The Government of Uruguay and the World Bank agreed on the terms of a multilateral Loan Contract that will reward with a step-down in interest payments subject to the fulfillment of climate objectives related to reducing the intensity of methane emissions from its livestock sector, beyond its Paris Agreement commitments.

In order to achieve these goals, the successful experience of the Livestock and Climate program will be scaled nationally, expanding it to various livestock systems, with the primary objective of improving production efficiency, environmental sustainability and the economic return for producers. The potential interest savings (at 1 percentage point) would sum up to 12.5 million dollars over the loan’s term. Uruguay will be the first country to benefit from this feature and the World Bank will seek to replicate and scale this approach to incentivize countries to provide global public goods.