Challenges of green finance in Latin

The climate crisis is showing a terminal character. It is widely recognised that climate change and financing are closely related, and that more funds are needed but that a fresh look is also needed. To think the problem of green financing in isolation does not work. Capital inflows coming into Lati...

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Autor principal: Stanley, Leonardo Ernesto
Publicado: Edward Elgar Publishing Limited 2024
Acceso en línea:https://nulan.mdp.edu.ar/id/eprint/4304/
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Sumario:The climate crisis is showing a terminal character. It is widely recognised that climate change and financing are closely related, and that more funds are needed but that a fresh look is also needed. To think the problem of green financing in isolation does not work. Capital inflows coming into Latin America are far from consistent with a pathway to a low-carbon emission and climate resilient development. Climate change and macroeconomics interactions can no longer be neglected, making imperative to evaluate a series of political proposals as old instruments might match new problems. However, when discussing ideas and instruments it is essential to recognise the specificity of Latin America. Macroprudential regulation should aim at preventing the generation of a "fossil asset bubble". Authorities should complement monetary tools with a new approach on foreign direct investment as to avoid "the risk of a more abrupt and widespread correction in financial markets as the financial risks from climate change should be re-evaluated".