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Biden orders Yellen to outline climate risks to financial stability


First published on
Dive Brief:
The Biden administration issued an executive order Thursday giving Treasury Secretary Janet Yellen six months to recommend steps to reduce the risks to financial stability posed by climate change. Her assessment will incorporate financial regulators’ plans to boost climate-risk disclosures.
The order also asks National Economic Council Director Brian Deese and National Climate Adviser Gina McCarthy, in coordination with Yellen and the Office of Management and Budget, to identify and disclose, within 120 days, the extent of exposure government programs and assets have to climate risks.
Our modern financial system was built on the assumption that the climate was stable, and that assumption has largely dominated existing financial models, and it’s underpinned the way that we invest capital, the way that we have built society, and the way that we have forecasted for the long term,  Deese said Thursday, according to Bloomberg. T ....

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Climate cash: Next step for global bankers is to act on their pledges


At President Joe Biden’s Leaders Summit on Climate last week, one constituency was a group somewhat new to the green spotlight: financiers.
Banks and investors made some big-dollar pledges: Bill Gates on plans to rapidly commercialize clean technologies. Dozens of banks in a new Net-Zero Banking Alliance. And more.
Why We Wrote This
President Joe Biden has proposed expansive federal spending on climate action. But a recent summit emphasized something seen as just as vital: mobilizing private sector investment.
It’s encouraging, say climate policy experts, because such private funding is necessary for there to be any hope of limiting the world’s temperature rise to below 2 degrees Celsius – the global warming target set out in the 2015 Paris Agreement. ....

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Climate risk is about to reshape Wall Street — Quartz


January 27, 2021
On Jan. 25, the US Federal Reserve and European Central Bank simultaneously signaled their intent to make climate considerations a central part of finance. Both say they will now analyze the risk climate poses to the stability of individual banks, as well as the broader financial system.
The announcements are being welcomed by environmental groups as a way to “ensure that every financial decision takes climate change into account,” Giulia Christianson, who leads sustainable Investing efforts at the World Resources Institute, wrote by email.
The Federal Reserve will create a group of senior staff across the Fed system to “understand the potential implications of climate change for financial institutions, infrastructure, and markets.” The unit is being led by Kevin Stiroh, a respected Treasury official who previously headed up the Fed’s supervision unit as well as research into climate-related risks. Stiroh will now be charged with helping turn ....

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