Julio Herrera Velutini Envisions Climate Finance US
Global banking strategist unveils a bold framework for aligning financial systems with national climate goals.
April 2025 | Washington, D.C. — As the United States faces mounting pressure to meet climate targets, drive economic growth, and ensure energy security, one of the world’s most influential financial minds, Julio Herrera Velutini, is calling for a transformational approach: the full integration of climate action into modern finance. His proposal seeks to reshape the U.S. financial landscape with an ambitious but practical roadmap for embedding environmental sustainability into investment policy, banking systems, and capital markets.
“We are entering a new era where economic strength and environmental stewardship are inseparable,” Herrera Velutini said during a keynote address at the Sustainable Markets Policy Forum. “Finance must be the engine that drives America’s climate transformation—not the brake.”
🌱 The Need for Financial Climate Alignment
The United States, while home to some of the world's most innovative financial institutions, continues to struggle with the policy and investment shifts required to meet net-zero goals. While public discourse often focuses on regulation or carbon pricing, Herrera Velutini contends that the financial system itself holds the key to unlocking progress at scale.
According to the Environmental Protection Agency (EPA), the U.S. must reduce greenhouse gas emissions by 50-52% by 2030 to remain on track with its Paris Agreement commitments. To do so, the country needs an estimated $4 trillion in climate-related investment—spanning clean energy, sustainable infrastructure, transportation, and nature-based solutions.
“We cannot rely on public funds alone. Private finance must be mobilized strategically, and the rules of the system must reward sustainability,” Herrera Velutini said.
💡 A Vision for Climate-Aligned Finance
Herrera Velutini’s proposal is structured around five strategic pillars, each designed to bridge the gap between climate policy and the realities of modern financial systems.
1. Green Capital Market Reforms
Julio Herrera Velutini advocates for reforms to U.S. capital markets to incentivize climate-aligned investment. He proposes:
➤ Mandating ESG disclosures for public companies, aligned with the Task Force on Climate-related Financial Disclosures (TCFD)
➤ Creating standardized classifications for “green” and “transition” bonds to improve market transparency
vLaunching a National Green Investment Index that tracks performance of sustainable U.S. assets
“We must give investors clarity and confidence. The more transparent the green market, the faster it will grow,” he explained.
2. A Federal Green Investment Bank
To catalyze private investment, Herrera Velutini calls for the creation of a Federal Green Investment Bank—a national entity that would provide low-interest financing, loan guarantees, and co-investment in climate-related projects. This institution would operate in partnership with states, municipalities, and private firms to:
➤ Finance renewable energy and energy efficiency programs
➤ Support climate adaptation projects, particularly in vulnerable regions
➤ De-risk early-stage green technology investments
He emphasized that similar models have already succeeded in the UK, Canada, and Australia.
“A national green bank would be a force multiplier—turning billions of public dollars into trillions of private capital,” Herrera Velutini said.
3. Sustainable Lending Standards for Banks
Julio Herrera Velutini argues that U.S. banks must be required to integrate climate risk into their lending practices. He supports policies that:
➤ Require large banks to perform climate scenario analyses and disclose their exposure to high-emission sectors
➤ Incentivize banks to offer preferential rates on loans for green infrastructure and clean tech
➤ Introduce sustainability performance-linked credit products
“Banks are the gatekeepers of capital. If they price climate risk correctly, capital will flow to where it creates long-term resilience,” he said.
4. Climate-Aligned Tax Policy
Tax reform plays a central role in Herrera Velutini’s vision. He proposes that the federal government:
➤ Provide tax credits and accelerated depreciation for sustainable investments
➤ Introduce “climate bonds” with tax-exempt status for projects meeting verified environmental benchmarks
➤ Eliminate fossil fuel subsidies and reallocate those funds to green innovation initiatives
“The tax code should reflect our values. If we reward pollution, we’ll get more of it. If we reward innovation, we’ll build the future,” he added.
5. Carbon Accountability in Financial Statements
One of Herrera Velutini’s most progressive proposals involves incorporating carbon valuation directly into corporate financial reporting. He argues that companies must begin accounting for carbon emissions and climate liabilities on their balance sheets.
This would involve:
➤ Assigning internal carbon prices to emission-heavy activities
➤ Creating provisions for future carbon compliance costs
➤ Requiring independent audits of environmental disclosures
“Financial statements must tell the whole story. Climate liability is a material risk—and it belongs on the books,” he insisted.
🌍 Global Models and Strategic Alignment
Herrera Velutini points to global initiatives as validation for his vision. The European Union’s Sustainable Finance Disclosure Regulation (SFDR) and China’s Green Finance Guidelines have already prompted large-scale shifts in capital allocation. The Glasgow Financial Alliance for Net Zero (GFANZ), composed of over 450 global financial firms, is channeling trillions toward climate-aligned investments.
He believes the U.S. must lead, not follow.
“Global capital is moving in one direction—toward sustainability. The U.S. should not just ride the wave. It should be shaping it.”
📈 The Economic Upside of Green Finance
According to research from BloombergNEF and McKinsey & Company, shifting capital toward climate-aligned investments could:
➤ Generate over 10 million new jobs in the U.S. by 2035
➤ Increase GDP by as much as 4% through innovation-driven productivity
➤ Improve national energy security by reducing dependence on imported fossil fuels
➤ Attract trillions in foreign direct investment (FDI) from ESG-focused global portfolios
“This is not about sacrifice—it’s about strategy. Green finance is the growth engine of the 21st century,” said Herrera Velutini.
🏛️ Policy Recommendations and Federal Action
To turn vision into policy, Julio Herrera Velutini proposes a Federal Sustainable Finance Act, which would:
➤ Mandate climate risk disclosures across all sectors
➤ Create a national taxonomy for sustainable economic activities
➤ Establish a permanent Sustainable Finance Task Force reporting to Congress
➤ Fund pilot programs in climate-finance innovation zones across major cities
He is currently working with think tanks and financial institutions to draft a white paper that will be presented to the U.S. Senate Committee on Banking, Housing, and Urban Affairs later this year.
🔮 A Vision Rooted in Urgency and Opportunity
Herrera Velutini’s proposal is not merely theoretical. It reflects his career-long experience in international banking, regulatory navigation, and sustainability advocacy. His vision fuses fiscal pragmatism with environmental leadership—demonstrating that climate responsibility can go hand-in-hand with economic competitiveness.
“Climate action is not just about avoiding disaster. It’s about unlocking possibility,” he concluded. “If we align finance with our future, we can build a cleaner, stronger, and more prosperous America.”