“It is important to recognize that there are several political levers and paths that countries will take to create incentives for decarbonization,” Yellen said during a panel discussion. “These could include legislative measures, standards, direct public investment, public subsidies for private investment incentives and carbon markets.”
She added: “Our policies must have the common goal of providing the public and private sectors with clarity, incentives and resources to reduce emissions.”
Mrs Yellen, taking her second international trip as finance minister, is holding bilateral meetings with many of her colleagues, including officials from Saudi Arabia, Japan, Turkey and Argentina. China, which signed the global minimum tax framework, is not expected to send officials to the assembly of finance ministers and central bank governors, so there will be no discussions between the world̵
The forum will be another opportunity for the Biden administration to demonstrate the renewed commitment to multilateralism from the United States.
Saint-Amans expressed optimism about the course of the tax negotiations, which was about life support in the last year of the Trump administration, and largely attributed it to the new diplomatic approach from the United States.
“It required a US election, and some work in the OECD,” he said.
During the panel discussion on taxes and climate change, Mrs Yellen’s colleagues said they valued the spirit of cooperation from the United States.
Chrystia Freeland, Canada’s Deputy Prime Minister and Minister of Finance, said having the United States back on the table to fight climate change was “welcome” and “transformative”. Le Maire thanked the Biden administration for rejoining the Paris Agreement.
“The United States is back,” he said.
Liz Alderman contributed reporting from Paris.