On a particularly hot day in July 1997, Janet Yellen asserted that the harmful effects of the accumulation of greenhouse gases were not to be seen till after several decades. Now the world is witnessing the devastation brought about by the dreaded fires spreading in Western America, as well as the severe storms hitting the coastal cities. And it might be time for Biden’s new elect to lead the treasury to realize just how dreadful the crisis has become.
A crucial aspect of Biden’s presidential campaign was his approach to dealing with climate change. He promised to omit the harmful omissions that are contributing greatly to global warming, as well as to adapt a world already affected by it. This was one of the drastic differences between his and President Trump’s platforms.
If elected as the new head of Treasury, Yellen would have funds which, if approved by Congress, could be directed towards funding all the industries that are imperative in helping achieve America’s climate objectives. These would include sectors focused on clean energy, as well as insulating the low-income houses.
According to an expert on climate policy, there is a great need to provide economic relief as well as recovery; a need which could be fulfilled by Yellen.
Yellen also founded the Climate Leadership Council – a group of economists, corporations, and cross-party politicians who want the carbon tax to be implemented. That would gradually help minimize the use of damaging fossil fuels. The carbon tax is seen by many as the best cure for global warming. Yeller publicly asked for a carbon tax last year. However, this alone cannot bring about a change at a rate necessary to keep global warming at an acceptable rate. These measures can also prove to be hazardous politically; the French citizens protested strongly in 2018 against the rising gas prices. The increase in prices had been a way to gain funds for climate efforts, but this move led to riots. Another economist thinks a combination of the carbon tax along with other policies would work better.
Activist groups are expecting Yellen to work with them. This time, the campaign of the climate movement is surging upwards. They are aiming for those who are financing fossil fuels. This has the potential to work since the key to avoiding disastrous climate change is to keep the harmful fuels below the ground.
If Yellen decides, she could try and force the World Bank to stop investments in fossil fuels. She could also implement the Dodd-Frank Law of 2011, or use the council that was started to stave off the contagion effect brought about by a market crash.
Yellen might not have been the first choice for everyone. Senator Elizabeth Warren or Sarah Bloom Raskin were other top contenders. Climate activists thought she seemed less serious about the changing climate. Wall Street was supporting Lael Brainard. However, since Yellen is receptive to climate issues and has shown malleability in the face of pressure, activists are hopeful she could be just the thing they need to finally combat climate change.