Requires FSOC to investigate local weather monetary threat, problem report, mirroring key provisions of Feinstein invoice
Could 23, 2021 – Washington – Senator Dianne Feinstein (D-Calif.) final week launched the next assertion after President Biden signed an government order directing Treasury Secretary Janet Yellen and the Monetary Stability Oversight Council to problem a report on climate-related monetary threat:
“I assist President Biden’s government order directing his administration to check the monetary dangers of local weather change. Californians, who’re experiencing extra frequent and extreme wildfires and droughts, already know we are able to’t proceed to disregard the issue – the price of inaction is just too excessive.
“Lowering our carbon emissions is the most effective instrument to struggle local weather change. However local weather change is already making a pressure on our monetary system. As an example, wildfires are driving up property insurance coverage value, making it much less accessible. Farmers are being pressured to cope with extra extreme droughts. And sea-level rise is undermining houses and important infrastructure.
“This government order is a useful step and contains a number of provisions within the Addressing Local weather Monetary Danger Act that I launched with Consultant Sean Casten in March. These embrace a complete evaluation by monetary regulators of local weather monetary threat, route to the Federal Insurance coverage Workplace to evaluate the potential for main disruptions of personal insurance coverage protection and a overview to make sure current guidelines and requirements assist mitigate local weather threat. The president additionally referred to as for improved data sharing amongst federal monetary regulators on this matter.
“Local weather change is actual and occurring now, so we are able to’t afford to waste any extra time. Understanding the dangers local weather change poses will assist us higher perceive and confront the issue.”
- Senator Feinstein is creator of the Addressing Climate Financial Risk Act, a invoice to enhance the power of federal regulators to grasp and mitigate dangers from local weather change throughout the monetary system.
- In January, Senator Feinstein called on Treasury Secretary Janet Yellen to implement key provisions of the Addressing Local weather Monetary Danger Act together with making a everlasting Advisory Committee on Local weather Monetary Danger made up of consultants on local weather monetary threat, local weather economics and local weather change.
- Final September, Senator Feinstein called on the Treasury Department’s Federal Insurance Office to problem a report on the impression of elevated wildfire threat on account of local weather change on non-public insurance coverage markets.
- Final June, Senators Feinstein and Marco Rubio (R-Fla.) called on the Commodity Futures Trading Commission to incorporate particular suggestions for addressing the monetary threat of local weather change within the upcoming report by its Local weather-Associated Market Danger Subcommittee, the primary federal monetary regulator advisory committee targeted on the chance local weather change poses to the monetary system.
Supply: Senator Dianne Feinstein