$3T/yr needed for low-carbon transition – Yellen

US Treasury Secretary Janet Yellen emphasised the need for $3 trillion in new capital annually until 2050 to facilitate the global transition to a low-carbon economy, calling it “the single-greatest economic opportunity of the 21st century.”

Speaking in Belem, Brazil, Yellen highlighted the Biden-Harris administration’s commitment to achieving net-zero emissions, underscoring that addressing climate change is crucial for both environmental and economic policy.

In 2022, wealthy economies mobilised a record $116 billion in climate finance for developing countries, with 40 per cent provided by multilateral development banks (MDBs) like the World Bank and the Inter-American Development Bank (IDB).

Yellen noted that these banks are setting new targets to boost climate financing.

During her visit to Belem, Yellen met with Amazon basin finance ministers and IDB President Ilan Goldfajn, reaffirming US support for the bank’s Amazonia Forever platform, aimed at sustainable development in the region. She called for increased private-sector investment to support conservation efforts.

Yellen also launched an initiative with Amazon basin countries, including Brazil, Colombia, Ecuador, Guyana, Peru, and Suriname, to combat nature crimes such as illegal logging and wildlife trafficking. The initiative seeks to protect biodiversity and the Amazon ecosystem while promoting sustainable economic growth.