Treasury Secretary Janet Yellen Claims Effects Of Climate Change Could ‘Cascade Through The Financial System’
Treasury Secretary Janet Yellen On Tuesday, they argued that climate change This could lead to “declines in asset values” Warning: “delayed and disorderly transition” Renewable energy could cause damage to the environment financial system.
Yellen made the remarks at the Climate-Related Financial Risk Advisory Committee’s first meeting. This committee was created in order to address climate-related financial risk. “understand and mitigate the risks that climate change poses” Economic stability. According to the economist, these remarks echo statements from Biden officials that carbon emissions can have an economic impact.
“As climate change intensifies, natural disasters and warming temperatures can lead to declines in asset values that could cascade through the financial system,” Yellen spoke in prepared remarks, which were received by The Daily Wire. “And a delayed and disorderly transition to a net-zero economy can lead to shocks to the financial system as well. These impacts are not hypothetical. They are already playing out.”
Yellen cited California wildfires and storms that erupted in Florida and Louisiana to prove climate change’s economic impact, even though it was not supported by scientists. reject It is believed that certain weather phenomena are connected to a warmer climate. “Taking climate change into account is prudent risk management,” Yellen nevertheless continued. “Our work builds on the scientific consensus regarding the projected effects of climate change and is based on a widely accepted understanding of how the financial system works.”
Catherine Ansell (executive director, climate risk, investment bank JPMorgan Chase), and Cecilia Martinez (principal advisor, resilience, communities, at the Bezos Earth Fund) are both members of the Climate-Related financial Risk Advisory committee. The Financial Risk Advisory Committee established the committee last year. According to a report, many academics sit on this body. press release The Treasury Department.
“Some of you have very specialized expertise in modeling climate risks and working with climate data,” Yellen said. “Others have experience helping financial institutions respond to and manage their own climate risks. And others have experience advancing environmental justice. I’m excited for this group to begin meeting, and for us to benefit from your expertise.”
Following the introduction of a Labor Department, the Climate-Related Financial Risk Advisory Committee meets for the first time. final rule This would enable retirement fiduciaries weigh “the economic effects of climate change and other ESG considerations” So long as they are related to the risk-and-return analysis. New rule reverses A prohibition that was previously enacted under the former President Donald Trump would be lifted. “safeguard the financial security of America’s families, businesses and workers from climate-related financial risk that may threaten the life savings and pensions of America’s workers and families.”
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Last week, the Senate and House Republican Members, together with some Democrats, overturned this final rule. President Joe Biden is expected To veto any legislative resolution.
ESG is an acronym for environmental, socio, and corporate governance. Critics claim the ESG investment philosophy mixes politics and social causes like reducing carbon emissions or achieving racial diversification in a way that distracts from profit. Previous rule Trump Administration banned managers of retirement funds from being able to work under his administration. “selecting investments based on non-pecuniary considerations” They were required to “base investment decisions on financial factors” alone.
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