IMF says climate change is a risk to the global economy and calls for unity of China and US – 07/04/2021 – Market

Climate change is a risk to economic and fiscal stability and it is necessary to join the efforts of antagonistic powers, such as the USA and China, to accelerate the transition to a sustainable economy and avoid new crises.

The assessment is by the director-general of the IMF (International Monetary Fund), Kristalina Georgieva, during a debate on Wednesday (7) with John Kerry, special envoy for the climate of the Joe Biden government.

“Climate change is an increasing risk for macroeconomic stability and fiscal stability, but at the same time, actions such as investment in clean technology and resilience for climate sectors generate sustainable growth and jobs,” said the economist, who focused on the urgency of climate change. measures.

“This pandemic has put us on a ‘don’t play with nature’ warning and has also shown us that we are in this together and that we have to work together to achieve a more resilient world.”

Kerry, for his part, admitted that the United States needs to do a better job of reducing carbon emissions – the country is the second largest pollutant in the world, behind only China – and said the White House wants to work together with Beijing, without reluctance against Chinese growth.

In the evaluation of the American, it is necessary to ensure that mistakes of the past are not repeated and that the investment is in clean and renewable energy.

“Of course China has to continue to grow, we are not reluctant to do that, but we want to work with China and other countries to ensure that development is different, not with the mistakes we made [no passado]”, added Kerry, highlighting the investment in clean energy.

According to the American, 30% of carbon emissions come from China and, if the country does not decrease this level by 2030, the world will lose the ability to hold global warming at 1.5 degrees Celsius and zero the greenhouse gas emissions. greenhouse until 2050.

“We are far behind […] The USA is number 2 in emissions and we need to do a better job to reduce more, “he said.

Kristalina highlighted the risks of neglecting climate change and said that it is necessary to redirect investments from the global financial system to support the poorest nations, which are hard hit by the impact of global warming.

“This is the IMF: stability, jobs and growth, which is why the climate is now in the DNA of our institution and at the heart of our work when we have political discussions and debate how we can be more successful with mitigation strategies. [dos efeitos do aquecimento global] and adapting the economy. “

In Kristalina’s opinion, when the risks of global warming are opened up with transparency, investors are more encouraged to put money in stocks that will accelerate the economic transition.

“When we create transparency around climate risks, investors are in a good position to judge [onde colocar dinheiro].​”

Biden’s secretary also said that this is the decade to make changes and deliver results, a speech he has repeated in his public appearances, classifying the current process as the greatest economic transformation since the industrial revolution.

“It is happening now, the market is moving now, with people buying more sustainable products,” he declared.

Hours earlier, at a press conference, Kristalina was even more assertive and said that this was the year of change.

“2021 has the potential to be ‘the’ year of climate action […] We have scientists talking loud and clear that we need action. “

For her, the role of the Fund, which holds its spring meetings this week, is to help recognize that progress needs to be made faster than the current pace, trying to find funding to build the transition to a green economy with growth and employment benefits , and ensure that the transformations are effective, working together between countries.

“It is very important to recognize that dealing with this crisis is walking and chewing gum at the same time.”

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