The Federal Reserve said Tuesday it had formally joined an international effort of central banks and financial regulators aimed at mitigating climate change risks.
The Fed said it is now formally a member of the Network of Central Banks and Supervisors for Greening the Financial System. Joining concludes the Fed’s status as a lone hold out from an effort that counts the European Central Bank, the Bank of Japan , the Bank of Canada and many others as members.
The formal membership wasn’t unexpected. The Fed’s point man for financial regulation, Randal Quarles, noted recently that the U.S. central bank had sought to join after it had already been engaging with the group on an informal basis.
In a statement, Fed Chairman Jerome Powell said “as we develop our understanding of how best to assess the impact of climate change on the financial system, we look forward to continuing and deepening our discussions with our NGFS colleagues from around the world.”
The network, which launched three years ago, is a forum for central bankers and regulators to come together and discuss how their institutions can ensure their financial systems don’t worsen climate change risks, and how financial institutions might be able to lower those risks.
