By David Lawder

BELEM, Brazil (Reuters) – U.S. Treasury Secretary Janet Yellen announced on Saturday that achieving a low-carbon economy will necessitate an annual investment of $3 trillion until 2050, significantly surpassing current financing levels. She emphasized that bridging this financial gap represents the most significant economic opportunity of the 21st century.

Yellen addressed attendees in Belem, Brazil’s gateway city to the Amazon, reiterating the Biden-Harris administration’s commitment to reaching net-zero emissions. She stressed the importance of international collaboration in this endeavor.

“Neglecting to address climate change and the loss of nature and biodiversity is not just bad environmental policy. It is bad economic policy,” Yellen stated after participating in a G20 finance leaders meeting.

In 2022, wealthy economies mobilized a record $116 billion for climate finance aimed at developing countries, with 40% sourced from multilateral development banks (MDBs). According to Yellen, these banks, including the World Bank and the Inter-American Development Bank (IDB), have established new targets to enhance their climate financing efforts.

This financing gap presents “the single-greatest economic opportunity of the 21st century” that can foster sustainable growth and bolster investment in underfunded nations.

During her visit to Belem, Yellen met with finance ministers from Amazon basin countries and IDB President Ilan Goldfajn, reaffirming the U.S.’s commitment to the Amazonia Forever platform. This initiative promotes sustainable development in the region through financial support, project planning, and collaboration.

She expressed optimism that the program would encourage increased private-sector investment to support ecological sustainability in the area.

Yellen urged MDBs to enhance their missions to incorporate climate change efforts, noting that this focus has become integral to their frameworks. However, substantial private investment is essential, and coordinated efforts among the Treasury, Brazil’s finance ministry, and other stakeholders are ongoing to engage the private sector.

Additionally, Yellen announced a new initiative in collaboration with Amazon basin countries – Brazil, Colombia, Ecuador, Guyana, Peru, and Suriname – aimed at combatting nature crimes such as illegal logging and wildlife trafficking, which pose threats to biodiversity and the Amazon ecosystem.