US Treasury, Brazil agree on climate pact

The US Treasury and Brazil's finance ministry will work together on a climate agenda, the countries said during a G20 working group meeting in Rio de Janeiro.

The pact will focus on four fronts: bolstering clean energy supply chains, including developing policy tools to attract private sector investment; supporting efforts to improve voluntary carbon markets; securing financing and developing "innovative solutions" to conserve and restore nature and biodiversity, including through the multilateral development banks and climate funds; and facilitating countries' access to multilateral climate funds resources.

The partnership was announced on Friday by both Brazil's finance minister Fernando Haddad and US Treasury Secretary Janet Yellen.

"Advancing work on climate and on nature and biodiversity can bring benefits not only to both of our economies but also to the region and to the global economy," Yellen said. Haddad added that the two countries "want to work together more closely."

The G20 — which is presided by Brazil this year — is holding this week the finance leaders' meeting. The group announced on Thursday a new fund to finance sustainability programs in the Amazon rainforest.

This is also not the first time the G20 has discussedbe easing access to climate funds. A working group said in May that both countries and individual cities' access to such resources needs to be easier.

The G20 announced other joint agreements this week, including the taxation of large fortunes and efforts to reduce inequality, poverty and world hunger.

By Lucas Parolin