Yellen Calls for $3 Trillion Annual Investment to Drive Global Climate Transition

BELEM, Brazil – U.S. Treasury Secretary Janet Yellen delivered a compelling speech at the Goeldi Museum, stressing the urgent need for $3 trillion in annual capital to facilitate the global shift to a low-carbon economy by 2050. Speaking alongside Inter-American Development Bank (IDB) President Ilan Goldfajn and Governor Helder Barbalho, Yellen underscored the Biden-Harris administration's commitment to addressing climate change and biodiversity loss.

"Neglecting to address climate change and the loss of nature and biodiversity is not just bad environmental policy. It is bad economic policy," Yellen stated, highlighting the existential threat posed by climate change and its wide-ranging impacts on health, infrastructure, and economic stability.

Yellen's remarks followed a G20 finance leaders meeting in Rio de Janeiro, where she emphasized the importance of international cooperation. Wealthy economies mobilized a record $116 billion for climate finance in 2022, with 40% from multilateral development banks (MDBs). She praised these institutions for setting new targets and called for increased private sector investment.

"The transition to a lower-carbon global economy is the single greatest economic opportunity of the twenty-first century," Yellen said. She noted that the Biden administration is driving significant investments through the Inflation Reduction Act and has launched initiatives like the Net-Zero Principles for Financing and Investment to guide U.S. financial institutions.

Yellen's speech also focused on strengthening alliances and improving the international financial architecture to better support climate goals. She cited efforts in countries like Indonesia, South Africa, and Vietnam, where Just Energy Transition Partnerships are accelerating transitions and boosting economies.

In Brazil, Yellen reaffirmed the U.S. commitment to the Amazonia Forever platform, aimed at sustainable development in the Amazon region. She also announced a new initiative with Amazon basin countries to combat nature crimes threatening biodiversity.

"Our ambitions at home are matched by our ambitions abroad," Yellen declared, advocating for collaborative efforts to achieve climate and economic goals globally. She concluded with a call to harness the power of markets, emphasizing the role of private investment in driving sustainable growth.

Yellen's address in Belem, near the Amazon rainforest, served as a potent reminder of the critical intersection between environmental stewardship and economic prosperity. As the world looks toward COP30, her message was clear: bold, coordinated action is essential to secure a sustainable future.