Green dreams: judging the BRICS bank climate ambitions
By Ed King
In the absence of low carbon stipulations, observers fear funds from the BRICS bank could flow into polluting coal power stations and other fossil fuels. These can be seen by developing countries as a cheaper way to stimulate economic growth in the short term than greener energy sources.
Mattia Romani, chief economist of the Korea-based Global Green Growth Institute says such fears are misplaced, however.
A long-term advocate of a fund run by major emerging economies, he describes its launch as “exceptional”, praising the verbal commitment to “sustainable infrastructure”.
“Countries understand that a new development bank cannot do anything else but put sustainability at the heart of what it does – particularly in infrastructure,” he tells RTCC.
“While no details on safeguards are allowed – my understanding with the conversations I’ve had with these countries is that they’re very serious about it.”
Romani argues it will create a “level playing field”, allowing developing countries an easier way to access to finance than they have traditionally enjoyed.