors or rural indigenous women with craftworks or other projects.

Key GESI achievements included:

• Highlighting economic opportunities for women to promote credit access
• Raising FIs awareness of productive initiatives and organisations led by women and vulnerable population groups – and the challenges and opportunities of integrating their needs into the product development process
• Involving FI professionals from all internal sectors to fulfil the commitment to develop a sustainable portfolio with a positive impact in the province. This is reflected in the composition of the staff designed to take part in the project
• Investments directed towards women, including carob tree flour by women producer organisations, microcredit funds directed to craftswomen cooperatives and women micro-entrepreneurs, and investments directed to productions traditionally realised by rural women – such as greenhouse productions or small livestock and avian productions
• The FIs made concrete progress in the design of two sustainable credit lines – gender and sustainable. Both lines have the objective of including vulnerable groups in the formal financial system 
• The project favoured real connections between women entrepreneurs, vulnerable producers’ organisations and local banks. This will enable a long-term dialogue, and the team is still in contact with the actors who participated in the rural women's initiative to continue the work 

The project identified a number of key learnings and next steps:

• Sustainable investment opportunities mapping is invaluable for local governments and participating banks. The project's tools can be replicated in other countries in the region, as they are essential for financial institutions to plan their sustainable portfolio development
• The tools provided by the project should enable the FIs to launch green and inclusive lending products and sustainable bonds in the short and medium term. However, participating FIs in Argentina must continue training their teams and developing sustainable products and services
• The Sustainable Finance Protocol, comprising major Argentinean banks, offers a suitable platform to drive new initiatives and strengthen banks' commitment to building a sustainable portfolio
• Engaging with the Federal Government Roundtable on Sustainable Finance is crucial for driving these initiatives. Presenting project results and recommendations to them fosters additional support for sustainable finance efforts