US Treasury creates climate hub to coordinate tax, economic policy

WASHINGTON: US Treasury Secretary Janet Yellen announced on Monday the creation of a new climate office to oversee tax and economic policies to support the administration's efforts to combat climate change.

The announcement comes just days before President Joe Biden hosts a virtual climate summit, and Treasury said the position aims to mobilize resources for climate-friendly investments.

"Climate change requires economy-wide investments by industry and government as well as actions to measure and mitigate climate-related risks to households, businesses and our financial sector," Yellen said in a statement. She tapped John Morton to lead Treasury's new Climate Hub office and "ensure that Treasury is doing everything it can to respond to climate change while creating opportunities that strengthen our economy."

Morton served in former president Barack Obama's White House overseeing energy and climate change on the National Security Council. Biden has made environmental issues a central focus of his administration, announcing the US will rejoin the Paris Climate agreement and making investments in renewable energy a key part of his massive $2 trillion jobs and infrastructure proposal.

He has invited 40 leaders to participate in the April 22-23 summit, and will set the stage for the summit by unveiling what are expected to be ambitious new US targets for reducing emissions responsible for climate change. "Climate change presents new challenges and opportunities for the US economy," Yellen said. "Finance and financial incentives will play a crucial role in addressing the climate crisis at home and abroad and in providing capital for opportunities to transform the economy."