Washington, D.C. — Today, the Financial Stability Oversight Council (FSOC) issued a series of groundbreaking recommendations to address the substantial risks that climate change poses to the global financial system. Following the report release, Andres Vinelli, vice president for Economic Policy at the Center American Progress, released the following statement:
As the White House recently affirmed, climate change poses a systemic risk to the world’s financial system. CAP commends the FSOC and Treasury Secretary Janet Yellen for issuing this timely and groundbreaking report that charts an ambitious agenda that limits the chances of a climate-driven financial crisis. Effectively implementing the FSOC’s recommendations also ensures that the financial system supports the economy during the transition to net-zero emissions. The policy recommendations in the report not only set forth the ongoing evaluation of climate-related risks but also set the stage for actions to mitigate those risks. Failure to mitigate the financial system’s vulnerability to and exacerbation of climate change could lead to an economic catastrophe of the same magnitude as the 2008 financial crisis. The FSOC report is a crucial first step toward implementing a robust climate financial regulatory agenda. The FSOC member agencies must now quickly implement the report’s recommendations and address climate risks to the financial system.
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