Legislation introduced by U.S. Sen. Diane Feinstein (D-CA) and U.S. Rep. Sean Casten (D-IL) earlier this month that seeks to mitigate risks from climate change within the financial system has gained support from a coalition of financial organizations.
The Addressing Climate Financial Risk Act, S. 588/H.R. 1549, would establish an advisory committee on climate financial risk within the Financial Stability Oversight Council (FSOC). The committee would consist of experts in climate science, climate economics and climate financial risk.
The committee would advise FSOC on how to improve the ability of the U.S. financial regulatory system to identify and mitigate climate risk. In addition, it would require federal bank and credit union regulatory agencies to update their supervisory guidance to include climate risk and develop a strategy to identify and mitigate climate financial risk.
“Our bill draws broad support because it’s becoming increasingly clear that climate change poses a serious threat to our financial system,” Feinstein said. “Reducing our carbon emissions is the best way to reduce that threat, but as
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