Yellen touts infrastructure investment on the world stage to combat climate change

Treasury Secretary Janet Yellen called for spending on sustainable infrastructure to combat climate change when she first traveled abroad after taking office. And she wants the private sector to participate in the action.

But her pitch is taking place as negotiations on infrastructure between the Biden administration and Republicans are slowly underway in Washington.

Yellen will meet with the G7 Treasury Minister in London this week to discuss international priorities, including economic recovery from the coronavirus pandemic. She also spoke at the G20 Infrastructure Investors Dialogue. The aim is to strengthen cooperation between government officials and investors in member countries. According to the Economic Cooperation and Development Organization (OECD), as public and private spending declines, infrastructure investment gaps will It is projected to reach $ 15 trillion by 2040.

Funding for a new, high-quality’green infrastructure’-infrastructure that is resistant to extreme climate events and minimizes greenhouse gas emissions-is essential to reduce these emissions. Ellen said in a prepared statement.

She said the global annual infrastructure investment gap is as high as $ 3 trillion and cannot be submitted with public funds.

“If the world has the real hope of achieving our climate goals and avoiding the most devastating effects of climate change, we must fill this gap by investing in sustainable infrastructure. No, “Yellen said.

Not the first time Yellen called For private spending to fill the gap to support the fight against climate change. But that happens when the Biden administration is trying to negotiate a bipartisan arrangement for US infrastructure with lawmakers.

On Friday, Republican Senator, in talks with the White House, announced a $ 928 billion counteroffer infrastructure package after President Biden lowered his plans from more than $ 2 trillion to $ 1.7 trillion, but spending on electric vehicles. The new Republican proposal does not mention spending to combat climate change, which is an important aspect of Biden’s proposal. West Virginia Senator Shelley Moore Capito, who is leading the Republican negotiations, met with the president again at the White House on Wednesday.

In his speech, Yellen emphasized the Biden administration’s proposal to spend $ 1.7 trillion over 10 years on road modernization and broadband expansion, but “most importantly, infrastructure and green technology. It will help promote significant investment in the private sector. “

She specifically focused on the tax credits proposed to mobilize private spending on power lines. She also said that in their plans, 40% of the benefits of spending on climate change and clean infrastructure will go to underserved areas.

In his speech, Yellen also touched on how G20 member states can guide investors in infrastructure without over-increasing profits to attract investors.

“There are natural concerns about the potential impact on investment and project costs,” Yellen said of the principles the Group is developing. However, she said authorities continue to hear from retail investors that such principles are needed to help guide investment.

Meanwhile, Capito, who returned to Washington, said he was “encouraged” after a recent visit to the White House to talk about infrastructure. She will brief members of her team and will contact the president again on Friday.

Yellen touts infrastructure investment on the world stage to combat climate change

Source link Yellen touts infrastructure investment on the world stage to combat climate change

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