US Treasury Department Establishes Hub to Coordinate Climate Change Policies

Coordination of Economic and Tax Policies for Climate Change Response

(Photo by Ben Hider, WSJ / Getty Images for Concordia Summit)

[Asia Economy Reporter Yujin Cho] On the 19th (local time), the U.S. Department of the Treasury established a new position to coordinate economic and tax policies for climate change response and appointed John Morton, a former climate advisor in the Barack Obama administration, according to the Wall Street Journal (WSJ).

Morton served as the senior director for energy and climate at the National Security Council (NSC) during the Obama administration.

Going forward, Morton will report directly to Treasury Secretary Janet Yellen and focus on securing investment funding necessary for reducing carbon gas emissions.

In a statement on the same day, Secretary Yellen said, "Finance and financial incentives will play a crucial role in providing capital for addressing domestic and international climate crises and opportunities to transform the economy."

WSJ evaluated that Secretary Yellen has made climate change response a major policy priority of the Treasury Department, shifting the department's stance which had not explicitly focused on this issue until now.

The establishment of the climate hub position reflects the Biden administration's climate change response policy to measure and intensively address the impact of climate change on industries.

Earlier, Gary Gensler, the newly appointed chairman of the Securities and Exchange Commission (SEC), emphasized the need to strengthen disclosure requirements for listed companies so that investors can transparently understand the impact of climate change on corporate activities, which aligns with this context.

President Biden, who has emphasized active climate change response, will present the United States' new carbon emission reduction targets and propose international cooperation measures to address climate change at the climate summit attended virtually by leaders of 40 countries on the 22nd and 23rd.

CNBC predicted, "President Biden will announce new carbon emission reduction targets during the summit and urge cooperation with other countries to overcome the climate crisis." It added, "This meeting is an opportunity for the U.S. to re-engage in global efforts to address climate change after the Donald Trump administration withdrew from the Paris Agreement and dismantled environmental regulations."