The World Bank has developed an innovative financing mechanism to incentivize countries to achieve ambitious climate and environmental conservation targets. Uruguay is the first country in the world to use this innovative mechanism. It consists of the performance-based reduction of interest payments on a US$350 million loan to support policies that promote a greener economy and resilient economic growth.
For Uruguay, this could mean a reduction of up to US$12.5 million in loan interest payments if it achieves a verifiable decrease in methane emissions from livestock production.