When the world is confronted with a great shock, such as (the COVID-19) pandemic, we have at least experienced the global shock and now, climate change will become another shock.
Jakarta (ANTARA) – Climate change is posing a serious global threat next to the COVID-19 pandemic, Finance Minister Sri Mulyani Indrawati has said.
“When the world is confronted with a great shock, such as (the COVID-19) pandemic, we have at least experienced the global shock and now, climate change will become another shock,” she observed at the “Indonesia Economic Outlook 2023 Forum,” which was followed online from Jakarta on Monday.
On its part, the government is conceiving a carbon market and carbon tax schemes as well as the energy transition mechanism to promote the climate change mitigation agenda, she informed.
The other challenge besides climate change is the global crisis due to exponential food and energy price hikes, which have led to high inflation. These challenges have brought extraordinary consequences to countries, she said.
The war in Ukraine has disrupted food and energy supplies, causing supply aggregates to experience a shock, and the trend will likely not be the same as the COVID-19 pandemic, she noted.
“This means that we will unlikely recover quickly, except if another shock happens in the technological field,” she said.
All these challenges are not very common, and economic science must provide a solution by presenting a data and fact-based analysis as well as a debatable analysis, she added.
In the meantime, economic science is expected to provide intellectual and leadership content support to public debates about crucial issues, down from the definition of the pandemic, climate change, inflation, and interest hike, to potential recession in developed nations, she said.
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