(Reuters) – Weather disasters linked to global warming are increasingly reducing the productive capacity of the U.S. economy, U.S. Treasury Secretary Janet Yellen said on Tuesday And consume the government’s resources, advocates accelerating the transition to renewable energy.
Yellen most recently touted Democratic President Joe Biden’s legislative achievements in a series of campaign-style economic speeches, including $430 billion dollars in climate and Health care spending plans, saying weather-related shocks are exacerbating supply chain difficulties.
“These are the recent sharp declines in capacity that could drive up prices. The reality is that shocks that were unimaginable even a few decades ago are now occurring with alarming frequency,” Yellen Speaking in preparation for a speech at Cypress Creek Renewables, a solar developer in Durham, North Carolina.
s, even after adjusting for inflation.
Yellen’s comments came as Hurricane Ian hit Cuba and headed toward Florida’s Gulf Coast, threatening a potentially devastating storm surge in the Tampa Bay area , with up to 2 feet of rain.
Yellen said sustained, frequent weather shocks will increase demand for fiscal relief and shrink state resources, including those needed to combat climate change
“State and local governments may increasingly be forced to devote scarce resources to disaster mitigation, possibly at the expense of investments in areas such as education and worker training,” Yellen said. “And most of the evidence suggests that these disasters There was a long-term negative impact on economic growth—many economies failed to fully recover. “
Climate and health care package passed by Democrats provides $ billions of dollars to expand and expand solar and wind energy and North American production Tax credits for electric vehicles, prompting increased investment in these technologies. It also provides 50 $1 billion to make infrastructure more resilient to climate events.
Yellen said in the coming weeks that the Treasury Department will hold a series of roundtable discussions with a wide range of stakeholders on how to implement these tax credits to ensure they without a clear understanding so that the benefits can be felt quickly.
“In conclusion, climate change poses serious risks to the productive capacity of our economy, as well as to its stability,” Yellen said. To address these risks, we need to accelerate the transition to a clean energy economy. ”