US Federal Reserve joins global club of peers in climate change fight


The said on Tuesday it has joined an group of central banks focused on risk, a signal that the Fed could move to incorporate the impacts of global warming into its regulatory writ.


The Fed’s membership in the Network of Central Banks and Supervisors for Greening the Financial System (NGFS) comes after a yearlong collaboration, the Fed said. It had been the only major global central bank besides the Reserve Bank of India that was not a member of the NGFS.


“As we develop our understanding of how best to assess the impact of on the financial system, we look forward to continuing and deepening our discussions with our NGFS colleagues from around the world,” Fed Chair Jerome Powell said in a statement announcing the move.




For years, the Fed has stayed on the sidelines as other central banks pushed to use their regulatory and research clout to mitigate the effects of global warming, including potentially abrupt price changes from climate-related disasters that could reverberate through financial markets.


But that has been changing recently. Last month, the Fed included for the first time in its regular assessment of financial stability vulnerabilities.


Powell has said that making sure the financial system is “resilient” against climate change fits with the Fed’s congressionally assigned mandates.


But doing so could be politically fraught. Republican President Donald Trump has called climate change a “hoax,” and he exited the Paris Accord that Democratic predecessor President Barack Obama had signed on to.


Democratic President-elect Joe Biden has said he will rejoin the climate pact.


Last week, 47 Republican lawmakers, including about a third of the House financial services committee that helps oversee the Fed, wrote to Powell urging him not to join the group, raising concerns that climate-oriented regulations could make it difficult for oil and gas companies to access capital.


On Tuesday, Senator Brian Schatz of Hawaii, a Democrat, said he expects “further concrete steps” from the Fed on climate change, including using tools like stress testing.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor



Source link

Latest

Former Nepal PM Baburam Bhattarai will not contest general elections

Six weeks ahead of the elections, Baburam Bhattarai, former...

The Lebanese farm regenerating soil and promoting food security

Beqaa Valley, Lebanon – At 11am, Erica Accari retreats...

What is happening in South Africa? A look at the energy crisis

For years, South Africa has been in the midst...

Former Nepal PM Baburam Bhattarai will not contest general elections

Six weeks ahead of the elections, Baburam Bhattarai, former Prime Minister and a key architect of the Maoist insurgency that lasted for a decade...

Phone Bhoot: Katrina Kaif plays a ghost; it’s an encounter you can’t afford to miss : Bollywood News – Bollywood Hungama

Katrina Kaif is all set to experiment with her characters and has now decided to play the role of...