He Inter-American Development Bank (IDB) analyzes granting preferential credits to countries that meet environmental goals, a mechanism that was requested by the government on several occasions, the last claim of which was made by the president Luis Lacalle Pou when speaking before the General Assembly of the UN.
Lacalle Pou He asked United Nations a “system of rewards and punishments”, something similar to what the Minister of Economy and Finance, Azucena Arbeleche, who at the same time requested “specific resources” from developed countries to promote the green agenda.
With the mind set on a transition towards renewable energy, he IDB launched today in Brazil a $250 million financing program to promote sustainable bioeconomy and infrastructure initiatives for the Amazon. Days ago, next to the European Union, also announced a contribution of 1.07 million dollars to accelerate sustainable investments in Mexico.
With this scenario in mind, the multilateral organization estimates that to meet climate objectives in the region, it will be necessary to reorient annual investments of between 7% and 19% of the GDP Latin American.
The IDB highlighted the example of Uruguay
He IDB It also works on debt instruments with climate objectives, such as the green bond issued by the government. “In Uruguay, If the title they issued reaches the goal, the cost will be reduced,” highlighted the president of the organization, Ilan Goldfajn, in an interview with Infobae.
goldfajn He described it as an example and replicable. “Those things can be replicated, the indicators can be very similar. If a country, in our loans, reaches a goal that is more ambitious, we would reduce the cost,” he highlighted and said that the difference “has to be concessional financing”, coming from governments or the IDB.
The government and a long-standing claim towards multilateral organizations
From the government, there were several claims linked to the green transition raised towards multilateral organizations and developed countries. By case, Lacalle Pou highlighted the sustainable bond during his speech before the General Assembly of the UN and stated: “We are convinced and understand that the same system should be applied to international loans, market access, quotas and tariffs.”
For the president, the objective is “not only the vocation to punish non-compliance, but to reward those who have processes that are friendly to the environment, that are sustainable.” On the other hand, he warned: “Thanks to obtaining these standards, we are often left out of a certain system of preferences, of very important commercial relationship instruments.”
In the same sense he spoke Arbeleche during the conference CAF “European Union and Latin America and the Caribbean: a joint agenda for development”, where he considered that “investors and multilateral credit organizations must assume greater responsibility to optimize financial returns and carry out the necessary transformations.”
In this regard, the minister anticipated that she works together with the world Bank in the design of “a sovereign loan that will reward, through a reduction in the interest rate, the fulfillment of climate objectives” and detailed: “For us it is key that the reduction in the interest rate is achieved through specific resources from developed countries, and not only from the balance of the World Bank”.
Source: Ambito
