Climate Summit: How it impacts the countries’ economy?

Posted previously on Youth Politician on May 2021.

Forty world leaders were present at the Climate Summit on April 2nd and 3rd. The virtual event, organized by the United States, aimed for the participating countries would present results and renew targets against global warming for the next years.

In political matters, the reunion promoted by Joe Biden, the U.S. president, is interpreted as a big opportunity for him to restore “America’s protagonism” in climate global issues due the fulfillment of one of his main promises, the environmental agenda, working towards a sustainable future.

In general, is a preparation for the major and significant discussions at COP , United Nations Climate Change Conference, planned for November in the city of Glasgow, Scotland. The Leaders Summit on Climate is also a moment for many countries to reassure their commitments made at the Paris Agreement and to announce tangible and effective targets. It aims at the financing for projects in developing countries, acting as a showcase presented by Heads of State themselves, who sought to reiterate their engagement with the environment.

Economic impacts of the speeches

Two days after the Climate Summit, the international grain market had a high price due to an acceleration on the Chicago Stock Exchange. Soy and corn prices were rising because it’s important for renewable fuels production. The promises of adoption of new policies for the reduction of polluting gases by several government officials, even in a distant reality, caused a significant increase, according to data from AgRural, a consulting company in the commercialization of soybeans, corn and cotton.

American stocks were down due to an intense and unusual cold, the Ukrainians had a crop failure, the Brazilians held the cereal waiting for better prices: with this scenario, the Argentines were the only ones who were corn to sell. The prices at that time were not viable for both the human consumer market and the animal feed market. Such an example perfectly demonstrated how a meeting made only with promises can affect the international market and the economy at global scale.

Chen, Benjamin; Garcia, David; Caldas, Amy; Andrade, Beatriz; Nicholas, Kayla ; Dhesi, Kiman; Costa, Luciana; Huemer, Sarah; Shekhawat, Vaidaansh; Veloz, Andre. Youth Economist Compilation: For the youth by the youths (pp. 32-33). Kindle Edition.