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Treasury Secretary Janet Yellen said Saturday that the global transition to a low carbon economy will require $3T in new capital each year through 2050, far above current financing.
Speaking in Brazil after meeting with G20 finance ministers to discuss economic development, Yellen said stronger climate finance policies are needed to address the “existential threat” of climate change, which will require leadership far beyond U.S. borders.
“Neglecting to address climate change and the loss of nature and biodiversity is not just bad environmental policy. It is also bad economic policy,” Yellen said.
But the financing need is “the single greatest economic opportunity of the 21st century” and can be leveraged to support sustainable and more inclusive growth, including for investment-starved countries, she said.
Wealthy economies mobilized $116B in climate finance for developing countries in 2022, with 40% coming from multilateral development banks; Yellen said the banks, including the World Bank and the Inter-American Development Bank, are setting new targets.
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