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‘Enormously big deal’: Fed creates climate committee Source: By Avery Ellfeldt, E&E News reporter • Posted: Tuesday, January 26, 2021
Jerome Powell, chair of the Federal Reserve, on Capitol Hill last month. The central bank created its first-ever committee yesterday to study the effects of climate change on the financial system. CNP/AdMedia/Sipa/Newscom
The Federal Reserve announced yesterday the creation of a first-of-its-kind committee chaired by a senior-level official to deepen the central bank’s understanding of the risks that climate change poses to the financial system.
Kevin Stiroh, who currently leads the New York Fed’s supervisory work, has been tapped for the job, which will entail tackling global warming alongside senior staff throughout the central banking system. That includes the Federal Reserve Board and the Fed’s 12 reserve banks across the country.
Christine Lagarde: Climate change and central banking
Keynote speech by Ms Christine Lagarde, President of the European Central Bank, at the ILF conference on Green Banking and Green Central Banking, Frankfurt am Main, 25 January 2021. Central bank speech |
In the famous fable Belling the Cat , a group of mice gather to discuss how to deal with a cat that is eating them one by one. They hatch a plan to put a bell on the cat so they can hear it coming and escape before being caught. When it comes to who will actually do it, however, each mouse finds a reason why they are not the right mouse for the job, and why another mouse should do it instead. The cat never does receive a bell – and the story ends poorly for the mice.
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Janet Yellen confirmed as first female US Treasury secretary - Here s what she can do about climate change
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Janet Yellen confirmed as first female US Treasury secretary - Here s what she can do about climate changeAP
Last Updated: Jan 26, 2021, 10:12 AM IST
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She can help guide the U.S. to the sweet spot of immediate growth that also puts the country on the path toward a cleaner, more resilient future. This means measures that steer investment and job creation in the sectors of the future, including clean energy, energy efficiency, clean transport and resilient agriculture.
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It followed an earlier announcement from the ECB that it would use part of its own funds to invest in a euro-denominated green bond investment fund. The fund was established by the Bank for International Settlements, an international organization owned by central banks.
The BIS fund invests in bonds that support renewable energy production, energy efficiency and other environmentally-friendly projects.
Yet campaigners said the ECB needed to go further, in particular by reconsidering the bonds it buys through its €1.85 trillion ($2.24 trillion) coronavirus asset-purchase program.
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Paul Schreiber of campaign group Reclaim Finance said the ECB is trying to use the purchase of
Climate Change And Central Banking - Keynote Speech By Christine Lagarde, President Of The ECB, At The ILF Conference On Green Banking And Green Central Banking Date
In the famous fable “Belling the Cat”,
[1] a group of mice gather to discuss how to deal with a cat that is eating them one by one. They hatch a plan to put a bell on the cat so they can hear it coming and escape before being caught. When it comes to who will actually do it, however, each mouse finds a reason why they are not the right mouse for the job, and why another mouse should do it instead. The cat never does receive a bell – and the story ends poorly for the mice.