The US Federal Reserve has joined a consortium of central bankers supporting the Paris climate goals as it becomes more outspoken on the risk climate change poses to the global economy.
The move came as the Network for Greening the Financial System (NGFS), which includes 75 central banks, published a survey of its members’ plans for grappling with climate change. The Fed is one of eight new members to join the group this month and follows a pledge by US President-elect Joe Biden to rejoin the Paris climate accord, which is a requirement.
“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,” Jay Powell, the Fed chair, said.