As President Biden Nears A Final Decision On His Nominee For The Next Fed Chair, Evergreen Outlines Steps Fed Must Take To Mitigate The Risk Of A Climate-Fueled Recession
Today, as the Federal Reserve kicks off its annual Economic Policy Symposium, Evergreen Collaborative released 5 Steps the Next Federal Reserve Chair Must Take to Address Climate-Related Financial Risk, a new policy report that outlines steps that the next Fed Chair must take to address climate-related financial risk and fulfill the Fed’s mandate to protect the American economy.
In the coming weeks, President Biden will decide whom to nominate as Fed Chair, amid mounting pressure to select a Chair that will take decisive action to protect our economy from a climate-fueled crash. Evergreen’s new report lays out why action by the Fed is essential, and 5 critical steps it must take to protect our financial stability from climate-related risks:
Creating mandatory climate-risk disclosure rules
Conducting regular climate stress tests to build resilience to climate shocks
Setting “capital requirements” to ensure banks internalize some climate-related risks
Limiting investments that are not in line with the Paris agreement
Updating the Community Reinvestment Act regulations to drive equitable green finance
