The climate crisis is an 'emerging threat' to financial stability, US regulators say

Climate change is an “emerging threat to the financial stability of the United States,” Stephen Ledbetter, the chief director and director of coverage on the FSOC, mentioned throughout a name with reporters Thursday.

'No country will be spared' from effects of climate change, Biden administration reports detail
The council’s report comes simply 10 days earlier than the United Nations Climate Change Conference, or COP26, is set to begin. The worldwide talks will happen in Glasgow.

“This report makes it clear that financial regulators understand the need for action to ensure that the climate crisis doesn’t cause the next financial crisis,” mentioned Ben Cushing, supervisor of the Sierra Club’s Fossil-Free marketing campaign, mentioned in a press release.

He emphasised that the FSOC board omitted “key risk-reduction tools,” which makes the report extra imprecise and fails to deal with local weather change “with the urgency it deserves.”

“On top of the threats from climate change itself, climate solutions will threaten financial stability if regulators don’t steer finance in a more productive direction,” David Arkush, the director of Public Citizen’s Climate Program, instructed CNN Business.

“As of now, Wall Street is aggressively financing fossil fuels,” he added. “Investments that will become worthless as we make progress on climate targets.”

The International Monetary Fund not too long ago shared the same sentiment with CNN Business. Tobias Adrian, the director of the IMF’s financial and capital markets division, mentioned the local weather disaster might “absolutely” ignite a monetary disaster.

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