Washington, DC – Yesterday, the Federal Reserve’s Vice Chair of Supervision Michael Barr outlined a broad agenda in a speech that referenced the need for climate change preparations and safety and fairness of the finance industry. Barr said that the Federal Reserve plans to perform an analysis of lenders’ climate change financial risks next year and are working on ways for banks to “identify, measure, monitor, and manage the financial risks of climate change.” Barr said the Fed is also considering how to develop and implement climate risk scenarios.
Emily Park, Campaign Manager for 350.org’s Federal Reserve campaign made the following statement:
“Michael Barr’s comments are welcome and come just two weeks after 350.org and partners held actions outside the Jackson Economic Symposium where the board of the Federal Reserve were meeting to assess the economy. Clearly our work is breaking through. We look forward to the Federal Reserve taking these important first steps to measure and manage financial risks caused by climate change.
“However, we encourage Barr to rethink his position that the Fed’s mandate in this area is narrow. The climate crisis is already impacting every aspect of the US and global economies, and is a direct threat to the stability of our banking systems – which very much is the Fed’s concern. We urge the Fed in this process to go further and assess banks assets in fossil fuels, and use existing regulatory tools to begin limiting and phasing down the financing of emissions.
“With record breaking heat waves, floods, droughts, and hurricanes that cost billions of dollars in recovery, all the while the fossil fuel industry continues to benefit from its impact on our climate, it’s time for the Fed to take ownership of its role to regulate risk to ourselves and our economy. ”
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For more on the Fossil Free Federal Reserve campaign and our demands, go to: https://fossilfreefederalreserve.com/demands/
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