Yellen outlines a bold climate agenda calling for net zero emissions by 2035

Treasury Secretary Janet Yellen on Wednesday called for an ambitious effort across the US economy, from pollution-emitting companies to major financial institutions, to tackle climate change.

In further explaining her agency’s involvement in the climate problem, Yellen mentioned the importance of working together between the public and private sectors to reduce emissions and move the world towards a greener future.

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

One of the initiatives is a clean electricity standard aimed at achieving carbon-free electricity generation by 2035. The plan also scraps tax subsidies for fossil fuels and provides subsidies and incentives for electric vehicles.

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

In comments building on the steps already taken by the Federal Reserve, which she previously chaired, Yellen said work needs to be done to identify assets at risk from potential climate disasters. From there, institutions are called upon to indicate how they are prepared to deal with such risks.

She realized that such movements are in their infancy and will be difficult to measure, but she said the push is needed.

“The thinking is that because we know so little about climate risks, we should be careful about our actions – or even do nothing at all. I think this is all wrong,” she said. “This is a big problem and it needs to be addressed now.”

The comments are a sharp departure for the US after the Trump administration has largely addressed the issue hands-off, pulled out of the Paris climate accords, and has taken a kinder view of fossil fuels.

Under Biden, that approach has changed significantly to the point that some Republicans say is an overshoot on behalf of the Treasury.

However, Yellen said the government is committed to addressing the problem and working with its global partners.

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

Yellen noted that workers will be displaced by the goals of the government and said the climate initiatives will ensure the development of the workforce and the “delivery of federal resources” to communities negatively impacted by green energy efforts .