As prepared for delivery
Good afternoon. I am glad to be here at the Goeldi Museum with Inter-American Development Bank President Ilan Goldfajn and Governor Helder Barbalho, and to have spent the day engaging with ministers from the region and leaders from the IDB and the private sector. Throughout my week in Brazil, I have seen the value of three key aspects of the Treasury Department’s approach to advance the Biden-Harris Administration’s international climate, nature, and biodiversity agenda: strengthening relationships with allies and partners; making the international financial architecture work better for countries; and harnessing the power of markets.
Here in Belém, near the Amazon rainforest, the importance of our collective work is palpable. Climate change poses a daily threat to individuals, communities, and countries. It harms health, damages homes and businesses, strains budgets, and risks various economic sectors. Those with fewer resources often bear greater costs.
In addition to climate change, there is an accelerating loss of nature and biodiversity. This loss impacts migration, food security, water availability, and creates a vicious cycle where climate change accelerates nature loss which in turn worsens climate impacts.
Neglecting climate change and biodiversity loss is not just poor environmental policy; it is poor economic policy. However, being close to the Amazon reminds us that transitioning to a lower-carbon global economy presents significant economic opportunities. The transition will require $3 trillion annually until 2050 but can support sustainable growth globally.
The Biden-Harris Administration prioritizes supporting this transition to net zero. The Treasury Department plays a key role by implementing policies like the Inflation Reduction Act—significant climate legislation driving investments in clean energy technologies.
Internationally, we aim to achieve our climate goals through strengthened relationships with allies. We launched initiatives such as Just Energy Transition Partnerships with Indonesia, South Africa, and Vietnam to support their transitions.
Earlier this month, we announced $50 million for Brazil’s Amazon Fund as part of President Biden’s $500 million commitment. We also launched a partnership with Fazenda focusing on clean energy supply chains and carbon market integrity principles among other areas.
Treasury has focused on improving international financial architecture for better support in climate mitigation. Three years ago I convened MDB heads to raise their climate ambitions; now institutions like World Bank under President Banga's leadership prioritize tackling climate change more effectively.
Developed countries provided almost $116 billion in climate finance for developing nations in 2022—a record amount—with MDBs contributing significantly. Addressing climate change has become integral within MDB operations.
We continue efforts towards effective investments reflecting strong environmental safeguards while respecting Indigenous Peoples’ way of life.
Our third approach involves harnessing market power for advancing climate transitions while capitalizing on economic opportunities through initiatives like Partnership for Global Infrastructure Investment mobilizing tens of billions into renewable energy access globally or new Emerging Markets Transition Debt initiative increasing institutional investors’ aligned investments.
We emphasize providing guidance shaping behavior such as Net-Zero Principles or carbon market integrity principles through partnerships like Fazenda-Treasury collaboration strengthening these markets across major financial centers including US & Amazon regions respectively
Ultimately through these strategies—strengthening relationships making international financial systems efficient & leveraging market forces—we progress towards addressing interconnected challenges posed by changing climates/nature losses alongside seizing emerging economic prospects ensuring resilient future economies worldwide particularly highlighted here today amidst Belém anticipating COP30 summit reaffirmation continued dedication collective endeavors forthcoming months/years ahead securing planetary wellbeing humanity overall shared commitments alike thank you presence today###
