WHAT TO WATCH FOR: In Confirmation Hearing, Powell Must Outline Concrete Plans To Tackle Climate-Related Financial Risk

As Outlined In Evergreen’s ‘Five to Mobilize’ Recommendations, The Fed Has The Tools It Needs To Help Avoid A Climate-Fueled Financial Crash: Will Powell Commit To Using Them?

On Tuesday at 10:00 am ET, the Senate Committee on Banking, Housing, and Urban Affairs will examine Jerome Powell’s nomination for a second term as Chair of the Board of Governors of the Federal Reserve System. Evergreen has laid out five concrete action steps leadership at The Fed can take to rein in financial risk caused by the climate crisis as part of its ‘Five to Mobilize’ project.

Today, Evergreen Action Campaigns Director Lena Moffitt released the following statement:

“When President Biden announced Jerome Powell’s nomination for a second term he promised urgent action from the Fed to address climate-related financial risk, but we have yet to hear Chair Powell articulate a clear timeline for action. In tomorrow’s hearing, that must change. Senators on the Banking Committee should push Powell for concrete action plans to mitigate the climate risk threatening to topple our entire financial system. Those plans must include steps to address the drivers of climate risk by reigning in Wall Street’s reckless fossil fuel investment. If Chair Powell isn’t prepared to outline these steps in tomorrow’s hearing, he’s not prepared to serve a second term. With every passing moment that the Fed fails to act, our economy is exposed to even greater risk— it’s time for Powell to face this crisis head-on.”

As part of it’s 5 to Mobilize series, Evergreen has released five concrete action steps for the next Fed Chair to use every tool at their disposal to address climate-related financial risk and protect financial stability. You can read the full set of recommendations here, and see an overview of the recommendations below: 

1. Creating Mandatory Climate-Risk Disclosure Rules

2. Conducting Regular Climate Stress Tests

3. Setting Higher “Capital Requirements” For Climate-Risky Assets

4. Limiting Investments That Are Not In Line With the Paris Agreement

5. Updating the Community Reinvestment Act Regulations To Drive Equitable Green Finance