WASHINGTON DC: US Treasury Secretary Janet Yellen emphasized the urgent need for increased climate financing, stating that an estimated $3 trillion is required annually to address the growing climate crisis. This amount far surpasses current global efforts, highlighting the significant gap between existing climate financing commitments and the actual needs to mitigate climate change.
According to media reports, Yellen’s remarks come as world leaders face mounting pressure to accelerate their response to the escalating environmental crisis. The call to action is particularly timely, given the increasing frequency and severity of extreme weather events, such as heatwaves, droughts, and floods, which have devastating impacts on communities worldwide.
The estimated $3 trillion annual requirement underscores the immense scale of investment necessary to transition to a low-carbon economy, support climate resilience and adaptation efforts, and promote sustainable development and infrastructure. This investment is crucial for reducing greenhouse gas emissions, developing clean energy sources, and implementing climate-resilient infrastructure.
Yellen’s statement serves as a clarion call for governments, financial institutions, and private sector entities to collectively step up their climate financing efforts and work towards bridging this substantial funding gap. The Treasury Secretary’s warning emphasizes the need for immediate action to avoid the catastrophic consequences of inaction.
The $3 trillion target is a significant increase from current global climate financing efforts, which fall short of the required amount. Yellen’s announcement is expected to spark renewed discussions and commitments from world leaders to address the climate crisis.