Opinion by Mathew Carr
Emerging countries are evidently sick and tired of being whipped by western markets over which they have limited control.
Just like the EU introduced carbon pricing in 2005 after adopting the euro in 2002, the biggest cash changeover in history, South America could follow.
Argentina, which is more indebted than Brazil, is seen seeking talks with that Southam counterpart on a currency merger — irritated about how it gets treated by the world’s current market structure that’s dominated by USD.
Many emerging nations have suffered badly because of distant war in Europe drived also by NATO and political stupidity in an increasingly unimportant former colonial overlord…not-so-great Britain.…which caused interest rates to surge, perhaps unnecessarily.
The US hiked rates, blaming ghost-like inflation that should have reversed as natural gas prices plunged back below pre-war levels.
It’s enough to make any thinking emerging country that the current system isn’t fit for purpose.
South America has abundant natural resources to leapfrog many polluted OECD petroleum states.
Escriben Lula y Alberto Fernandez: Relanzamiento de la alianza estratégica entre Argentina y Brasil | Perfil
Translation from Google: Lula and Alberto Fernandez write: Relaunching of the strategic alliance between Argentina and Brazil | Profile
Carbon markets could also form in Africa, Asia and North America.
Of course, having a global carbon price would be better.
Otherwise, those with the highest carbon price might enjoy the most inward investment.
That’s because pension investors don’t like climate risk.
Carbon permits can be traded in any currency. Why does it need to be USD or euro for that matter?