In a speech delivered in Belem, Brazil, U.S. Treasury Secretary Janet Yellen outlined a $78 trillion financing plan needed by 2050 to transition the global economy to a low-carbon model. This announcement underscores the Biden administration’s prioritization of achieving net-zero global carbon emissions.
Yellen stated that achieving this transition will necessitate $3 trillion in annual global financing. “The transition will require no less than $3 trillion in new capital from many sources each year between now and 2050,” she said. She committed to financing green initiatives in developing countries through multilateral development banks and the advancement of clean energy technologies.
In 2022, global economies contributed a record $116 billion to climate initiatives in developing nations. Yellen called this investment “the single-greatest economic opportunity of the 21st century” and emphasized the economic risks of ignoring climate change.
“Neglecting to address climate change and the loss of nature and biodiversity is not just bad environmental policy. It is bad economic policy,” Yellen warned.
Highlighting the Biden administration’s domestic efforts, Yellen praised the Inflation Reduction Act, describing it as “the most significant climate legislation in our nation’s history.” The act allocated $370 billion to support climate initiatives, including electric vehicles and other green technologies crucial to Biden’s climate goals.
Yellen stressed that these ambitions extend beyond U.S. borders. “Our ambitions at home are matched by our ambitions abroad,” she said. “We know that we can only achieve our climate and economic goals — from reducing global emissions to adapting and building resilience, from strengthening markets to bolstering supply chains — if we also lead efforts far beyond our borders.”
