Secretary of the Treasury Janet L. Yellen delivered remarks at TechQuartier in Frankfurt, Germany, on May 16, 2024. In her speech, she highlighted the innovative approaches to climate, clean energy, and sustainable finance being pioneered by TechQuartier’s members.
Yellen noted the transatlantic connections between TechQuartier members and the United States, emphasizing the importance of private sector involvement in building clean energy industries to enhance energy security and spur economic growth.
Addressing recent global challenges such as the COVID-19 pandemic, Russia’s invasion of Ukraine, and climate change, Yellen stressed that these events have exposed vulnerabilities in global economies. She stated that while short-term actions have been taken to mitigate harm, long-term investments in resilient clean energy supply chains are necessary.
In the United States, Yellen pointed to the Inflation Reduction Act (IRA) as a significant legislative effort fueling investments in clean energy and manufacturing. According to Yellen, private companies have announced over $850 billion in investments since the start of the current administration. The IRA’s tax credits are also helping lower household energy costs.
Yellen acknowledged Germany’s leadership in green energy technologies and noted that government policies there have similarly fueled investment in green power. She emphasized that efforts between countries are mutually reinforcing and highlighted opportunities for German companies created by the IRA.
She also discussed “friendshoring,” an approach focused on deepening economic ties with trusted partners and allies to build resilient supply chains globally. This includes collaborations through initiatives like the Just Energy Transition Partnerships.
Yellen underscored that addressing climate change is both a moral imperative and an economic opportunity. However, she recognized significant obstacles ahead, including innovation needs and challenges posed by China’s industrial overcapacity in sectors like electric vehicles and solar technology.
Yellen reiterated her commitment to protecting workers and firms from unfair competition and expressed her desire for healthy green technology sectors worldwide. She concluded by expressing optimism about continued collaborative efforts towards achieving energy security and economic opportunity.
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