Nineteen Democrats and one independent are calling on US financial regulators to do more to address the financial risks posed by climate change.
Lawmakers led by Sen. Elizabeth Warren (D-Mass.) and Rep. Sean Kasten (D-Ill.) sent a letter Thursday to leaders of the Federal Reserve, the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation (FDIC) calling for further action.
“The U.S.’ lack of progress and innovation in establishing strong measures to address the financial and economic risks of climate change places the United States behind the international community and is counterproductive to U.S. interests,” they wrote.
This letter in particular Bloomberg He said U.S. regulators had reversed efforts to give greater weight to climate risks in international financial rules.
“We urge you to take decisive action on climate risks and stop obstructing progress on international financial rules,” the Democrats wrote to regulators.
They and others who have called for greater climate considerations in monetary policy point to both the physical risks posed by the increasing frequency and intensity of extreme weather events.
Proponents of greater climate consideration also point to “transition risks” arising from changes in the economy resulting from efforts to reduce carbon emissions and cut fossil fuel use.
But considering climate issues in investment and monetary policy is also a contentious issue: Republicans oppose climate-conscious investments and argue that those who want to consider climate in monetary policy are trying to tilt the balance towards greener industries.
The FDIC declined to comment. A Fed spokesman said only that “we have received the letter and will respond.” The OCC did not immediately respond to a request for comment.
