Janet Yellen: $3 Trillion Needed Annually for Global Low-Carbon Economy

Janet Yellen, U.S. Treasury Secretary, announced that transitioning to a global low-carbon economy necessitates $3 trillion annually until 2050. Speaking in Belem, Brazil, she emphasized this as the 21st century's biggest economic opportunity. Wealthy economies provided record climate financing in 2022, but Yellen urged more private sector involvement and new investment models.

U.S. Treasury Secretary Janet Yellen announced on Saturday that a global transition to a low-carbon economy will require $3 trillion in annual capital through 2050, presenting a formidable economic opportunity of the 21st century. Despite record climate financing in 2022, a significant gap remains.

Speaking in Belem, Yellen reaffirmed the Biden-Harris administration's commitment to achieving net-zero emissions. She highlighted that neglecting climate change is not only environmental folly but poor economic policy. Her remarks followed a G20 finance leaders meeting in Rio de Janeiro.

Yellen also emphasized the critical role of multilateral development banks in setting new financial targets, pointing out the $116 billion provided last year. Meeting with Amazon basin finance ministers and IDB President Ilan Goldfajn, she urged for holistic approaches to sustainable development and greater private sector investment in the Amazon.