The economy can reverse the trends. A recent example is the creation of Sovereign Bonds in countries such as Uruguay, to cite a serious nation, that are tied to the commitment to reduce their emissions.

Prudently, Uruguay, hand in hand with its experienced Minister of Economy and Finance, Azucena Arbeleche, launched only 750 million dollars in Bonds (tied to the promise of reducing CO2 emission rates). This is an interesting solution in the world of finances.

Diego Balverde

It is clear that we are experiencing an environmental crisis right now and that it is not stopping.

Finance is the natural fixer for a system that has destroyed the integrity of the climate and ecosystems. 

The economy has the power to repair and destroy the environment, we choose the first! Economic decisions regarding environmental impact (positive or negative) are so important that they make viable not only the repair of the accumulated consequences of years without a

 axis, but they also provide benefit to promote innovation sectors that are based on sustainability.

So the environment is a fundamental part of the new economic policies, which are already being implemented to impact future 

 goals. Goals which all the inhabitants of this planet must adopt.

The economy can reverse the trends. A recent example is the creation of Sovereign Bonds in countries such as Uruguay, to cite a serious nation, that are tied to the commitment to reduce their emissions.

Prudently, Uruguay, hand in hand with its experienced Minister of Economy and Finance, Azucena Arbeleche, launched only 750 million dollars in Bonds (

tied to the promise of reducing CO2 emission rates

). This is an interesting solution in the world of finances.

It opens a new space within the economy in order to obtain a productive and thriving sector, and establishes a reference liquidity and a path through which to execute the energy transition depending on fossils. Uruguay has no doubts; knowing that long-term objectives are only effective if they start early.

With the help of technology there could be more, much more. The issuance of bonds at an ever lower rate if the renewable platform grows with compensations that when executed are accounted for as genuine investment.

How has the issuance of bonds increased thanks to technology?

The incorporation of technology in energy and environment increases the volume of the economy through this new generated flow, from which previously non-existent liquidity is obtained.

In this case, the applied technology means that climate compensations are directed straight to existing renewable projects in the country's active platform, which through geolocation increase the consumption of renewables by large emitters. Producing a double impact: immediate compensation and renewable consumption.

: Finally, the equation obtains the positive result, making the compensations punctually renewable.

These compensations, directed to renewables, are generating immediate positive impacts. They are reflected in the short and medium term in a greater volume of financial liquidity, within a sector of the economy that was not relevant as a collection item.

At the same time, the impact on the environment due to the consumption of fossil fuels is reduced (

which are imported and reduce the treasury of the countries' reserves when prices or international demands rise

When countries have greater availability of national energy generation through renewables, fiscal spending is reduced and the balance of monetary policy makes sense. Yes, you are in turn being irrigated by direct compensations, the volume of availability of growing the volume of renewables rises, because the compensations are direct investments in renewables.

This produces energy independence, which is achieved for the country (reducing consumption of imports), allowing at the same time the volume of investment and genuine work in these sectors to increase. 

This allows the increase in direct consumption in different areas of the population with employment access established by these new sectors and an income for the state in the collection of the benefits of these practices.

When we talk about the economy, we generally talk about the direct effects that it has on us and not the type of scope - positive or negative -. What can you give us?

The depth in the economy is given by the number of sectors it reaches and for that the scales are important.

In other words, a direct economy that involves few people has relative positive mobility. The industrial economy includes processes and other sectors that mobilize the chain.

In Uruguay, for example, the axis of the economy is not based on energy, much less on renewables.

But high energy costs liquefy company profits. If we add to this the fines for production emissions, "the productive and industrial system would be in danger".

If the Climate Compensations are directed to the renewable projects, in this way the renewable generation platform increases together with the liquidity through the compensations which are taken as investments in the sector immediately, which generates:

Genuine employment and consumption of this new workforce.

Reduction of subsidies and the desired energy independence is achieved (given the world's high prices for fossil fuels and the great demands for needs that they have on the European continent).

With the implementation of Efficiency plans in medium and long-term companies, we reduce the following items:

General Consumption (generating awareness).

Incorporating Habits, which reduce spending and produce savings.

Separation and Control of Waste, through mobile tools that measure our personal footprint (incorporated as habits).

What these individual and simultaneous practices generate is the efficiency that derives from

This is the Triple Impact Economy, because in the first item we offset emissions by directing the money directly to installed, approved, active projects and generating them to the network to reduce the stress of consumption supplied by fossil fuels.

