Yellen Backs Aligning U.S. Portfolios With Climate Goals (1)

Treasury Secretary Janet Yellen on Tuesday outlined her department’s plans on fighting climate change with remarks that are likely to ramp up a dispute with Republican lawmakers over the appropriate use of financial regulation on that front.

Yellen said the Biden administration would “encourage financial institutions to credibly align their portfolios and strategies with the objectives of the Paris Agreement,” the international accord to which the Biden administration recently recommitted the U.S.

The Treasury will also seek to align tax policy with climate goals, “including a transition to a decarbonized economy,” Yellen said in the text of remarks delivered at...