Why promoting environmental economic activities is key against climate change

he Climate change It needs quick action and these in turn require Strong investments To reduce emissions and promote adaptation to the effects of global warming that are already being felt in many parts of the world. according to United Nations (United Nations)The benefits you will gain from these investments will far exceed any initial costs.

According to October 2019 data from global bank, The world will need to make significant investments in infrastructure over the next 15 years, on the order of $90 trillion by 2030, but it can recover these investments because of the infrastructure shift. Environmental economics It could open new economic and labor opportunities. An investment of $1 can translate into profits of $4.

According to what the United Nations reported on its website, the report The new climate economy The report published in 2018 reveals that bold climate action could achieve direct economic gains of $26 trillion by 2030, compared to the current situation, and explained that this is one of the most conservative estimates.

During the first years of the pandemic, pollution decreased due to the cessation of production and the movement of people, but Covid-19 did not stop climate change, as this decrease in emissions was temporary and then returned to the rise to pre-pandemic levels. The beginning of the health crisis. This poses a serious danger represented by the much-feared rise in global temperature exceeding 1.5 degrees Celsius, which should not be exceeded, according to the Paris Agreement, because it will lead to devastating effects.

The United Nations noted, “Investment decisions now will determine whether we create or destroy wealth, and identify potential paths to prosperity.” It is becoming increasingly clear that the world cannot afford to burn all its fossil fuel reserves if we are to succeed in limiting climate change to sustainable, habitable levels. The long-term economic reality is that only a small fraction of proven fossil fuel reserves can be burned if we want to keep temperature rise to 1.5°C.

As part of financing efforts Move to clean activities, Investments in non-polluting activities in Latin America and the Caribbean were announced through a consortium between the private sector of the Inter-American Development Bank (IDB Invest) and the United Kingdom Sustainable Infrastructure Program (UKSIP).

The goal is Support reliable investments In small and medium enterprises Addressing climate change And Reducing poverty Building on the work already underway to help the region build a sustainable future.

Minister for Development, British Foreign Office, andrew mitchell, He met in London with the President of the Islamic Development Bank, Ilan Goldwagen, and CEO of IDB Invest, James ScrivenTo complement the UK's membership of the group that provides nearly £5 billion of annual financing (about $6 billion) to businesses across the region. Membership will ensure the UK is able to influence the investments the Foundation makes annually across the region and advance the UK's development goals through the Bank's work.

The UK and IDB will build on their existing partnership through the UK Sustainable Infrastructure Program (UKSIP), which helps… Mexico, Colombia, Peru and Brazil To reduce their emissions and move to sustainable infrastructure. UKSIP's support for IDB Invest's projects is expected to raise more than £150 million of private funding for the project. Developing two solar power plants and purchasing 400 electric buses.

The planned solar power plants will produce about 440 gigawatt hours per year, which is equivalent to the required energy 230 thousand homes in Colombia. Regarding environmental electric buses, it is estimated that they will save some 500 thousand tons of carbon dioxide During its useful life, the equivalent of removing 100,000 cars from the streets for a year.

British Development Minister Andrew Mitchell noted that “unlocking private sector investment in the Caribbean and Latin America is vital to meeting the world’s needs.” UK international development strategy. The partnership with IDB Invest will help us encourage private sector investment, Alleviating poverty and addressing climate change “In an area suffering the most severe effects.”

According to a statement from the British Embassy in Buenos Aires, in the past decade IDB Invest has listed more than £5 billion of bonds on the London Stock Exchange, demonstrating the strength of its partnership with the City and London's role as the world's leading center for… Green financeAnd occupy first place in the world, for the third time in a row, according to Global Green Finance Index.

Last year, International Investment Corporation, the UK's development finance institution, made its first investment in the Caribbean in more than 20 years, investing alongside IDB Invest and local partners with the aim of generating thousands of jobs and supporting economic growth. . Throughout the region.

During their meeting, Minister Mitchell and President Goldwagen agreed on the key role of the World Bank Group in increasing the volume of aid Global climate ambitions. The Minister outlined the UK's commitment to international investment in green business and stressed its importance in addressing strategic vulnerability to climate change.

The UK's International Development Strategy involves helping countries enhance their energy security and provide affordable, reliable and clean energy for all, using a range of development finance tools, including the UK's international investment trust.

The IDB Group is the largest source of development finance for Latin America and the Caribbean, providing approximately £19 billion to the region in 2021. It has two main arms: the Inter-American Development Bank (IDB), which lends to sovereign governments; and the independent investment body known commercially as IDB Invest, which invests in the private sector.

The IDB and the Islamic Development Investment Bank are said to be partners in achieving the UK's goals in Latin America and the Caribbean, which include promoting democracy and economic growth, preventing organized crime and taking action on climate change.

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