Yellen outlines a daring climate agenda calling for a net release by 2035

Treasury Secretary Janet Yellen on Wednesday called for an ambitious effort across the U.S. economy, from polluting companies to major financial institutions, to tackle climate change.

In a further outline of her office’s involvement in the climate issue, Yellen mentions the importance of the public and private sectors working together to reduce emissions and move the world towards a greener future.

“President Biden has outlined an ambitious strategy to switch the United States to net release and has mobilized the entire government to achieve this,” Yellen said in prepared remarks to the Institute of International Finance. “At the Treasury, our goal is to follow 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 removes tax subsidies for fossil fuels and provides allowances and incentives for electric vehicles.

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

In comments building on steps already taken by the Federal Reserve, which she had previously used as chair, Yellen said work should be done to identify assets that are at risk due to potential climate disasters. From there, institutions will be asked to indicate how they are prepared to deal with such risks.

She realized that such movements were in their emerging stage and would be difficult to measure, but she said the push was necessary.

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

The remarks are a sharp departure for the US after the Trump administration took a largely practical approach to the issue, withdrawing from the Paris climate accords and having a friendlier view of fossil fuels.

Under Biden, the approach has changed sharply to the point that, according to some Republicans, a move is on behalf of the Treasury.

However, Yellen said the government was determined to tackle the issue and work with its global partners.

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

Yellen noted that workers will be displaced by the goals of the administration and said the climate initiatives will provide the development of labor and the ‘delivery of federal resources’ to communities that are negatively affected by efforts to do green energy.