The Minister of Economy and Finance, Azucena Arbeleche, called on the countries that make up the European Union (EU) to allocate “specific resources” that allow other nations to meet climate objectives.
Along the same lines, he highlighted the contribution of Uruguay to the promotion of “climate ambition through the use of innovative sovereign financing instruments”, referring to the issuance in October 2022 of the first global sovereign bond that includes financial incentives linked to climate indicators.
When speaking during the first informal ministerial meeting of Economic and Financial Affairs of the EU and the Celac, The leader proposed three concrete actions to address the agenda “from a multilateral perspective, with coordinated and concrete international cooperation.”
The first of these axes was that developed countries comply with “the commitment to allocate resources, whether through bilateral donations or multilateral organizations, so that other countries can meet climate objectives,” he said. Arbeleche.
During the event, which took place in Santiago de Compostela organized by the CAF – Development Bank and the government of Spain, He also urged developing countries to “support commitments to the Paris Agreement, with concrete measures that can be verified.”
Finally, the minister considered that “investors and multilateral credit organizations must assume greater responsibility to optimize financial returns and carry out the necessary transformations.”
Arbeleche highlighted the progress made by the government
In this context, the minister highlighted that “to contribute to this necessary dialogue, from Uruguay “We have advocated the convenience and possibility of fostering climate ambition through the use of innovative sovereign financing instruments,” when listing the government’s actions on climate.
On the one hand, he recalled the global sovereign bond linked to climate indicators issued by the MEF, while he anticipated that he works together with world Bank in the design of “a sovereign loan that will reward, through a reduction in the interest rate, the fulfillment of climate objectives.”
“A very relevant aspect is how this reduction in the interest rate”, admitted the leader and pointed out: “For us it is key that this is achieved through specific resources from developed countries, and not only coming from the balance of the World Bank”.
By putting our sights again on the actions of the European Union, concluded: “By supporting these types of instruments with specific resources, the EU and its members have a concrete opportunity to promote climate action, contribute to the reform of the global financial architecture that the challenges require, and move from words to action.” .