Making the Green Transition Work for People and the Economy 2025

In Argentina, limited investment capacity and access to finance are the most pressing barriers in climate competitiveness, cited by over 60% of executives – nearly double the global average – reflecting broader challenges in small- and medium-sized enterprise (SME) financing. Regulatory uncertainty closely follows, affecting about 52%, in line with regional Latin American trends. Slow ROI rounds out the top three hurdles. Risks to equity challenges from the green transition focus heavily on financing difficulties, with 81% worried about lack of capital for green investments, and 64% concerned about technology and know-how, underscored by low national R&D spending at just 0.55% of GDP . In Indonesia, regulatory uncertainty and compliance burdens are top among barriers to climate competitiveness, cited by more than a third of surveyed executives. High energy and commodity costs follow closely, reflecting exposure to global commodity prices and rising cost-of-living challenges. Limited supply chain reliability for sustainable products is a significant barrier (29%), above global averages. A concern unique to Indonesia from the survey results is limited access to green skills (23%). Similar to other countries in this archetype, constraints on access to financing and modern green technologies emerge as top risks to equity in Indonesia’s green transition.In Mexico, regulatory uncertainty and compliance burdens are the top barrier to competitiveness in the green transition, flagged by three-fourths of executives surveyed – far above global benchmarks. Slow ROI (39%) and organizational resistance to change (30%) also rank high. Energy costs are less concerning (24%), aided by broad social protection coverage. Equity risks focus heavily on financing (87%) and technology know-how (75%), while fewer worry about raw material access (29%) or worker displacement (11%), reflecting a relatively stable social backdrop in the transition. In South Africa, more than 60% of executives cite regulatory uncertainty and compliance burdens as the main barriers, followed by high energy and commodity costs. Limited supply chain reliability and affordability for green products are also flagged as competitiveness challenges. Indicative of just transition challenges in South Africa, workers’ displacement ranks third, with 59% expressing concern – notably higher than the global average. The dominant risk remains the lack of capital and knowledge for green investments, affecting almost 88% of companies, signalling the need for policies that improve access to finance and skills. Making the Green Transition Work for People and the Economy 31