This type of financing requires a taxonomy, which provides clear guidelines regarding what is and what is not a sustainable project.
The taxonomy will include 170 areas and be the largest in Latin America, he said.
Together with 200 experts, the finance ministry will define environmental and social criteria for eight sectors that were selected for their economic importance, environmental impact, and potential in reducing emissions, said Yorio.
In terms of the environment the sectors are: agriculture, energy, construction, manufacturing, transportation and waste management, and for the social aspect: sustainable cities and gender equality.
The EU has a sustainable finance taxonomy in place since 2020, which is in line with the UN’s Sustainable Development Goals.
It is part of the regulatory development of the European Commission to link the financial sector with the union’s decarbonization objectives.