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Copenhagen Consensus president and environmentalist Bjorn Lomborg discusses California leaders blaming climate change for wildfires, Treasury Secretary nominee Scott Bessent’s confirmation hearing and climate policy in the US
The Federal Reserve announced on Friday that it has withdrawn from a global climate change regulatory body because of its activities that exceed the scope of the Fed’s legal authority.
The Fed came out of the Network of Central Banks and Supervisors for the Green Financial System (NGFS), which was created in 2017 to help facilitate the advancement of green finance and climate policy. The group develops policy recommendations for central banks and financial regulators to play a role in combating climate change incorporating climate risks into their oversight work.
In 2020, the Federal Reserve joined the NGFS as a permanent member, and the organization had more than 100 central banks and financial regulators as members.
“While the Council has appreciated the engagement with the NGFS and its members, the work of the NGFS has increasingly expanded in scope, covering a wider range of issues that are outside the Council’s statutory mandate” , the Council said in a statement.
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The Federal Reserve announced its departure from the Financial System Ecologist’s Network of Central Banks and Supervisors, citing the group’s increasingly broad regulatory focus. (iStock/iStock)
In recent years, the Fed has taken some steps to integrate climate change into its work through the use of preliminary analyzes and reports.
However, Jerome Powell, chairman of the Fed has repeatedly insisted that the Fed is not responsible for setting climate change policy and that these issues are under the authority of Congress.
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Federal Reserve Chairman Jerome Powell has said Congress, not the Fed, is responsible for climate rules. (Alex Wong/Getty Images/Getty Images)
The Fed’s announcement comes ahead of the inauguration of President-elect Trump for his second term in the White House, which will begin on Monday.
Trump has criticized government efforts to pursue climate change policies.
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Reuters contributed to this report.
