On June 24, 2024, Secretary of the Treasury Janet L. Yellen delivered remarks on extreme heat financing, emphasizing the increasing severity and frequency of extreme weather events globally. She highlighted the importance of mitigating and responding to these events as a key priority for the Treasury Department, in collaboration with multilateral development banks (MDBs).
"Good morning. I’m glad to be co-hosting this event with Administrator Power. Thank you, Samantha, for moderating," Yellen began. She acknowledged Senior Advisor Podesta and thanked development partners for their participation.
Yellen recounted her initial meetings with MDB leaders to discuss increasing climate ambition and scaling financing for climate adaptation. She noted significant progress since then, particularly in mobilizing funds to help developing countries address climate change.
"The OECD found that in 2022, developed countries met our goal of mobilizing $100 billion annually to help developing countries address climate change, mobilizing a record $115.9 billion," Yellen stated. She praised MDBs for contributing 40 percent of that amount and recognized several recent achievements by various banks.
The African Development Bank established the Alliance for Green Infrastructure in Africa, aiming to mobilize $10 billion for green infrastructure projects. The Asian Development Bank committed its highest-ever level of climate finance in 2023 across critical sectors such as agriculture and energy. The European Development Bank developed credit lines for energy-saving measures in buildings and worked with governments to enhance private-sector financing for building energy efficiency.
The Inter-American Development Bank launched the Natural Capital and Biodiversity Mainstreaming Action Plan for 2024-2025 to support economic and climate-smart development through nature-based solutions. At the World Bank, 96 percent of projects included a climate financing component in 2023.
Despite these achievements, Yellen emphasized that more work remains. She outlined three areas of focus moving forward: setting specific targets and measuring outcomes; prioritizing private capital mobilization; and supporting vulnerable countries through IDA and the Green Climate Fund.
"We need to make sure we have our eyes not only on dollars out the door but on the outcomes that change lives," Yellen said, advocating for tracking indicators that assess resilience and adaptation to temperature increases.
She stressed the necessity of crowding-in private investment at scale with innovative financing tools and transparent reporting. "We know we cannot meet our shared development goals with public money alone," she added.
Yellen concluded by expressing optimism about future steps leading to more effective MDBs in reducing poverty, accelerating sustainable growth, and addressing global challenges like climate change.
"I very much look forward to continuing to advance our collective work," she said, thanking participants once again.
