AGENDA. 1. Forest industry in Argentina. 2. Forest industry: New Policies and Strategies. 3. Bioeconomy Argentina Program for Europe

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2 AGENDA 1. Forest industry in Argentina 2. Forest industry: New Policies and Strategies 3. Bioeconomy Argentina Program for Europe 2

3 Competitive production advantages NOA ha NEA ha Centro ha Delta y B.A ha Million USD one province The natural resources and market characteristics of the country make it very attractive for investment capital AVAILABILITY OF LAND with high aptitude for plantation, without competing with other agricultural productions. MINOR TREE CUTTING SHIFTS than other countries: 8 years for eucaliptus and 12 years for pines. Patagonia ha Total of 1.2 Million Ha. Planted Forest LEGAL FRAMEWORK: Law (plantations investment promotion) with fiscal taxation for forestry investments for up to 30 years 3

4 Forestry Outlook Argentina has one of the best annual growth rates in the world ha/year Eucalyptus Conifers Source: Ministry of Agribusiness 4

5 OPPORTUNITIES IN FOREST INDUSTRY SECTOR 1. Local market with UNSATISFIED DEMAND for brown paper. Argentina imports USD 900 Million of brown paper. Projects are been evaluated. 2. Sectorial agreement signed for the construction of social housing made in wood. PLAN: 10% OF TOTAL HOUSES MADE OF WOOD. 3. Use of wood for the generation of renewable energy from forest biomass. RENOVAR II PROGRAM 100 MW BID FOR BIOMASS.

6 Argentina s Value Proposition DRIVERS Argentina's weather and land conditions are excellent TO DEVELOP LARGE SCALE COMMERCIAL PLANTATIONS, thus allowing for lower production costs and a good competitive position for export business. An additional opportunity lies in Mesopotamia (north-east of Argentina), where there is a large amount of wood READY TO BE HARVESTED in the next few years, very close to the water. There is CAPABILITY and know-how to enable the quick set up of large industrial projects. The country could quickly double its planted area WITHOUT COMPETING WITH NATIVE FOREST or land for food production. Local market is in short supply of papers, specially brown paper, domestic sales are an IMMEDIATE POSSIBILITY. Utilization of wood BIOMASS FOR RENEWABLE ENERGY and pellet production (domestic use &export). 6

7 AGENDA 1. Forest industry: in Argentina 2. Forest industry: New Policies and Strategies 3. Bioeconomy Argentina Program for Europe 7

8 Forestry - New Policies Legal Aspects - Law extended by Law 26432: Investment promotion for cultivated forests. - Law regulated by Dec. 820/2016: Land ownership, Law for foreign investment - Law of Renewable energies. - New regulatory framework to promote investment via Public-Private Partnership (PPP) in infrastructure. Taxation - Removal of export taxes and import restrictions. - Import tax reduction for capital goods. Energy and Infrastructure Social Environmental - Ministry Agribusiness & Ministry of Interior, Public Works and Housing have signed a framework agreement to build wooden houses. - BelgranoInfrastructure plan: specially designed for the north provinces, including new roads, railway network, water way, electricity, education. - Promote the pellets industry for domestic use & exports. - Communication strategy : Informing the society the benefits of this industry: recyclable, generates clean energy, creating jobs, pollution clearance certificates, International labels for sustainable forest management (FSC, PEFC). - Forestry community agenda. - Availability of skilled workforce. 8

9 Next main topics to work on: A) Regulations to reduce taxes 1) Competitive cost B) Cost associated with Human Resources 2) Logistic: New investment in ports to reduce the cost of operations for each container (from USD to 700 USD each nowadays and achieve 200 USD/each) 3) Project to study and remake the Railway Ferrocarril Urquiza

10 New Laws Main Benefits Law extended by Law Nonrefundable Economic Support (AENR) for: Forest Plantation: - until 300ha/year = 80% of the estimated cost. - between 300 to 500 ha/year = 20% of the estimated cost. Handling Forest: - until 70% of the estimated cost. Enrichment of native forests. Tax benefits: - Stamp tax exemption. - No Tax increase commitment for 30 years (except VAT). - VAT Early Refund. - Forestry appraisal. For industrial investments: - Accelerated capex amortization to reduce income tax base. Law regulated by Dec. 820/ Details how the ownership of rural land shall be counted: condominium, dismembered and antichresis domain, revocable domain (with specific reference to the trust), real estate foreclosures, acquisitions as part of insolvency or bankruptcy, usurpation and foreign legal. - Determine how the term "foreign legal person" will be interpreted. Add as a criterion for calculating equivalence the "different types of exploitation that can be given to rural land". - It sets out how the limit of 1000 ha or equivalent shall be calculated. - Clearance Certificate not required for land located within "Industrial Area or "Industrial Park". In addition, that surface will not be counted for the purposes of the limits set by law. Law National Promotion for the Use of Sources of Renewable Energy: Recently approved with high degree of support from all political Parties. - Set a target of 20% of Renewable Energies in the electric power matrix by 2025 (currently under 2%). - Exemptions from import tax on capital goods and equipment for renewable energyprojects. - VAT Early Refund - A Trust Fund for Renewable Energy Development (Foder) is created. National Treasury resources for the fund will be at least 50% of the saved in fossil fuels with renewable projects. - It allowed to sell energy in dollars for 15 years at firm price.

11 AGENDA 1. Forest industry in Argentina 2. Forest industry: New Policies and Strategies 3. Bioeconomy Argentina Program for Europe 11

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13 MINCYT FEDERCHIMICA The agreement signed in March 2017, was the starting point for the Bioeconomy Argentina Programme for Europe

14 Technology Transfer & Promotion of Joint Ventures Europe Promotion of StartUps International Unit of Technology Link Link with Investment Funds Argentina Academic and Scientific Link in Bioeconomy Projects

15 ARGENTINA EUROPE MFA AGENTINA INVEST UTT Arg MP-MA-MINCYT UTT Arg UTT Arg ARGENTINEAN BIOECONOMY INITIATIVE UTT Arg UTT Arg UVTI INSTITUTION OF ITALY INSTITUTION OF FINLAND INSTITUTION OF NORWAY INSTITUTION OF GERMANY MP: Ministry of Production MA: Ministry of Agroindustry MINCYT; Ministry of Science, Technology and Productive Innovation MFA: Ministry of Foreign Affairs

16 Bioeconomy sectors

17 NEXT STEPS!

18 Thank you for your attention Edificio Republica, Tucumán 1, Piso 12, C1049AAA Ciudad de Buenos Aires, República Argentina Teléfono: