“Uruguay, a country that bets on the future”, by Luis Hierro López

Government Uruguayan presented its plan for the development of green hydrogen, a long-term strategy that seeks to consolidate the country as a supplier and exporter of this product and its derivatives.

Uruguay, which is one of the countries with the best environmental behavior, has advanced in the almost total decarbonization of its electricity matrix and this second stage of that transition includes the development of a green hydrogen economy to achieve that condition in transport and industry. .

The strategy is ambitious, since the goal will be reached definitively by the year 2040, but the country has already successfully experimented with long-term policies, such as afforestation and pulp production or the installation of free zones, two keys to current economic development. promoted by laws of 1986 and 1987. Afforestation and cellulose have changed the productive matrix of Uruguay, previously based almost exclusively on livestock and agriculture. Pulp has already become the second export product, generating thousands of jobs with good salaries. Free zones attract significant investment and have driven a shift in exports to services and technology products. With these results, it is appropriate and welcome that a government designs a policy that will come into full force within fifteen or twenty years.

Uruguay has many attributes to be able to become a producer and exporter of green hydrogen. Among them, the potential for generating electricity from wind and solar sources at low cost. For all these reasons, it is foreseeable that the project will generate significant investments from abroad.

In line with this project, the Ministry of Economy and Finance issued a new bond “Indexed to Indicators of Climate Change, (BIICC)” maturing in 2034. The issue was 1,500 million and the demand reached US$ 3,960 million.

This is the first debt title of these characteristics issued by Uruguay – and one of the first in the world – and its interest is tied to compliance with environmental indicators, such as the reduction of greenhouse gases and the maintenance of the native forest area. It is a bet that depends on many complex factors, but Uruguay took a risk and savers and investors trusted. It is an action that will surely influence the stock market trend of the next time.

Little Uruguay, with little territory and population, fights boldly for its place in the world.

Source: Elcomercio

Ronald Payne

I, Ronald Payne, am a journalist and author who dedicated his life to telling the stories that need to be said. I have over 7 years of experience as a reporter and editor, covering everything from politics to business to crime.