Federal Reserve exits global climate change regulation group
Copenhagen Consensus President and environmentalist Björn Lomborg discusses California leaders blaming climate change for wildfires, Treasury nominee Scott Besant’s confirmation hearings and climate policy in the US.
It Federal Reserve announced on Friday that it was withdrawing from the global climate change regulation panel because of its activities that went beyond the scope of the Fed’s legal authority.
The Fed came out of the Network of Central Banks and Supervisors for Greening the Financial System (NGFS), which was created in 2017 to help advance green finance and climate policy. The group is developing policy recommendations for central banks and financial regulators to play a role in the fight against climate change incorporating climate risks into their oversight work.
In 2020, the Federal Reserve joined the NGFS as a permanent member, and the organization has more than 100 central banks and financial regulators as members.
“While the Board has valued engagement with the NGFS and its members, the work of the NGFS has increasingly expanded to encompass a broader range of issues beyond the Board’s statutory mandate,” the board said in a statement.
FED MINUTES SHOW POLICY MATCHES SEE IMMIGRATION, TARIFF MOVE CREATES INFLATION UNCERTAINTY;
The Federal Reserve announced its departure from a network of central banks and supervisors to green the financial system, citing the group’s broader regulatory focus. (iStock / iStock)
In recent years, the Fed has taken some steps to integrate climate change into its work, using preliminary analyzes and reports.
However, Fed Chairman Jerome Powell has repeatedly argued that the Fed is not responsible for climate change policy and that those matters fall within the purview of Congress.
IN DECEMBER INFLATION INCREASED BY 2.9%, IN ACCORDANCE WITH EXPECTATIONS.
Federal Reserve Chairman Jerome Powell has said Congress, not the Fed, is responsible for climate regulation. (Alex Wong/Getty Images/Getty Images)
The Fed’s announcement came before the inauguration President-elect Trump For his second term in the White House, which is set to begin Monday.
Trump has criticized the government’s efforts to address climate change policy.
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Reuters contributed to this report.
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