Yellen says $3 trillion needed yearly for climate change

Treasury Secretary Janet Yellen emphasized the urgent need for $3 trillion in annual investments to facilitate the global transition to a low-carbon economy by 2050. Speaking in Belem, Brazil, after meetings with G-20 finance ministers, Yellen described this financing gap as the most significant economic opportunity of the 21st century. She underscored the importance of this transition, particularly in the context of the Amazon, which serves as a vital reminder of the potential for sustainable growth. In 2022, wealthy nations provided a record $116 billion in climate finance to developing countries, with a substantial portion sourced from multilateral development banks (MDBs). Yellen reiterated that addressing the financing needs could foster inclusive growth, especially in regions lacking investment. During her visit, she met with finance ministers from Amazon basin countries and reaffirmed U.S. support for the Inter-American Development Bank's (IDB) Amazonia Forever program, aimed at promoting sustainable development through collaborative financing efforts. Yellen also called for MDBs to innovate new business models that can mobilize investments supporting nature and biodiversity, which are crucial for economic resilience and climate adaptation. Additionally, she launched a new initiative with Amazon basin nations to combat environmental crimes, such as illegal logging and mining, which threaten biodiversity and local economies. This initiative aims to protect the integrity of the international financial system while addressing significant environmental challenges.