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Law No. 16.906 of 7 January 1998 on the Protection and Promotion of Investment, implemented by Decree No. 455/007 of 26 November 2007, sets the general framework for investment incentives and promotion in Uruguay, mainly in the form of tax breaks for activities which, inter alia, utilize cleaner technologies

Forests planted in priority forest zones, as well as the land occupied by forests, are eligible for national and departmental tax exemptions, including artificial forests for conservation or commercial purposes and natural forests for conservation purposes

Companies producing biodiesel and ethanol are eligible for exemption from the wealth tax (IP) on fixed assets and for 100 per cent exemption from the tax on income from economic activities (IRAE) for a period of ten years, while Decree No. 354/009 promotes several activities, including generation of electricity from non-traditional renewable sources; production of energy from renewable sources; transformation of solar power into thermal power; and conversion of equipment and/or incorporation of processes designed for efficient use of energy

In 2011, the Law on Public-Private Participation (Law No. 18.786 of 19 July 2011) was approved and establishes the regulatory framework for public-private participation (PPP) contracts, including contracts regarding energy infrastructure and disposal and treatment of waste

Subject to authorization by the Ministry of Industry, Energy and Mining (MIEM), private companies are also permitted to produce biodiesel and alcohol fuel, while Decree No. 377/009 of 14 August 2009 encourages the National Electricity Plants and Transmission Authority (UTE) to enter into contracts with small-scale generating plants that use Uruguayan renewable sources and Decree No. 173/010 of 1 June 2010 authorizes subscribers connected to the low-voltage distribution grid to install renewable wind-power, solar, biomass or mini-hydraulic generating equipment

The main changes proposed in the draft Law on the Rendering of Accounts and Balance of Budget Execution for the 2010 financial year (Law No. 18.834), include among other things, the inclusion of environmental sustainability criteria in government procurement

Law No. 17.164 of 2 September 1999 excludes plants, animals and essentially biological processes, as well as inventions whose commercial exploitation must be prevented in order to protect public order, morality, human and animal life or health or to protect plants or the environment from patentability

Uruguay's agricultural strategy for the period 2011-2015 is aimed at enhancing agricultural and agro-industrial competitiveness and ensuring that development is sustainable from the standpoint of social integration, environmental conservation by promoting the use and rational management of renewable natural resources, helping to preserve biological diversity and adapting to and mitigating climate change

Uruguay notified the WTO that domestic support was being provided for research, extension and advisory services, pest and disease control, inspection services, marketing and promotion services, and payments within the framework of environmental programmes, which are deemed to be green box measures

The Forestry Law (Law No. 15.939 of 28 December 1987) promotes the sustainable forest management through protection, the enhancement, expansion and creation of forest resources, and the development of forest industries and the forest economy in general