Poverty in urban areas in Argentina increased from 21.5% in 2016 to 34.4% in 2020, surpassing the Latin America and the Caribbean (LAC) average of 26.3%, partly owing to the impact of the COVID-19 pandemic. Extreme poverty in urban areas also increased in that period from 2.9% to 6.3% but remains below the LAC average (8.7%). Inequality remained relatively stable. The Gini index increased from 42.0 in 2016 to 42.3 in 2020, remaining below the LAC average (45.3). Regarding environmental indicators, in 2019, greenhouse gas (GHG) emissions per capita were 8.2 tonnes of carbon dioxide equivalent (t CO2e), higher than the averages for LAC (6.3) and slightly below for countries belonging to the Organisation for Economic Co-operation and Development (OECD) (9.1). That year, the share of population exposed to air pollution levels that pose risks to human health (PM2.5 at more than 10 µg/m3) was 98.5%, higher than 95.4% for LAC and 61.0% for the OECD. The marine protected area of Argentina accounted for 11.8% of its territorial waters in 2021, compared to 7.3% for LAC and 18.6% for the OECD. On the fiscal side, environmentally related tax revenue was 1.8% of gross domestic product (GDP) in 2020, above LAC (1.0%) and below the OECD (2.1%). Total tax revenues as a percentage of GDP (29.4%) remains higher than the LAC average (21.9%) but below the OECD average (33.5%).
Latin American Economic Outlook 2022
Argentina
1. Recent trends
2. Long-term development policies for a green transition
Following the General Environment Law of 2002, Argentina approved laws on waste management (Law No. 25916 of 2004), water management (Law No. 25688 of 2002) forest protection (Law No. 26331 of 2007), and glaciers (Law No. 26639 of 2010). In 2019, Argentina promoted the Law on Minimum Standards for Adaptation and Mitigation of Global Climate Change and created the National Climate Change Cabinet which is developing the National Response Plan.
In terms of mitigation, the National Energy and Climate Change Action Plan promotes biofuels, renewable energies and energy efficiency to reduce the energy sector’s GHG emissions. In addition, Argentina is committed to reducing deforestation and degradation through its REDD+ (Reducing Emissions from Deforestation and forest Degradation) strategy. The National Plan of Sustainable Mobility sets goals for a sustainable vehicle fleet and an electric charging network. The 266/2022 ministerial resolution created the Programa de Movilidad Integral no motorizada to implement sustainable mobility policies. Adaptation policies include the Plan GIRSU for improved urban solid waste treatment. The federal plan Casa Común promotes green projects with a social impact. To make the green transition socially inclusive, the Potenciar Empleo Verde programme supports sustainable economic actors that create decent jobs.
Regarding international partnerships within the region, Argentina ratified the Escazú Agreement in 2021 to enhance public participation in decision making and access to justice in environmental matters. Through MERCOSUR, it co-ordinates environmental policies and participates in a project with the National Metrology Institute of Germany to develop energy efficiency standards for household appliances. Argentina is working with 13 Iberoamerican countries in the project H2Transel to develop the production of hydrogen. Beyond LAC, Argentina is working with EUROCLIMA+ on forest management, electric mobility and energy efficiency. Argentina is part of the Partnership for Action on Green Economy which supports national efforts in the transition to green economies. Co-financed with the Green Climate Fund (GCF), the country is scaling up investments by small and medium-sized enterprises in renewable energy and energy efficiency. The GCF approved REDD+ result-based payments for the Period 2014-16. Since 2021, Argentina has been part of the international Pathways PtX initiative, led by the German government, to promote sustainable hydrogen markets.
In terms of green finance, the Ministry of Economy is developing a roadmap to issue sovereign green, social and sustainability (GSS) bonds. In 2019, the National Securities Commission presented guidelines for the issuance of GSS Marketable Securities and created a Sustainable Finance Programme. It also approved a special regime for sustainable collective investment products (General Resolution No. 885 of 2021), three guidance, advisory and educational documents on sustainable finance (General Resolution No. 896 of 2021), and a simplified regime for the issuance of social impact bonds (General Resolution No. 940 of 2022). The National Bank of Argentina is developing its first sustainable financing lines, and the Central Bank recently became a full member of the Network for Greening the Financial System. In 2020, the Ministry of Economy created the Mesa Técnica de Finanzas Sostenibles (MTFS) as a permanent forum to strengthen sustainable finance in Argentina and develop a national sustainable finance strategy. Within the MTFS framework, a joint statement was signed by the regulators of the banking, insurance and capital market sectors to promote sustainable finance and advance in the analysis of climate-related financial risks.
