Uruguay’s public and private sector remain in an incipient stage of integrating sustainable, green or climate considerations in investment's decisions and portfolio allocations. This is mainly due to a lack of understanding of the risks and opportunities that the climate change agenda may have on their business models, and implications of integrating these into their processes and management. There is also reduced available information and financial mechanisms to incentivize private investments for the implementation of climate action and the private sector organizations, who are increasingly interested in incorporating climate-related risks and opportunities, lack capacities and knowledge on frameworks, data, methodologies and tools to do so.

This Readiness proposal aims to contribute to an increase in financial flows from both private and public sectors towards climate action aligning with Uruguay’s commitments on GHG emissions and adaptation targets in its NDCs through:

• building capacities of the financial and nonfinancial private sector to increase awareness and to integrate tools related to green/climate finance;
• improving the country’s information on the financing gap and opportunities for private investment for the NDCs;
• leveraging the green finance taxonomyfirst phase currently under development and advancing its implementation; and
• developing guidance and a proposal of regulation for the financial sector to incorporate climaterelated risks and opportunities to their business models and reports.