MUMBAI: Amitabh Kant, the country’s ‘Sherpa’ for G20, said there was no consensus on addressing the debt of emerging markets as China refused to be a party. Kant said that China, a creditor to many countries, had refused to join hands with IMF and World Bank for a debt deal and said that it would negotiate with its debtors bilaterally. “That is one of the biggest challenges the world faces today. If countries start failing on debt and their currencies start falling, there will be a huge cascading effect from all this,” said Kant. He was responding to a question from the SBI chairman Dinesh Khara. Kant said that China’s debt conditions were so opaque that some recipient countries were unaware of the conditions. In some cases the terms of the debt could not be shared with Parliament. Kant said that the IMF and the World Bank, designed for a post-World War world, need to change how they work. Given the capital requirement, should be providing credit enhancement and first loss guarantees so that nations can receive much larger funding. Speaking at the SBI Economic Conclave, Kant, who recently headed Niti Aayog, said all the regulators in the country need to act as development and change agents. On the G20 summit, Kant said there was a lot of focus on climate action and India’s carbon contribution at 52 giga tonnes was only 1. 5% of the carbon space available. “We are entitled to 17. 5%. The challenge is for the world to grow in a sustainable manner, but to enable this the principle of just transition has to be accepted and the developed world has to finance the transition for developing countries,” said Kant. He added that India must use this opportunity to technologically leapfrog and become a green economy. Bankers should finance companies that are going to go green and ensure that India makes this transition rapidly.