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Support for a clean, just and sustainable energy transition
Support the preparation of the Energy Transition Plan and strengthen the planning capacities of the energy sector to contribute to the fulfillment of the climate commitments established by Argentina.

Project Detail

Country

Argentina

Project Number

AR-T1266

Approval Date

April 20, 2022

Project Status

Implementation

Project Type

Technical Cooperation

Sector

ENERGY

Subsector

LOW-CARBON ENERGY TECHNOLOGIES

Lending Instrument

-

Lending Instrument Code

-

Modality

-

Facility Type

-

Environmental Classification

-

Total Cost

USD 400,000.00

Country Counterpart Financing

USD 0.00

Original Amount Approved

USD 400,000.00

Financial Information
Operation Number Lending Type Reporting Currency Reporting Date Signed Date Fund Financial Instrument
ATN/OC-19222-AR Sovereign Guaranteed USD - United States Dollar Ordinary Capital Nonreimbursable
Operation Number ATN/OC-19222-AR
  • Lending Type: Sovereign Guaranteed
  • Reporting Currency: USD - United States Dollar
  • Reporting Date:
  • Signed Date:
  • Fund: Ordinary Capital
  • Financial Instrument: Nonreimbursable

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Implementation Phase
https://www.iadb.org/document.cfm?id=EZSHARE-1375635338-34001
AR-T1266_P1054587_SP.pdf
Published Sep. 07, 2022
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https://www.iadb.org/document.cfm?id=EZSHARE-2107095313-7
REOI-AR-T1266-P001.docx
Published Sep. 06, 2022
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https://www.iadb.org/document.cfm?id=EZSHARE-1375635338-33961
AR-T1266_P1045719_SP.pdf
Published Aug. 31, 2022
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https://www.iadb.org/document.cfm?id=EZSHARE-1589847877-29
Documento de CT - Divulgacion_597.pdf
Published Apr. 24, 2022
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https://www.iadb.org/document.cfm?id=EZSHARE-1589847877-28
Plan de Adquisiciones_63166.pdf
Published Apr. 24, 2022
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Other Documents
https://www.iadb.org/document.cfm?id=EZSHARE-2107095313-6
REOI-AR-T1266-P001 20220829.docx
Published Aug. 30, 2022
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https://www.iadb.org/document.cfm?id=EZSHARE-1589847877-26
Matriz de Resultados_15441.pdf
Published Apr. 24, 2022
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https://www.iadb.org/document.cfm?id=EZSHARE-1589847877-27
Terminos de Referencia_59530.pdf
Published Apr. 24, 2022
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https://www.iadb.org/document.cfm?id=EZSHARE-1589847877-25
Solicitud del Cliente_13119.pdf
Published Apr. 24, 2022
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Preparation Phase
https://www.iadb.org/document.cfm?id=EZSHARE-1589847877-30
AR-T1266-TC ABSTRACT.pdf
Published May. 03, 2022
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Publications
Published 2022
High and Dry: Stranded Natural Gas Reserves and Fiscal Revenues in Latin America and the Caribbean
The global low-carbon energy transition driven by technological change and government plans to comply with the Paris Agreement makes future gas demand, prices, and associated public revenues uncertain. We assess the prospects for natural gas production and public revenues from royalties and taxation of gas production in Latin American and the Caribbean under different levels of climate policy. We derive demand from a global energy model, and supply from a global natural gas field model and a global oil field model for associated gas. We find that natural gas production and associated public revenue are strongly impacted by decarbonization efforts. The more stringent climate policy is, the lower the production of natural gas. Exporting natural gas from Latin America and the Caribbean does not help the rest of the world reduce greenhouse gas emissions. In scenarios consistent with limiting global warming well-below 2C, incumbent producers and natural gas associated with oil dominate production, drastically limiting opportunities for new gas production in the region and increasing the amount of gas left in the ground. Reduced demand for gas produced from Latin America and the Caribbean is mainly driven by falling demand in the region itself, as energy demand in buildings, industry, and transportation shift towards electricity produced from zero-carbon sources. Cumulative public revenues from natural gas extraction by 2035 range between 42 and 200 billion USD. The lower end of the range reflects scenarios consistent with below 2C warming. In this case, up to 50% of proven, probable, and possible (3P) reserves in the region (excluding Venezuela) remain unburnable the paper provides estimates by country. Our findings confirm that governments cannot rely on revenues from gas extraction if the objectives of the Paris Agreement are to be met. Instead, they need to diversify their fiscal and export strategy away from dependence on gas production. More generally, climate objectives, energy policies and fiscal strategies need to be consistent. We find that natural gas production in Latin America and the Caribbean and associated public revenue are strongly impacted by decarbonization efforts. The more stringent climate policy is, the lower the production of natural gas exporting natural gas does not help the rest of the world reduce greenhouse gas emissions. When global climate policy is stringent, incumbent producers and natural gas associated with oil dominate production, drastically limiting opportunities for new gas production in the region. Cumulative fiscal revenues from natural gas extraction in the region range between 42 and 200 billion USD by 2035. The lower end of the range reflects global climate policy consistent with 1.5C warming. In this case, up to 70% of regional reserves remain unburnable (the paper provides estimates by country). Our findings confirm that governments need to diversify their fiscal and export revenue strategy away from dependency on gas production. Instead, the focus of energy investment should be on the development of wind and solar, and the electrification of energy uses in other sectors, particularly transport, buildings, and industry.
Publications
Published 2021
Implications of the Energy Transition on Employment: Today’s Results, Tomorrow’s Needs
As countries progress in their energy transitions, new investments have the potential to create employment. This is crucial, as countries enter their post-pandemic recovery phase. An opportunity also arises to close the gender gap in the energy sector. However, how much will need to be invested, how many jobs will be created, and for whom, remain empirical questions. Little is also known about the needs of each country and their sectors in terms of future skills and training. The present work sheds light on these questions by carrying out a harmonized firm-level survey on employment in Chile, Uruguay, and Bolivia. Findings are manifold. First, firms in emerging sectors such as energy efficiency, electric mobility, battery, storage, hydrogen, and demand management, create more direct jobs than generation firms, including renewables. Second, these firms also have the potential to create employment that is local, permanent, and direct. Finally, they can contribute to closing the gender gap. However, this employment creation will not come on its own and will not be equal between countries. It will require improving the workforces qualifications and considering each countrys labor market and market structures specificities.
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