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Tomorrow, Treasury Secretary Janet Yellen will lead a meeting of the Financial Stability
Oversight Council (FSOC). The preliminary agenda for the open
session includes climate change and its potential impacts on
financial stability.
Appearing before Congress last week, Secretary Yellen stressed
the importance of FSOC and its unique role in coordinating
responses to issues like climate change. She specifically noted
that climate change is a top priority of the Biden
[a]dministration and FSOC can play a role in arranging
discussions among financial regulators all of whom have
How central banks are tackling climate change risks
(Credit: Unsplash)
This article is brought to you thanks to the collaboration of The European Sting with the World Economic Forum.
Author: Silvia Anna Ainio, Policy Officer, European Commission
Central banks have an increasingly critical role in tackling climate change policy objectives.
Incorporating climate-related risks into regulatory frameworks remains challenging but central banks are starting to lead the way.
The case for incorporating climate change into macroeconomic modeling and investment decisions has never been stronger. Extreme weather events such as floods and storms have now become more frequent, and their impact on growth and inflation is increasingly visible and felt around the world. Recent research has shown how climate change can have a strong impact on the stability of the global banking system by increasing the frequency of banking crises in the medium to long-term.
Ben Cahill
Energy Security and Climate Change Program
The Biden administration, mindful that its climate policies could hasten the already steep decline of the coal industry, aims to revitalize coal-dependent communities. President Biden’s climate-focused executive order signed on January 27 established an interagency working group to support vulnerable communities.
The group’s first report highlights 25 energy communities that are potentially at risk and identifies $38 billion in available federal funding to invest in infrastructure, broadband, small businesses, and local financial institutions. Environmental remediation will be a priority, building on President Biden’s plan to invest up to $16 billion in plugging orphaned oil and gas wells and reclaiming abandoned mines. The Biden administration plans to hold a series of town hall discussions in these communities, in an important step toward engaging local voices to find solutions rooted in each region’s particular needs
Yesterday (Thursday April 22) was Earth Day. To mark the occasion, President Biden hosted something called a virtual Leaders’ Climate Summit.
The leaders of major carbon emitting nations joined virtually and pledged to decarbonize the global economy. Biden even said he’d launch an international climate finance plan to underwrite it.
The virtual summit was a bullet point in Biden’s January 27, 2021, climate crisis executive order. The stated intent of the order is:
“…to tackle the climate crisis at home and abroad while creating good-paying union jobs and equitable clean energy future, building modern and sustainable infrastructure, restoring scientific integrity and evidence-based policymaking across the federal government, and re-establishing the President’s Council of Advisors on Science and Technology.”
This Earth Day, The Financial Markets Woke Up To Climate Risk forbes.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from forbes.com Daily Mail and Mail on Sunday newspapers.