Government can leverage private spending to combat climate change, says Yellen

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The role of the federal government is to leverage the way the private sector creates and distributes technology to curb climate change, Treasury Secretary Janet Yellen said Tuesday. “To really make progress on the climate, we need both public and private investment and things like charging stations and a power grid that is capable of handling renewable energy sources adequately. These basic investments are essential to provide the infrastructure, the public infrastructure to support incentives for private investment, ”he said.

Read: Biden‘s infrastructure plan includes a speech for electric vehicle rebates Yellen made the remarks as part of the spring virtual meetings of the World Bank and the International Monetary Fund, which addressed a “green” recovery from the COVID crisis -19. The IMF improved its economic outlook in its report on Tuesday. Yellen continued: “We are also looking for tax incentives to stimulate private R&D. I believe that technological change will be important and we want to encourage in a green direction. We see the potential for tax incentives for electric vehicles and the like, these are some of the ways we hope to stimulate private sector investment, and there will be opportunities. You know, sometimes we think this is expensive, but it‘s really important to emphasize that addressing climate change will provide opportunities for the private sector for investment and for our society. ” The Biden administration has linked climate change and renewable energy initiatives to a huge demand for infrastructure that is advancing to Congress, with a proposed price tag of $ 2.25 trillion. Don’t Miss: Biden’s Plan for 500,000 Electric Vehicle Charging Stations Faces a Tough Road Ahead Speaking of the broader recovery, the Treasury Secretary said the learnings from the financial crisis are still on the mind. “We expect a speedy recovery. I am hopeful that we will return to full employment next year. And once we are, we will move to a longer-term investment agenda: investment in infrastructure, in R&D, in people, ”Yellen said. “But globally, I think that what we are doing domestically is helpful to the entire global community, stronger growth in the US It will positively extend to the entire global outlook. And we’re going to be careful to learn the lessons from the financial crisis, that is, don’t withdraw support too quickly. “Read: Fossil Fuel Mainstay Baker Hughes Joins Plug Power on Green Hydrogen Fund Yellen is also celebrating her first meeting with the Coalition of Finance Ministers for Climate Action, which the Biden administration joined last week. Yellen said Tuesday that she is pleased to be co-chair of the recently re-established sustainable finance group of the Group of 20, which said it would provide an important approach to addressing climate-related issues. Under his watch, it was announced that the US Treasury would play a critical role in a government-wide push to reach an ambitious emissions target by 2030 under the Paris climate accord. Biden returned the United States to the voluntary accord adopted by many developed and emerging economies, reversing l the retreat of former President Trump. In a speech to the Chicago Global Affairs Council on Monday, Yellen said the Treasury will work to “promote the flow of capital toward climate-aligned investments away from carbon-intensive USO investments, + 0.99%. “That position has already drawn the ire of some Republican members of Congress, who say it threatens the ability of the US oil and gas industry to access needed loans, impacting its consumers and investors. World Bank President David Malpass said Tuesday that his group is finalizing a new action plan against climate change, which includes a major step forward in financing. “Our plan identifies key priorities for action, with a focus on both adaptation and mitigation. It also includes a strong focus on a just coal transition, and we are working to align our financial flows with the goals of the Paris agreement, ”he said. IMF Managing Director Kristalina Georgieva welcomed the US-led infrastructure push to fundamentally change the remedy against climate change. The IMF is “focusing on climate-related financial stability risks, and we have an important role to play: standardized reporting of these risks, stress tests and analysis of the role of supervisory authorities,” Georgieva said. “We have an instrument together with the World Bank, the assessments of the financial sector. We are integrating climate-related risks into these assessments. ” The IMF is getting closer to launching the climate change dashboard that would help policymakers see their growth numbers, employment numbers, and carbon intensity numbers in one place.