At the same time, employment and an underlying volume in the economy are generated through the liquidity in these sectors.

Efficiency in the medium and long term causes society to be more aware of finding energy and financial 

 is the positive consequence of the economy of a country that does things objectively, following the logical steps of sovereignty over its resources.

For countries with greater sensitivity to the energy crisis, technologies were essential to correct the negative impact, turning it into a positive process. Raising funds from polluting emissions in the form of compensations, through the tokenization of emissions.

Instead of punishing, it was decided to educate and provide a space for negotiation between private parties (within the framework of anti-laundering laws) to execute the compensations. For many companies it gave them a role in the choice of projects and negotiation.

The benefit of the projects was correct, "finding the necessary financing and greater than expected on some occasions".

It is important to use the benefits of technology to reduce emissions so that renewable platforms grow, paving the way for a healthier and faster transition.

"Countries must take the economic returns of the Technological tools to generate income and financial stability in sectors where the Economy did not have it visible. This allows them to carry out a control process through a panel, which sensitively compiles the changes in the sector to help in decision-making. Technology is the logical solution to reducing emissions and the consequent Climate Change, with its increase in temperatures throughout the planet. Technologies allow us to monitor this to anticipate future problems and control rates reasonable, added to previously unforeseen income".

Congratulations to Technology and to Uruguay! 

illuminem Voices is a democratic space presenting the thoughts and opinions of leading Sustainability & Energy writers, their opinions do not necessarily represent those of illuminem.

The Economy has a critical role to play for the Environment

There are many absolute theories that have failed, but we are sure of something that on the path to decarbonization, the fight is being given by technology, through wind turbines and their constant advances, increasingly efficient and accessible solar panels, and reuse of waste like energy.

As a result of global warming and the serious climatic consequences, we must ask ourselves what we are doing well and what is wrong.

But we must also ask ourselves, what are we not doing so that the reduction of emissions is adequately controlled?

We are clear that technologies are giving their battle and fossils are leaving their mark, but what about funding?

Truly, because not much is known about the available technologies and the benefits of using them.

That's why revolutionary tools like digital offsets can quickly and transparently bring high-emitting companies closer to technologies that are reducing their impact directly and with extensive information so that the user or issuing company (negative word) becomes a COMPENSATOR without stigmatization involved, being a vital part of the TRANSITION.

For this, using technology we have managed to create tools to bring investments closer to real and active projects, with traceability, geolocation and real-time data.

This brings investments closer to the owners of renewable and clean technology in operation, who require more investment to continue balancing the planet favorably.

From TECHNOLOGY we are offering the way - easy, transparent and a few clicks for the solution.

Comprehensive platforms are the opportunity to leave behind many initiatives that never repaired anything.

Illuminem Voices is a democratic space presenting the thoughts and opinions of leading Sustainability & Energy writers, their opinions do not necessarily represent those of illuminem.

Technology as a means of change

There are people who are still unaware of the severe impacts of Climate Change or who, better still (for them), try to look the other way, so as not to recognize their NEGATIVE contribution to pollution on the planet.

They are not isolated events that impact nature and do not affect people, quite the opposite. The repeated changes in the climate are mostly expressed by climatic consequences, either in destruction or loss of spaces.




There are people who are still unaware of the severe impacts of Climate Change or who, better still (for them), try to look the other way, so as not to recognize their NEGATIVE contribution to pollution on the planet.

They are not isolated events that impact nature and do not affect people, quite the opposite. The repeated changes in the climate are mostly expressed by climatic consequences, either in destruction or loss of spaces.

Climate catastrophes have increased sharply in the last 20 years and here are the results.

The anomalies that we generate to nature through global warming and causing climate change, are not only expressed in catastrophes.

We see them most significantly in FORCED MIGRATION by the environment or known as "ECONOMIC MIGRATION".

"Quantifying environmental migration is a difficult task, due to the multiple factors that cause it, the methodological problems involved, and the lack of standards for data collection".

Some quantitative data exists on population movements within countries and, to a lesser extent, from one country to another caused by natural hazards.

However, in the case of migration caused by slow-onset environmental processes, such as drought or sea level rise, most of the existing data is qualitative and based on case studies, with very few comparative studies. .

"While data gaps persist, research methodologies are constantly improving."

