Yellen outlines a bold climate agenda calling for clean 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 tackle climate change.

In a more detailed elaboration on his office’s involvement in the climate issue, Yellen cited the importance of the public and private sectors working together to reduce emissions and move the world toward a greener future.

“President Biden has outlined an ambitious strategy to make the U.S. transition to net zero emissions and has mobilized the entire government to achieve it,” Yellen said in prepared statements 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.”

Among the initiatives is a clean electricity standard aimed at achieving carbon-free electricity generation by 2035. The plan also eliminates tax subsidies on fossil fuels and will provide subsidies and incentives for electric vehicles.

Yellen also said the emphasis will extend to the financial system.

In remarks based on the steps already taken by the Federal Reserve, which used to preside, Yellen said work needs to be done to identify assets at risk due to possible climate disasters. From there, institutions will be asked to indicate how they are prepared to deal with these risks.

He acknowledged that these moves are in their early stages and will be difficult to measure, but said the push is needed.

“The thought is that because we know so little about climate risk, we’re either temporary in our actions, or we don’t even do anything. In my opinion, that’s completely wrong,” he said. “This is a major issue and needs to be addressed now.”

The statements are a strong exit for the United States after the Trump administration took a virtually practical approach to the issue, withdrawing from the Paris climate agreements and adopting a friendlier view of fossil fuels.

Under Biden, that approach has changed abruptly to the point that some Republicans have said it is an excessive step on behalf of the Treasury.

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

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

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