Copenhagen Consensus Chair and environmentalist Bjorn Lomborg discusses California leaders blaming climate change for wildfires, the confirmation hearing for Treasury Secretary nominee Scott Bessent, and the climate policy in the United States.
THE Federal Reserve announced Friday that it had withdrawn from a global climate change regulator because of its activities beyond the scope of the Fed’s legal authority.
The Fed left the Network of Central Banks and Supervisors for a Greener Financial System (NGFS), 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 by integrating climate risks into their monitoring work.
In 2020, the Federal Reserve joined the NGFS as a permanent member, and the organization counted more than 100 central banks and financial regulators among its members.
“While the Council has valued engagement with the NGFS and its members, the work of the NGFS has increasingly broadened its scope, covering a wider range of issues that fall outside the Council’s statutory mandate,” said the Council in a press release.
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The Federal Reserve announced its departure from the Network of Central Banks and Supervisors for a Greener Financial System, citing the group’s increasingly broad regulatory focus. (iStock/iStock)
In recent years, the Fed has taken some steps to incorporate climate change into its work using preliminary analyzes and reports.
However, Fed Chairman Jerome Powell has repeatedly insisted that the Fed is not responsible for setting policy on climate change and that such matters fall within the authority of Congress.
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Federal Reserve Chairman Jerome Powell said Congress, not the Fed, is responsible for climate rules. (Alex Wong/Getty Images/Getty Images)
The Fed’s announcement comes before the inauguration of President-elect Trump for his second term in the White House, which is expected to begin Monday.
Trump has criticized the government’s efforts to pursue climate change policies.
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Reuters contributed to this report.
