Biden Admin Proposes $78 Trillion for Net-Zero Carbon Emissions

U.S. Treasury Secretary Janet Yellen announced during a speech in Belem, Brazil, that transitioning to a low-carbon economy will require an estimated $78 trillion in financing by 2050. She emphasized the necessity of $3 trillion in annual global funding to achieve net-zero carbon emissions, a priority for the Biden administration. Yellen pledged to support green initiatives in developing countries through multilateral development banks and to advance clean energy technologies. In her address, Yellen underscored the economic implications of climate change, stating that ignoring environmental issues is detrimental to economic policy. She highlighted the Biden administration's commitment to climate initiatives, particularly through the Inflation Reduction Act, which she described as the most significant climate legislation in U.S. history. This act allocates $370 billion to subsidize essential technologies, including electric vehicles, to further the administration's green agenda. President Joe Biden has previously characterized climate change as an existential threat, vowing to utilize executive powers to combat the crisis in the absence of congressional action. Yellen echoed this sentiment, advocating for the implementation of climate initiatives not only domestically but also internationally. She stressed that achieving climate and economic goals requires global cooperation, from reducing emissions to enhancing supply chains. The Treasury Department has yet to respond to inquiries regarding Yellen's remarks, leaving some questions about the specifics of the proposed financing and international collaboration unanswered.