Argentina can attain more robust economic growth by transitioning to a low-carbon economy, particularly transforming its energy and agricultural sectors, according to the .
Curent impact of climate change
The report also analyzes the impact of climate change that is already affecting Argentina, especially floods and droughts. Annual asset losses due to flooding total $1.4 billion, a figure that will increase as weather events intensify. In addition, by 2050 losses due to droughts could mean 4% of GDP.
The Country Climate and Development reports are part of the World Bank Group's Climate Change Action Plan for 2025 and Argentina is one of the first 25 countries where this diagnosis is produced, analyzing at the local level how to achieve net-zero emissions.
Climate Action in Latin America and the Caribbean
Argentina: Country Climate and Development Report
The report analyzes climate change impacts that Argentina is already facing, mainly through losses caused by droughts and floods. By 2050 drought losses could account for 4 percent of Argentina¡¯s GDP. Furthermore, floods cause up to $1.4 billion average annual asset losses and $4 billion of welfare losses.
Pursuing decarbonization in agriculture, livestock and land use change is key since it represented 39 percent of GHG emissions in 2018. According to the report, climate?smart agriculture practices for soils, livestock, and in value chains are the options for reducing emissions and increasing carbon sequestration in Argentina¡¯s agrifood sector.
The energy sector, led by fossil fuels, contributes 37 percent of GHG emissions. Continuing to develop the great potential for renewable energies and investments in energy efficiency would be important during the transition. Moreover, lithium from Argentina could cover almost 20 percent of the global demand in 2030,
making the country a relevant player in the energy transition. This would also mean important economic benefits, especially for the provinces of Jujuy, Salta and Catamarca in the north of Argentina.
Including the transport sector in the decarbonization strategy is another key area of proposed action. Reforms in the efficiency of logistics activities together with the adoption of low carbon emissions technologies (such as biofuels, green hydrogen and electromobility) could help. Additionally, electromobility could create 21,000 new jobs in the battery and vehicle sectors.
