Balancing Climate Financing with Economic Growth: Argentina as a Case Study

Authors: Emiliano Torlasco, Timothy Weaver

SUNY Campus: University at Albany

Presentation Type: Poster

Location: Old Union Hall

Presentation #: 20

Timeslot: Session C 1:45-2:45 PM

Abstract: According to various estimates, the world needs approximately $1.4 trillion per year to address the climate crisis. Most recently, at the 29th edition of the United Nations Framework Convention on Climate Change Conference of Parties (COP29), $300 billion was committed by governments across the world. While monumental and certainly a step in the right direction, entities like the World Bank and the United Nations Environment Programme (UNEP) strongly agree that this will not suffice. The private sector must step in and fill the investment gap in order to reach the $1.4 trillion target. With attention to the increase in global private climate finance, this paper focuses on Argentina as a case study, aiming to provide insight into what methods of climate financing, if any, can be most beneficial for the economy. By comparing various climate financing methods (green bonds, sustainability-linked bonds, and sustainabilitylinked credit revolving facilities) and using the Solow Growth Model to see which ones can increase savings rate and labor productivity, an idea of the potential economic results can be developed. Due to their targeting towards small businesses (a key feature of the Argentine economy), private sector domain (as opposed to reliance on the government), and flexible structure that can adapt to almost any type of economic and political environment, I consider the promise of sustainability-linked revolving credit facilities as potentially effective instruments in sustainably growing Argentina’s economy.