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Financial stability is at risk from the climate crisis, regulators warn

Financial stability is at risk from the climate crisis, regulators warn

During a conference call with reporters on Thursday, Stephen Ledbetter, executive director and director, policy at FSOC, stated that climate change is a “emerging threat” to the financial stability in the United States.

'No country will be spared' from effects of climate change, Biden administration reports detail
The report of the council comes just 10 days prior to the United Nations Climate Change Conference, or COP26Is. Start now. The international talks will take places Glasgow

“This report shows that financial regulators are aware of the need to take action to prevent the next financial crisis from being caused by the climate crisis,” said Ben Cushing, the Sierra Club’s Fossil-Free campaign manager, stated in a statement.

He stated that the FSOC board did not include “key risk-reduction instruments,” which makes the report more vague. It also fails to treat climate change with the urgency it deserves.

“In addition to the risks from climate change, financial stability will be at stake if regulators don’t steer finance towards a more productive direction,” David Arkush (director of Public Citizen’s Climate Program) told CNN Business.

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He said that Wall Street is currently financing fossil fuels aggressively. “Investments that are not worth making as we move towards climate targets will be worthless.”

Recently, the International Monetary Fund shared the same sentimentCNN Business. Tobias Adrian is the director of IMF’s monetary & capital markets department. He said that the climate crisis could “absolutely” trigger a financial crisis.
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