Temperatures continue to rise and Brazil reaches 62 C in March. Meanwhile, on the other side of the world, researchers in the Netherlands warn of a possible ice age in the Northern Hemisphere. Two sides of the same coin come into play to illustrate a single reality: climate change is altering the world we know. Concerned about this transformation, more and more political, institutional and economic actors are taking action (or reacting) to alleviate the impact. This movement brings, surprisingly (or not so much), opportunities for an Argentina that needs foreign investments like few times in history.
Let’s start with the context; A Schroders report this year shows that current concern over environmental issues is reshaping the global economic landscape. Investors favor a more sustainable approach and the search for the decarbonization of the economy is becoming increasingly interesting. A good example of this is the continued development of renewable energy sources: according to 67% of those surveyed for the report, this sector of the economy encourages investment in innovation. This context of permanent change is beginning to force investors to modify their way of acting, consolidating opportunities for companies and products that promote sustainability and positive impact as new ways of doing business.
Far from being an exclusive pattern of international investors, the local market also seems to choose sustainable financing. According to the latest BYMA report, in 2023 23 SVS (Social-Green-Sustainable) negotiable securities were issued, 35% more than in 2022 and thus the preference for these instruments is consolidated in recent years. In turn, of the total issues, 70% were Green Bonds (45% more than in 2022), 17% Sustainable Bonds and 13% Social Bonds. In this panorama, we are presented with the opportunity, as a country, to function as a space of attraction for those international agents who want to invest in a more sustainable world.
The examples are repeated. Despite the criticism that a certain agricultural sector in Argentina has suffered, in recent years its effort to shift towards more responsible production has been promising. It is worth highlighting the example of Agrology, Viterra and Puma, which promoted a program for the comprehensive measurement of the carbon footprint of some crops on more than 500,000 hectares. They detected that playing in the global market requires creating environmental and social value. Likewise, many producers are certifying similar processes (for example, soybeans) to export to international markets that demand environmental responsibility and transparency (and are therefore willing to pay more for that crop).
From the other productive side of the field, this year the first production of carbon negative beef in the world was certified in Argentina. Together, INTA, INTI and the private sector managed to validate the first production of one kilo of live bovine weight in a livestock field through the Environmental Product Declaration (EPD), the most rigorous certification and eco-labeling system globally. Another great advance, to continue opening or consolidating international markets.
The Argentine potential for the generation of renewable energy cannot be ignored. According to the Argentine Chamber of Wind Energy, 70% of the country has wind gusts strong enough to move windmills and produce clean energy. At the moment, the country has 57 wind farms with 900 wind turbines, and although production still does not represent 10% of what energy from fossil fuels generates, it shows great growth potential. Solar energy, another great star full of potential, verifies production with 39 solar plants feeding the Argentine Interconnection System, and the province of Jujuy leading with the largest solar field in Latin America. Another great opportunity to offer the world solutions to the order of the day.
The public conversation cannot and should not be exhausted in the sectors of the economy “linearly” linked to the immense natural resources of our country, and its clear link with a way of doing business that privileges sustainability, but must be extended to all the others. sectors of the economy and Argentine companies that have already chosen to build environmental and social value as an innovative path for their individual development. Whether for a company that produces plastic compounds, one dedicated to highly complex technical interventions in industries or cities, developers, demolitions and logistics movements, the proliferation of opportunities to be achieved through sustainability is consolidated at an international level and grows. locally.
Due to the extension and diversity of the Argentine territory, we are in a privileged position to achieve a sustainable future, of which all Argentines can be part. The world is looking for places to invest sustainably and Argentina can become that opportunity that foreign investors regularly seek.
