February 1, 2023

The director general of the International Monetary Fund warned Friday in Davos that the race to provide subsidies to encourage green industry development in developed countries could “harm emerging markets and the developing world.”

Kristalina Georgieva stated during her participation in one of the workshops organized during the World Economic Forum: “If we strive (promote) an industrialization plan (of the country) and do not think about emerging markets, we will all be vulnerable to warming.”

The United States has adopted a plan that provides billions of dollars of subsidies to manufacturers that make electric vehicle batteries and solar panels on American soil, especially in response to China’s strict subsidy policy.

For its part, the EU is trying to organize to help its industry in the face of an energy crisis and resist US and Chinese subsidies that could lead to some factories leaving European lands.

“What I fear most is that something wonderful in principle — to accelerate the transition to a green economy through the use of public money to stimulate private investment … could harm emerging markets and the whole world,” Georgieva said, referring to this links between the US and Europe. politicians.

And she added: “If technology transfer is part of your plan, then yes, we will succeed” in achieving the goals of international climate change.

In turn, French Economy Minister Bruno Le Maire said: “The main issue is not in China in the first place, not in America or Europe. The main problem is, first of all, the climate.”

Meanwhile, youth activists including Greta Thunberg took part in a small protest in Davos, accusing the global elite gathered in the Swiss city of not doing enough to save the planet.

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