Washington, D.C. — Local weather change poses vital dangers to the protection and stability of the monetary system. The local weather disaster is driving extra frequent and extreme excessive climate occasions, in addition to long-term environmental shifts corresponding to sea-level rise. These bodily results can scale back financial exercise, disrupt provide chains, harm bodily property, and in the end lower the worth of a variety of monetary property. As well as, the continuing and needed transition to a low-carbon financial system might set off large-scale losses for monetary corporations’ misplaced bets on fossil fuel-reliant firms. Banks, insurance coverage firms, funding funds, and different monetary establishments are all susceptible to climate-related losses by way of the businesses and property they finance or insure.
Given the harm that local weather change might inflict on the monetary system and broader financial system, international central banks and regulators have begun to combine local weather threat into their monetary regulatory frameworks. Over the previous 12 months, momentum has began to construct domestically, and the problem needs to be a high precedence for U.S. regulators within the new 12 months. Safeguarding the monetary system towards climate-related dangers would defend each companies and households, which depend on a steady monetary system to thrive. It could additionally assist financial and environmental justice, as communities of coloration are disproportionately harmed by each local weather change and monetary crises.
Please be part of the Heart for American Progress for a dialog with federal and state policymakers on addressing local weather threat by way of monetary regulation.
Sen. Brian Schatz (D-HI)
Rostin Behnam, Commissioner, Commodity Futures Buying and selling Fee
Allison Herren Lee, Commissioner, Securities and Change Fee
Martin J. Gruenberg, Director, Federal Deposit Insurance coverage Company
Linda A. Lacewell, Superintendent, New York State Division of Monetary Companies
Andres Vinelli, Vice President for Financial Coverage, Heart for American Progress
Sen. Sherrod Brown (D-OH), Rating Member, U.S. Senate Committee on Banking, Housing, and City Affairs
December 18, 2020, 10:00 a.m.–12:15 p.m. ET
It’s essential to RSVP to look at the livestream occasion by clicking this link. An electronic mail will then be despatched with directions on how you can watch.
For extra data or to talk to an knowledgeable, please contact Julia Cusick at gro.ssergorpnacirema@kcisucj.