Yellen says $3 trillion needed in global transition to low-carbon economy 

“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 a speech after attending G20 finance leaders meeting on Thursday and Friday in Rio de Janeiro.

She added, “We are hopeful that this program will incentivize greater private-sector investment in the region that supports nature.”

She called the financing need “the single greatest economic opportunity of the 21st century,” which could be used to promote sustainable and more inclusive growth, including for countries lacking investment.

Nearly two years ago, Yellen urged Multilateral Development Banks (MDBs) to broaden their missions and increase their lending to tackle climate change. 

She noted that this focus is now integral to their operations but emphasized that substantial private investment is still needed.

The Treasury, Brazil’s finance ministry, and other stakeholders are working to enhance private sector involvement. 

Yellen also suggested that these banks should stimulate new business models to attract investments that support nature and biodiversity while also boosting economies and advancing climate goals.

Earlier on Saturday, Yellen introduced a new initiative with Amazon basin countries—Brazil, Colombia, Ecuador, Guyana, Peru, and Suriname—to address nature crimes like illegal logging and wildlife trafficking, which are endangering biodiversity and the Amazon ecosystem.