Paulson Says Paris Agreement Must Focus on Biggest Economies

The Paris climate agreement needs to focus on the biggest economies rather than all of them, said former Treasury secretary Hank Paulson.

“We need to take Paris to the next step,” Paulson said in an interview at Bloomberg’s Year Ahead event on Wednesday. “We are going to need new mechanisms to bring major economies together.”

Paulson Says Paris Agreement Must Focus on Biggest Economies

Paulson, who joined TPG this month to help run a fund that will invest in companies fighting climate change, also said participants in the agreement need to work to discourage free-riding, a term that refers to countries that haven’t played a role in combating the crisis.

Tackling climate issues will be more challenging than the difficulties he and other officials faced during the 2008 financial meltdown, he said.

Paulson also praised the appointment of former Federal Reserve chair Janet Yellen as Treasury secretary and said “she understands climate cold. She has been looking at it a long time.”

The fund run by Paulson will look to target various sectors such as solar, electric vehicles and agriculture.

©2021 Bloomberg L.P.

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