Uruguay demands financial rewards for not polluting and complying with environmental commitments

RIO DE JANEIRO, BRAZIL – “One way to do this is to link the cost of credit for countries to their success in meeting climate targets under the Paris Agreement. In particular, countries that meet their commitments and show a positive environmental performance should pay lower interest rates, thus freeing up resources for more ambitious goals,” said Uruguay’s Economy Minister Azucena Arbeleche.

URUGUAY IS FIRM

The Minister has been firm at COP26, considering that Uruguay is among the countries that have complied the most in terms of C02 emission reductions and other pollutants such as methane, an issue that was a key element in her speech, demanding lower interest rates and better conditions for this reason.

“In parallel, we will propose that loans from multilateral organizations also incorporate environmental indicators aligned with the Paris Agreement, differentiating the costs of financing according to the contribution of countries to global public assets. Commitments must be demonstrated and environmental integrity must be rewarded,” Arbeleche said in Glasgow.

CLIMATE-RESILIENT FINANCIAL SYSTEM

In another statement, she said that “we have made progress in developing a financial system that supports a net zero, climate-resilient future. In the case of Uruguay, it is the first time we included articles related to environmental protection criteria in economic policy in the National Budget Law, known as the Helsinki Principles. On the other hand, the Central Bank is now part of the Network for Greening the Financial System.”

“U.S. Treasury Secretary Janet Yellen said in a previous panel that we are at a critical point and that Finance Ministers play a key role; that is what we must do,” Arbeleche said.

Speaking with the Minister, Yellen praised Uruguay’s work to incorporate climate change factors into the design of economic policy.

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