The Federal Reserve is out of the group that controls global climate change
Copenhagen Consensus president and environmentalist Bjorn Lomborg discusses California leaders who blame climate change for wildfires, Treasury Secretary nominee Scott Bessent’s confirmation hearing and US climate policy.
The Federal Reserve announced on Friday that it has withdrawn from the global climate change watchdog because of its activities that exceed the scope of the Fed’s legal authority.
The Fed has left the Network of Central Banks and Supervisors for Greening the Financial System (NGFS), which was established in 2017 to help advance the development of green finance and climate policy. The group develops policy recommendations so that central banks and financial regulators can participate in the fight against climate change by including climate risks in their monitoring work.
In 2020, the Federal Reserve joined the NGFS as a permanent member, and the organization had more than 100 major banks and financial regulators as members.
“Although the Board is pleased to work with the NGFS and its members, the work of the NGFS has grown, encompassing many issues outside the legal mandate of the Board,” the Board said in a statement.
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The Federal Reserve announced its departure from the Network of Central Banks and Supervisors for Greening the Financial System, citing the group’s broader regulatory focus. (iStock / Stock)
In recent years, the Fed has taken some steps to integrate climate change into its work through preliminary analysis and reports.
However, Fed Chairman Jerome Powell has repeatedly emphasized that the Fed is not responsible for setting climate change policy and that those issues fall under the jurisdiction of Congress.
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Federal Reserve Chairman Jerome Powell said Congress, not the Fed, is responsible for climate regulation. (Photos by Alex Wong / Getty Images)
The Fed’s announcement comes ahead of President-elect Trump’s inauguration for his second term in the White House, which is expected to begin on Monday.
Trump has criticized the government’s efforts to pursue climate change targets.
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Reuters contributed to this report.
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