The government published the new Framework for potential issues of Uruguay’s Bonds Indexed to Climate Change Indicators (BIICC). This Framework aligns with the five main components of ICMA’s 2020 Sustainability-Linked Bond Principles, according to Sustainalytics’ Second Party Opinion Report.

The Framework outlines Uruguay’s strategic sustainability priorities and sets targets for two KPIs linked to climate change mitigation and nature conservation objectives: (i) reduction of Greenhouse Gas emissions intensity and (ii) conservation of the country’s native forest area. The Performance Targets (SPT) are based on the quantitative targets set by Uruguay for 2025 in its Nationally Determined Contribution (NDC).

Uruguay intends to align its domestic financing strategy and borrowing costs with its sustainability efforts, by creating an innovative tool that articulates countries and their investment base to provide global public goods.

The Framework is a joint effort of five Ministries: Economy and Finance; Environment; Agriculture, Livestock and Fisheries; Industry, Energy and Mining; and Foreign Affairs. The project received technical assistance from the Inter-American Development Bank (IDB) and the United Nations Development Programme (UNDP).