Droughts observed in the Northern Hemisphere this summer were "at least 20 times more likely" from human-caused climate change, according to a new "quick attribution" study.

The summer of 2022 saw Europe's worst drought in 500 years.

A combination of record temperatures and low rainfall has caused rivers to dry up, wildfires to rage and crop failures will exacerbate already high food prices.

Elsewhere, the western United States experienced its most extreme drought conditions in 1,200 years and sections of the Yangtze, China's longest river, hit their lowest level since at least 1865 amid extreme temperatures and a "serious lack of water." of rain".

The World Weather Attribution finds that droughts of this intensity can be expected in the Northern Hemisphere once every 20 years in the current climate. However, in a world without climate change, they would only be expected once every 400 years or less.

The team also focused on west-central Europe, where they found that climate change made drought three to four times worse.

Climate change is causing "compounding and cascading risks," one study author told the news conference. For example, extreme droughts caused crop failures at a time when "world markets were already struggling with the impacts of the Ukraine war."

In September 2022, after months of intense drought in the Northern Hemisphere, BBC News published an article with the headline: “Drought in China, Europe and the US:

From early May to mid-September, back-to-back heat waves swept across Europe, earning the summer the title of "hottest on record".

Two-thirds of Europe found itself under drought warnings in what some reported as the continent's worst drought in 500 years.

The drought had serious impacts on agriculture. For example, the Po river basin in northern Italy experienced its worst “WATER CRISIS” in about 70 years, disappearing completely in some areas and causing a 30% drop in the rice harvest.

As similar stories unfolded across Europe, fears of a global food security crisis were growing.

Professor Maarten van Aalst, of the Red Cross and Red Crescent Movement, told a news conference that climate change is producing "composite and cascading risks". Speaking of the current food crisis, he said: “World markets were already struggling with the impacts of the Ukraine war, both in food prices and through fertilisers.

We had already seen some other weather shocks in those agricultural prices, including South Asian heat in India and Pakistan...

"In turn we saw the shocks that spread throughout the global system.”

The Guardian called the event a "MEGA DROUGHT," noting that Lake Mead and Lake Powell "are at record lows and steadily wilting," adding that "wildfires now rage year-round as that dry forests and grasslands are more primed than ever to burn.

Separately, China was hit by its most severe heat wave in six decades.

Sections of the Yangtze reached their lowest level since at least 1865, limiting hydroelectric power, halting shipping and forcing major companies to suspend operations.

There are many ways to define drought. For example, hydrologic drought focuses on the amount of rainfall a region receives, while pluvial droughts focus on surface and groundwater flows.

This study focuses on the “AGRICULTURAL AND ECOLOGICAL DROUGHT”, which measures the moisture content of the soil.

The researchers calculated soil moisture in the "SURFACE" and "ROOT ZONE," which measure the amount of moisture in the top seven centimeters and top meter of soil, respectively.

Specialists say that measuring agricultural and ecological drought in the root zone is "PARTICULARLY IMPORTANT" because most plants absorb water at this depth.

This is why they investigate the role of climate change on soil moisture between June and August 2022 in the northern hemisphere, excluding tropical regions.

They also focus on a smaller region of central-western Europe during the same period.

Climate Change is affecting every area of our lives and in sometimes smaller proportions, following by serious effects with intensity.

"Which accelerate our prevention measures, but also attack our surprise, leaving us unprotected in the face of extreme catastrophes."

The repercussions on our daily habits are undeniable "and it is remarkable how human beings are adapting to the fury of a climate that we knew how to destroy."

There must be an immediate change in efficiency habits! Those that we should adopt, so that improvements are reflected.

. Illuminem Voices is a democratic space presenting the thoughts and opinions of leading Sustainability & Energy writers, their opinions do not necessarily represent those of illuminem.

Myth or Reality About Climate Change

Dr. Diego Balverde is an Economist at the European Central Bank and has extensive experience in climate finance. He is currently also an Advisory Member of the Council of Foreign Trade at The World Bank. Diego is very active on the international sustainability stage having attended COP27 as a Circular economy for Climate Change specialist and will also be attending the G20 Conference in India as part of the Energy, Sustainability and Climate Task Force. Diego holds a PhD in Foreign trade from Chapman University and an MBA degree from Cambridge Judge Business School.

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Diego Balverde

Diego Balverde

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