Argentina authorities jointly commit to developing sustainable finance

RIO DE JANEIRO, BRAZIL – The Argentine government and banking, insurance, and capital market regulators of the South American country committed on Tuesday (7) to promote the development of sustainable finance.

This commitment was embodied in a joint declaration that sets the objective of generating the conditions for the financial sector to attract public and private investments that contribute to achieving economic, environmental, and social objectives in line with the Sustainable Development Goals (SDGs) and that respond to climate change through the financing of mitigation and adaptation strategies.

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The document was signed on Tuesday by the Argentine Minister of Economy, Martín Guzmán, the President of the Central Bank, Miguel Pesce, the head of the National Securities Commission (market regulator), Adrián Cosentino, and the Superintendent of Insurance of the Nation (regulator of the insurance sector), Adriana Guida.

According to official sources, this joint declaration is part of the sustainable finance technical roundtable created in 2020 and led by the Argentine Ministry of Economics with the Inter-American Development Bank (IDB).

Guzmán stressed the importance of generating public and private investment alternatives that promote sustainable development “because productive transformation for environmental sustainability is not only a matter of development but also of macroeconomic stability.”

For his part, the head of the Central Bank stated that, as from the signing of this declaration, a joint work would begin “in terms of incorporation and management of environmental, social and climate risks, from a micro and macroprudential perspective, key for the development of a resilient and stable financial system.”

“I welcome this joint commitment to promote the development of sustainable finance that promotes the participation of the different financial system actors to channel resources and investments towards green, environmental and social projects and activities,” said Pesce.

Meanwhile, Cosentino highlighted the work that the market regulator has already been doing, creating financial products “capable of attracting capital to finance projects with positive environmental and social impact, and we promote tools that allow familiarization with their incorporation in corporate and investment decisions.”

For his part, Guida emphasized that “insurance plays a key role in the transition to a sustainable economic model through the promotion of financial inclusion, contributing to the construction of a world that is socially and environmentally capable of adapting to positive changes for future generations.”

The joint statement seeks to promote adequate incorporation, management, regulation, and supervision of risks associated with social, environmental, and governance (ESG) criteria, including climate-related financial and balance of payments risks, to design policies that contribute to the strengthening, development, and stability of the Argentine financial system.

Likewise, the parties are committed to developing a joint long-term agenda that will enable the entities under their supervision to develop the necessary capabilities to identify, manage and incorporate ESG criteria into their business strategies.