“U.S. Treasury Secretary Janet Yellen Calls for $3 Trillion in Climate Financing at G20 Meeting in Brazil”

U.S. Treasury Secretary Janet Yellen recently participated in the G20 Finance Ministers and Central Bank Governors Meeting in Rio de Janeiro, Brazil on July 24, 2024. During her address in Belém, Brazil, Yellen emphasized the urgent need for $3 trillion in annual financing to achieve the world’s climate and biodiversity goals by 2050.

Yellen highlighted the importance of transitioning to a low-carbon economy, stating that the current level of yearly financing falls short of what is needed. She emphasized that addressing climate change and biodiversity loss is not only crucial for environmental reasons but also for economic stability.

In an effort to combat nature crimes and illicit financing, Yellen announced the Amazon Region Initiative Against Illicit Finance. This initiative aims to disrupt the financing of criminal organizations that benefit from illegal activities in the Amazon region. The partnership includes the U.S. and Amazon basin countries such as Brazil, Colombia, Ecuador, Peru, Guyana, and Suriname.

Yellen reiterated the Biden-Harris administration’s commitment to achieving net-zero emissions and emphasized the importance of international collaboration in reaching climate and economic goals. She outlined the Treasury Department’s approach to advancing the international climate agenda, including strengthening relationships with allies, improving global financial architecture, and leveraging market mechanisms.

The Treasury Secretary also highlighted the department’s efforts in conducting debt-for-nature swaps to support conservation efforts in countries with significant tropical forests or coral reefs, particularly in Latin America. Yellen emphasized the need for an international financial architecture that supports developing countries in achieving sustainable development and climate goals.

As the Treasury Department implements the Inflation Reduction Act, Yellen noted that American clean energy companies are investing in renewables and supporting projects in the Amazon region. She expressed optimism about the progress being made in addressing climate change and biodiversity loss, emphasizing the importance of collaboration and innovation in securing a better future for the planet.

Overall, Yellen’s participation in the G20 meeting underscored the importance of global cooperation and financial support in addressing pressing environmental challenges. Her remarks highlighted the economic opportunities associated with transitioning to a low-carbon economy and the need for concerted efforts to achieve a sustainable future for all.