Yellen highlights bold climate agenda calling for zero net emissions by 2035

Treasury Secretary Janet Yellen on Wednesday called for an ambitious effort across the U.S. economy, from polluting companies to large financial institutions, to combat climate change.

In further elaborating his office’s involvement in the climate issue, Yellen mentioned the importance of the public and private sectors working together to reduce emissions and move the world towards a greener future.

“President Biden outlined an ambitious strategy for the United States to transition to zero net emissions and mobilized the entire government to achieve them,” Yellen said in prepared remarks to the Institute of International Finance. At the Treasury, our goal is to take this “whole government” approach and turn it into a “whole economy” approach.

Initiatives include a clean electricity standard that aims to achieve carbon-free electricity by 2035. The plan also eliminates tax subsidies for fossil fuels and will provide subsidies and incentives for electric vehicles.

Yellen also said the focus will be on the financial system.

In comments based on measures already taken by the Federal Reserve, which he led, Yellen said efforts must be made to identify assets at risk due to potential climate disasters. From there, institutions will be called upon to indicate how they are prepared to deal with such risks.

She acknowledged that such moves are in their infancy and will be difficult to measure, but said the push is necessary.

“Thinking says that because we know so little about climate risk, let’s be tentative in our actions – or even do nothing. This is completely wrong in my opinion,” she said. “This is a major issue and needs to be addressed now.”

The remarks are a sudden departure for the United States after the Trump administration adopted a largely simple approach to the issue, withdrawing from the Paris climate agreements and adopting a friendlier picture of fossil fuels.

Under Biden, this approach changed abruptly to the point that some Republicans said it was an overrun on behalf of the Treasury.

However, Yellen said the administration is determined to address the issue and work with its global partners.

“We are committed to working closely with our international partners – especially with other major emitters such as Europe, India and China – in our shared responsibility to implement ambitious emission reduction measures,” she said.

Yellen noted that workers will be displaced by the administration’s goals and said climate initiatives will ensure workforce development and the “delivery of federal resources” to communities adversely affected by green energy efforts.