Yellen called for innovative business models that mobilize investments supporting nature and biodiversity. Image by Andrew Burton / GETTY IMAGES NORTH AMERICA / Getty Images via AFP US Treasury Secretary Janet Yellen said Saturday that the global transition to a low-carbon economy demands an unprecedented infusion of $3 trillion annually through 2050, far exceeding current levels of climate finance.
Global transition "Neglecting to address climate change and the loss of nature and biodiversity is not just bad environmental policy. It is bad economic policy," Yellen said in her speech in Belem, Brazil's Amazon gateway city after she participated in the G20 finance leaders meeting in Rio de Janeiro.
Yellen noted that in 2022, wealthy countries mobilized a record $116 billion in climate finance for developing countries, with 40% sourced from multilateral development banks (MDBs). These institutions, including the World Bank and the Inter-American Development Bank (IDB), are setting ambitious new targets to meet the growing demands of climate action.
The Treasury Secretary highlighted that these banks are now embedding climate goals into their core missions, but stressed the necessity of massive private sector investment to close the financing gap.
She also called for innovative business models that mobilize investments supporting nature and biodiversity, while advancing climate transitions. She noted that the Treasury, in collaboration with Brazil’s finance ministry and other stakeholders, is actively working to enhance private sector engagement in these efforts.
During her visit, Yellen met with finance ministers from Amazon basin countries and IDB President Ilan Goldfajn, reaffirming US support for the bank's Amazonia Forever program.
"We are hopeful that this program will incentivize greater private-sector investment in the region that supports nature," she said.
Climate crime In May, Yellen launched a new initiative targeting nature crimes in the Amazon basin, according to a statement by the US Treasury.
This collaborative effort with Brazil, Colombia, Ecuador, Guyana, Peru, and Suriname aims to combat illegal logging and wildlife and mineral harvesting, which threaten biodiversity and the ecosystem.
Record temperatures Yellen's call to action came amid the backdrop of record-breaking global temperatures, underscoring the urgency of addressing climate change.
A historic all-time high in global climate was set on July 22, surpassing the previous day's record to become the hottest day ever, according to preliminary data from the European Union's (EU) Copernicus Climate Change Service (C3S).
The global average surface air temperature reached 17.15°C, surpassing the previous record by 0.06°C. The former highest daily global average temperature was 17.08°C, set on July 6, 2023, during a streak of record-breaking temperatures in July and August of last year.
Further, June 2024 was the hottest on record globally, marking the 13th consecutive month of record-high temperatures, according to C3S data. During this month, global temperatures were 0.67°C above the 1991-2020 average for June and 0.14°C higher than the previous record set in June 2023.
Additionally, the global average temperature from July 2023 to June 2024 was the highest ever recorded. Besides, this period saw temperatures 0.76°C above the 1991-2020 average and 1.64°C above the pre-industrial average from 1850-1900.