Key indicators – Argentina
|
|
Argentina |
LAC |
OECD |
|||
|---|---|---|---|---|---|---|
|
Social |
|
|
|
|||
|
|
2016 |
2020 |
2016 |
2020 |
2016 |
2020 |
|
Extreme poverty |
2.9 |
6.3 |
8.1 |
8.7 |
N/A |
N/A |
|
Poverty |
21.5 |
34.4 |
25.9 |
26.3 |
N/A |
N/A |
|
Share of Internet users (% of population) |
71.0 |
85.5 |
53.7 |
68.1 |
81.8 |
88.0 |
|
|
2016 |
2020 |
2016 |
2020 |
2016 |
2019 |
|
Gini index |
42.0 |
42.3 |
46.3 |
45.3 |
34.9 |
34.2 |
|
|
2010 |
2018 |
2009 |
2018 |
2009 |
2018 |
|
Share of total population in informal households (%) |
35.7 |
36.8 |
43.4 |
36.3 |
N/A |
N/A |
|
Share of total population in informal households, upper-income quintile (%) |
18.2 |
N/A |
24.5 |
13.6 |
N/A |
N/A |
|
Share of total population in informal households, lower-income quintile (%) |
73.7 |
N/A |
70.4 |
72.0 |
N/A |
N/A |
|
|
2016 |
2019 |
2016 |
2019 |
2016 |
2019 |
|
Health expenditure (% of GDP) |
9.0 |
9.5 |
6.5 |
6.8 |
8.7 |
8.8 |
|
SIGI index |
N/A |
N/A |
N/A |
25.4 |
N/A |
17.5 |
|
|
2015 |
2018 |
2015 |
2018 |
2015 |
2018 |
|
PISA score in science |
432 |
404 |
411 |
407 |
489 |
487 |
|
Productivity and innovation |
|
|
|
|
|
|
|
|
2016 |
2021 |
2016 |
2021 |
2016 |
2021 |
|
Labour productivity (% of the United States) |
40.7 |
34.8 |
29.0 |
26.6 |
69.9 |
67.2 |
|
|
2016 |
2020 |
2016 |
2020 |
2016 |
2020 |
|
High-tech exports (% of manufactured exports) |
9.0 |
6.9 |
8.4 |
7.2 |
16.5 |
16.2 |
|
|
2016 |
2019 |
2016 |
2019 |
2016 |
2019 |
|
R&D expenditures (% of GDP) |
0.6 |
0.5 |
0.3 |
0.4 |
1.8 |
2.0 |
|
Citizens’ perceptions and institutions |
|
|
|
|
|
|
|
|
2016 |
2021 |
2016 |
2021 |
2016 |
2021 |
|
Share of population satisfied with efforts to preserve the environment (%) |
43.9 |
35.0 |
46.2 |
42.0 |
55.3 |
51.2 |
|
Share of population with confidence in national government (%) |
42.0 |
32.7 |
34.2 |
39.4 |
40.3 |
46.3 |
|
Share of population that thinks corruption is widespread throughout government (%) |
77.7 |
75.4 |
74.5 |
70.0 |
59.0 |
54.9 |
|
Share of population satisfied with the education system (%) |
57.1 |
52.0 |
64.9 |
54.3 |
67.0 |
66.8 |
|
Share of urban population satisfied with the availability of quality health care (%) |
50.8 |
51.0 |
49.2 |
48.9 |
68.2 |
69.5 |
|
Environment and the green transition |
|
|
|
|
|
|
|
|
2004-19 |
|
2004-19 |
|
2004-19 |
|
|
Loss of natural and semi-natural vegetated land (%) |
0.9 |
|
1.5 |
|
1.3 |
|
|
|
2016 |
2019 |
2016 |
2019 |
2016 |
2019 |
|
GHG emissions per capita excluding LUCF (t CO2e) |
8.6 |
8.2 |
6.3 |
6.3 |
9.6 |
9.1 |
|
Air pollution – exposure to PM2.5 (annual average exposure to more than 10 µg/m3, % of population) |
99.1 |
98.5 |
95.5 |
95.4 |
61.3 |
61.0 |
|
|
2016 |
2020 |
2016 |
2019 |
2016 |
2020 |
|
Contribution of renewables to total primary energy supply (%) |
7.3 |
8.5 |
34.2 |
33.4 |
19.7 |
22.9 |
|
|
2016 |
2021 |
2016 |
2021 |
2016 |
2021 |
|
Marine protected areas (% of territorial waters) |
4.0 |
11.8 |
2.5 |
7.3 |
16.5 |
18.6 |
|
Fiscal position |
|
|
|
|
|
|
|
|
2016 |
2020 |
2016 |
2020 |
2016 |
2020 |
|
Environmentally related tax revenue (% of GDP) |
2.1 |
1.8 |
1.1 |
1.0 |
2.4 |
2.1 |
|
Total tax revenues (% of GDP) |
30.7 |
29.4 |
22.2 |
21.9 |
33.6 |
33.5 |
|
Share of VAT (% GDP) |
7.1 |
6.9 |
5.8 |
5.6 |
6.6 |
6.7 |
|
Share of PIT (% GDP) |
2.1 |
2.3 |
2.1 |
2.2 |
7.8 |
8.3 |
|
Share of CIT (% of GDP) |
2.9 |
2.8 |
3.3 |
3.4 |
2.9 |
2.7 |
|
Perception of tax evasion (%) |
N/A |
34.7 |
N/A |
27.3 |
N/A |
N/A |
|
Debt service (% of total tax revenue) |
6.2 |
8.2 |
11.3 |
13.0 |
5.6 |
5.2 |
|
|
2016 |
2020 |
2016 |
2020 |
2016 |
2019 |
|
Social expenditure (% of GDP) |
14.2 |
17.2 |
11.5 |
13.6 |
20.0 |
19.9 |
Note: See the Reader’s Guide for definitions and sources.