Uruguay publishes the first Annual Report of the Sovereign Sustainability-Linked Bond

UNDP carried out the external verification of the two Key Performance Indicators (KPIs)

June 1, 2023


Montevideo/New York, May 31st., 2023. The Uruguayan government published today the first Annual Report of the Sovereign Sustainability-Linked Bond (SSLB). In this context, the United Nations Development Program (UNDP) is pleased to announce  the release of the first annual Verification Report of the Sovereign Sustainability-Linked Bond (SSLB) which tracks the 2020-2021 Key Performance Indicators Report (KPIs). The KPIs measure the progress of two important sustainability factors: the reduction of greenhouse gas (GHG) emissions and the preservation of native forests as per the methodologies established in the SSLB Framework. This report marks a significant milestone in Uruguay's commitment to sustainability and climate action.

The first KPI refers to the reduction of aggregate gross GHG emissions (CO2, CH4 and N2O) per real GDP unit in comparison to the reference year of 1990. The second KPI aims to maintain the area of native forest in Uruguay, with respect to 2012, the reference year. Both KPIs are aligned with the Nationally Determined Contributions (NDC) to the Paris Agreement and are essential for achieving Uruguay's sustainability targets.

To ensure transparency and accountability, the Government of Uruguay requested UNDP to fulfill the role of external verifier of the KPIs. A qualified and multidisciplinary team of UNDP experts conducted a thorough verification process between January and May 2023. This team possesses extensive experience in reviewing National Greenhouse Gases Inventories (NGHGI), estimating forest area changes and evaluating forest reference emission levels.

The recently released Verification Report confirms that both KPIs have been prepared in aaccordance with the methodologies established in SSLB Framework. The report also acknowledges that the KPIs adhere to the methodology and good practices outlined in the 2006 Intergovernmental Panel on Climate Change (IPCC) Guidelines for the preparation of National GHG Inventories. Additionally, the second KPI is consistent with the relevant provisions and guiding principles of the Methods and Guidance (MGD) of the Global Forest Observations Initiative (GFOI)”.

Furthermore, the Emissions Report, the Native Forest Report and the KPIs Report, which are integral parts of the SSLB Annual Report, comply with the quality principles of transparency, accuracy, consistency, comparability and completeness established by the IPCC.

"UNDP appreciates the confidence of the Government of Uruguay to contribute to the external review of the Key Performance Indicators of this innovative bond, which will serve as an inspiration to other countries seeking to roll-out innovative financial mechanisms that can drive forward their national climate and sustainable development strategies", said Achim Steiner, UNDP administrator.

UNDP, a global advocate for sustainable development, provides technical knowledge and advice to governments to enable the issuance of new financing instruments that contribute to the achievement of the Sustainable Development Goals (SDGs).

Alfonso Fernández de Castro, UNDP Resident Representative in Uruguay, affirmed the UNDP's unwavering commitment to support Uruguay throughout the various stages of this innovative bond. He highlighted the bond's ability to align vision, action, and incentives regarding climate change while fostering a vital discussion on public goods financing.

The release of the first Annual Report on Uruguay's Sovereign Sustainability-Linked Bond signifies a significant step toward a sustainable and resilient future. Uruguay sets an example for other nations seeking to implement innovative financial mechanisms that promote climate action and sustainable development.

Contact information:

New York:

Ana Maria Currea, ana.maria.currea@undp.org, +202309 4981


Esteban Zunin, esteban.zunin@undp.org, +598 98802021