Cooperation between China and the US is “critical” to finance the fight against climate change, US Treasury Secretary Janet Yellen said today, on the second day of her visit to Beijing.

“I think continued cooperation between the US and China on climate finance is critical,” he told a panel of experts.

“As the two largest emitters of greenhouse gases in the world and the largest investors in renewable energy, we both have a shared responsibility — and ability — to lead the way,” he said, highlighting an area where Washington considers key to cooperation, despite strained bilateral relations.

Yellen’s visit comes a few weeks after that of Secretary of State Anthony Blinken, as the Biden administration looks to restore direct contacts with Beijing after three years of almost total isolation of China due to the health crisis.

“Climate change is number one on the list of global challenges, and the US and China must work together to address this existential threat,” Yellen said.

The US minister also said that “funding for the fight against climate change must be targeted in an effective way”, calling on China to support multilateral institutions such as the Green Climate Fund.

China suspended climate talks last summer in protest at a visit to Taiwan by former US House Speaker Nancy Pelosi.

But now there are signs of de-escalation: yesterday, a State Department official hinted that US special climate envoy John Kerry will visit China soon to discuss the possibility of cooperation with Beijing in the fight against climate change.