The Federal Reserve to host its first-ever conference dedicated to climate change


By: - Climate DepotJuly 23, 2019 9:53 PM with 0 comments

Via Axios – https://www.axios.com/federal-reserve-san-francisco-climate-change-conference-5cbb0b87-ff0f-44aa-a786-623e995949b3.html

Scoop: Fed to host its first conference dedicated to climate change

On Nov. 8, the Federal Reserve Bank of San Francisco — seated in a place that has seen its share of catastrophes linked to global warming — will host what is believed to be the central bank’s first research conference specifically on climate change.

Why it matters: Climate change poses systemic risks to the soundness of the U.S. banking system, and the Fed is signaling its appetite to learn more. The conference — together with an invitation to submit related research papers — comes at a time when the Fed is increasingly facing pressure to follow other central banks in considering the threats that global warming poses to the economy.

Details: The Federal Reserve Bank of San Francisco published a widely circulated paper in March on climate change-related economic risks. According to a memo seen by Axios, the Fed is seeking submissions for research on a number of related topics, including the “implications for monetary and prudential policy of climate change and its consequences.”

Fed's call for research on subjects related to climate change

The bottom line: While the Fed is one of the only major central banks that hasn’t joined a global initiative to assess climate risk management in the financial sector, this conference is a clear indication that it’s beginning to think more comprehensively about the risks associated with a warming climate and how it could impact the way it does its job.

  • Still, Fed chair Jerome Powell told lawmakers earlier this month that climate change was a “longer-run issue” and that he didn’t know if “incorporating it into the day-to-day supervision of financial institutions would add much value.”

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