Biden unveils plan to address climate change risks to economy

U.S. President Joe Biden delivers remarks on the September jobs numbers within the South Court docket Auditorium within the Eisenhower Government Workplace Constructing on October 08, 2021 in Washington, DC.

Chip Somodevilla | Getty Photos

The Biden administration on Friday unveiled a government-wide plan to handle the systemic risk local weather change poses to all sectors of the financial system.

The roadmap is a part of the Biden administration’s longer-term agenda to slash domestic greenhouse gas emissions nearly in half by 2030 and transition to a net-zero financial system by mid-century whereas mitigating the affect of local weather change on the financial system.

Worsening climate-related disasters like heatwaves, drought, floods and wildfires threaten to upend the soundness of the worldwide monetary system.

This yr, excessive climate occasions affected one in three Americans, in line with federal catastrophe declarations, and interrupted provide chains throughout the nation. Up to now 5 years, excessive climate has cost Americans greater than $600 billion in damages, in line with the Nationwide Oceanic and Atmospheric Administration.

The administration’s plan accounts for the way local weather change will have an effect on the businesses persons are invested in, and goals to guard the financial savings and pensions of American households with retirement plans. Local weather-related dangers in retirement plans have already value American retirees billions in misplaced pension {dollars}, in line with a reality sheet launched by the White Home.

The Division of Labor “is main efforts to take away regulatory obstacles and be certain that worker profit plan fiduciaries can incorporate materials climate-related dangers into their funding selections,” says the report. “These efforts will higher defend the life financial savings of America’s employees and their households from the impacts of local weather change, and will additionally mobilize capital in the direction of sustainable investments.”

The roadmap additionally identifies how companies can strengthen the resilience of infrastructure in response to worsening local weather disasters. It exhibits how companies can leverage federal procurement to handle climate-related monetary threat, in addition to incorporate climate-related threat into federal lending and budgeting.

This month, greater than 20 federal companies published climate adaptation plans revealing the most important threats local weather change poses to their operations and amenities and the way they plan to deal with them.

“Local weather change poses a threat to our financial system and to the lives and livelihoods of Individuals, and we should act now,” Nationwide Local weather Advisor Gina McCarthy instructed reporters throughout a press name on Thursday. “This roadmap is not nearly defending our monetary system — it is about defending individuals, their paychecks and their prosperity.”

“We’re clear-eyed to how local weather change poses a systemic threat to our financial system,” Bharat Ramamurti, deputy director of the Nationwide Financial Council, mentioned on the press name. “We’re taking a precautionary strategy that displays the truth that inaction just isn’t an possibility.”

The report is named “A Roadmap to Construct a Local weather-Resilient Financial system.”

President Biden has additionally known as on Treasury Secretary Janet Yellen, the top of the Financial Stability Oversight Council, and monetary regulators to supply a report on local weather monetary threat information. That report is not out but.

The president and first girl are set to travel to Europe in two weeks, with the worldwide local weather disaster on the forefront of Biden’s agenda. Biden may also journey to Glasgow, Scotland, to attend the United Nations Local weather Change Convention of the Events, or COP26, in the beginning of November.

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