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The Minister of the Economy, Martin Guzman, warned this Sunday, during an international conference in Venice, that the climate change and the Economic inequality “are the two great challenges facing humanity“At present and points out, in this sense, that” the transformation of production for environmental sustainability is not only a matter of development but also of balance of payments stability. “
The official participated this Sunday in a meeting called by Italy, in his capacity as president of the G20, under the title of International Conference on Climate Change, in which he answered questions from the moderator of the event. There he recognized that “climate change is one of the defining aspects of our time, probably one of the two great challenges facing humanity today”.
The other, he added, “is inequality”. “And they are linked. They are the consequence of the way we organize our economic systems”, explained the minister.
“In the most advanced economies, countries have more capacity to tackle climate action, but it is possible to write the rules of the world economy to improve the problems of climate change and global inequalities “said Guzmán, who noted that “it is very important that we work on it”.
“There is a debt of the countries that have contributed the most to climate change with other countries “, underlined the head of the Palacio de Hacienda, while warning that” there are deep asymmetries between the countries in terms of capacity for a sustainable productive transformation and if we do not act, they will go away. deepen “.
Regarding a possible approach to this problem, he felt that there is two pillars of action. The first, he said, “is one of the carbon price which must be supplemented by regulatory measures.green investments“On both fronts” there are very important asymmetries between the nations of the world in terms of scope, “he said.
Faced with this, it is necessary to take into account “that there will be a learning curve when it comes to producing greener. Productive transformation, if not comparable, will generate greater inequalities in the productive capacities of nations, ”Guzmán said.
If developing countries “go slower,” he explained, “they will also learn more slowly,” so “although higher carbon prices in advanced countries will help, it will also help. we must have the elements to promote the productive transformation that is required in developing countries», Declared the Minister by analyzing the initiative of the European Union to set prices for carbon emissions as a tool to accelerate the energy transition.
Regarding the second principle, that of green emissions, “we are also confronted with the problems of asymmetries”, he admitted. “The financing conditions of developing economies and advanced economies are very different, both in terms of public funding and private funding,” he warned.
In this context, Guzmán declared that “productive transformation for environmental sustainability is not only a question of development but also of balance of payments stability. Because if we move forward with carbon prices and the developing economies do not adapt their production structures, they will be faced with balance of payments problems. For this reason, we believe that it is also a question of fitting into the theme of the IMF ”.
At the end of the conference, when asked about the extension of Drawing Rights (SDRs), the currency of the IMF, Guzmán said that “what we have been discussing over the past two days, the idea of creating at the IMF a Fund for resilience and sustainability with the allocation of SDRs which are issued to constitute a new line of credit at the best conditionsThis is very positive, because this rule seeks to a certain extent to correct financial asymmetries if this fund could be used to finance the measures necessary for productive transformation ”.
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