U.S. Treasury Secretary Janet Yellen emphasized the urgent need for $3 trillion in new capital annually through 2050 to facilitate the global transition to a low-carbon economy. Speaking in Belem, Brazil, a key gateway to the Amazon, Yellen highlighted that addressing climate change and biodiversity loss is crucial not only for the environment but also for economic stability. She described this transition as the “biggest economic opportunity of the 21st century.”
During her speech, following the G20 finance leaders meeting in Rio de Janeiro, Yellen reiterated the Biden-Harris administration’s commitment to achieving net-zero emissions. She stressed that this goal requires international cooperation and leadership. In 2022, wealthy economies mobilized a record $116 billion for climate finance in developing countries, with a significant portion facilitated by multilateral development banks (MDBs) like the World Bank and the Inter-American Development Bank (IDB). Yellen noted that these institutions are setting new targets to meet the financing needs, which she believes could drive sustainable and inclusive economic growth, especially in investment-starved regions.
Yellen’s visit included meetings with finance ministers from Amazon basin countries and IDB President Ilan Goldfajn. She reaffirmed the U.S.’s commitment to the bank’s Amazonia Forever platform, designed to promote sustainable development in the region through financing and collaboration. She expressed hope that this initiative would attract more private-sector investment to support environmental sustainability.
Yellen also called on MDBs to expand their missions and lending capacity to include combating climate change. She urged these banks to develop new business models to mobilize investments that bolster nature and biodiversity, strengthen economies, and advance climate transitions. This call to action aligns with her ongoing efforts to engage the private sector in these initiatives.
Earlier, Yellen launched a new initiative with Amazon basin countries, including Brazil, Colombia, Ecuador, Guyana, Peru, and Suriname, to combat environmental crimes such as illegal logging and wildlife trafficking. These activities pose significant threats to biodiversity and the Amazon ecosystem.
