The fertilizer industry is a significant source of greenhouse gas emissions, driven largely by fossil fuel-based ammonia production. With long-lived infrastructure and high investment costs, the sector faces structural barriers to adopting cleaner technologies. Without dedicated support, it will remain locked into carbon-intensive practices undermining global climate goals.

The project aims to reduce emissions in fertilizer production by constructing and operating a green fertilizer facility powered by renewable electricity. The facility will produce green hydrogen via electrolysis and use it to manufacture low-emission calcium ammonium nitrate (CAN) fertilizer, enabling a shift away from fossil fuel-based inputs. It will also showcase a viable pathway for decarbonising fertiliser production at scale, potentially helping to unlock future investments across Latin America.

GCF will provide USD 50 million in concessional finance to reduce the project’s cost of capital and support market competitiveness. The project includes a technical assistance component, led by IFC, to promote replication by developing open-access guidelines for financing green fertilizer projects, focusing on gender inclusion. Its large-scale demonstration effect positions it as a catalytic step toward decarbonising fertilizer production across the region.

ATOME Villeta Green Fertilizer (AVGF) Project

<p>Project information is sourced from Green Climate Fund. Please check terms of use for citation and licensing of third party data.</p>

Gender action plan for FP277: ATOME Villeta Green Fertilizer (AVGF) Project

Project

Paraguay

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An aim to achieve a quantifiable outcome within a given time-frame, set by an institution such as a national government.

Policy instruments are techniques or tools used by governing authorities to promote certain policies in order to achieve predetermined goals. Put simply, instruments are how a government tries to achieve its goals, with this taxonomy being focused on national policy instruments.

Risk is the potential for adverse consequences resulting from the dynamic interplay between (climate-related) hazards, exposure, and vulnerability of affected human or ecological systems.

Groups  of people who are adversely affected by climate change or the response to it

A set of principles, processes, and practices that build economic and political power to shift from an extractive economy to a regenerative economy.

Justice is the ethical and political framework that addresses fairness, including issues of responsibility, rights, and structural inequity.

Renewable energy means all forms of energy produced from renewable sources in a sustainable manner.

Fossil fuel is a generic term for non-renewable energy sources such as coal, fossil gas, and oil (including crude oil, and petroleum products), that can be used for electricity and heat generation. Fossil fuels are hydrocarbons formed from pressurised and heated organic material buried over millions of years.

Molecules in the atmosphere that play a key role in the greenhouse effect by trapping heat radiating from Earth’s surface.

Area of the economy in which actors engage in identical or related activities.

In human systems, the process of adjustment to actual or expected climate change and its effects, in order to moderate harm, increase resilience or exploit beneficial opportunities. In natural systems, the process of adjustment to actual climate change and its effects; human intervention may facilitate adjustment to expected climate change and its effects.

The management and allocation of funds, assets and investments to meet various objectives

People who are less able to respond to the effects of climate change due to having limited financial or physical assets

A loan is a policy instrument where funds are provided to a borrower with the expectation of repaying the principal plus interest.

Compulsory, required payments to the government that are levied more-or-less in proportion to the services provided. Fees and charges range from entrance fees to national parks, charges on land-based sewage discharge.

The processes through which enterprises can identify, prevent, mitigate and account for how they address their actual and potential adverse impacts. Due diligence is the idea that reasonable precautions should be taken to avoid causing harm to people, the environment, or society. It also involves identifying and mitigating risks before they occur.

Financial actors and resources that are primarily directed towards climate change mitigation, adaptation and compensation.

Dedicated pool of financial resources for climate-related projects.

Either money or something of monetary value is transferred between two or more organisations, people or countries.

Social inclusion is the process of improving the terms on which individuals and groups take part in society—improving the ability, opportunity, and dignity of those disadvantaged on the basis of their identity.

woman and genders outside of the gender binary

The activities of industries that transforms raw materials into finished goods through industrial processes.

The activities of industries involved in the production, distribution, and sale of energy, including electricity, gas, and renewables.

Activities that involve planning, designing and building infrastructure, residential, and commercial structures.

This sector includes firms and individuals offering specialised expertise in fields such as law, accounting, consulting, science and engineering.

the fair distribution of risks and opportunities of climate change and the transition to a regenerative economy, cognisant in particular of disproportionate impacts on vulnerable communities and the working class

Procedural justice means ensuring that decision making is safe, transparent and inclusive, emphasizing the agency and influence of vulnerable groups and those most impacted.

Any substance with chemical properties that can cause physical harm to people or damage the environment, including ammonia, carbon monoxide, phosphine, chlorine, arsenic, cadmium, mercury, pesticides, dioxins, microplastics, benzene, asbestos, aflatoxins, fluoride, methanol, and toxins from marine sources.

Gender action plan for FP277: ATOME Villeta Green Fertilizer (AVGF) Project

Target

Policy instrument

Risk

Impacted group

Just transition

Climate justice

Economic sector

Finance