Yellen: Private funds also needed to tackle climate change

The cost of achieving net-zero carbon emissions by 2050 could climb to $2.5 trillion over 10 years for the US alone, according to one estimate.

Treasury Secretary Janet Yellen said private financing, and not just government spending, will be needed to tackle the “existential threat” of climate change. The overall cost of achieving net-zero carbon emissions by 2050 — in line with the 2015 Paris Agreement that the U.S. has rejoined — could run to $2.5 trillion over 10 years for the U.S. alone, according to one estimate, Yellen said in a speech to a virtual conference Wednesday organized by the Institute of International Finance. “It’s going to be tremendously important for the financial services industry to marshal and allocate capital that’s needed to make the transition toward net-zero” emissions, she said in a question-and-answer segment that followed the speech. “Massive investments are likely to be needed and the bulk has to be private.”