By Alexis McDonell
The U.S. government made another move to distance itself from global action to combat rising temperatures — this time by pulling out of an international group dedicated to managing financial risks tied to the changing climate.
What’s happening?
The U.S. Treasury Department announced that it is withdrawing from the Network for Greening the Financial System, a global coalition aimed at mobilizing green finance and developing recommendations for pollution-risk management in the financial sector, reported Reuters .
The decision aligns with President Donald Trump’s executive orders regarding environmental agreements and energy policy, which prioritize dirty energy sources , including oil and gas development, over anti-pollution initiatives.
In a statement , the Treasury said NGFS’s initiatives were “inconsistent” with the administration’s priorities and that its frameworks on monetary policy “go beyond FIO’s core duties.” The Treasury’s departure follows similar exits by the Federal Reserve Board and the Federal Deposit Insurance Corporation, both of which withdrew around the time of Trump’s inauguration, according to Banking Dive .
…
Trump signed multiple executive orders on his first day back in office, including directives to withdraw from the Paris Agreement , declare a national energy emergency, halt wind power development, and make plans to suspend funding from the Inflation Reduction Act and the Bipartisan Infrastructure Law.
Policy experts and advocates have expressed alarm. “It’s deeply concerning … [the country] is now retreating from an international body specifically dedicated to addressing climate-related financial risks,” Carly Fabian, a senior insurance policy advocate with Public Citizen’s Climate Program, told ESG Dive .
