President Biden on Thursday signed an executive order directing several federal departments and agencies to analyze the risks climate change poses to the U.S. financial system and federal government, the White House announced.
“We know that the climate crisis, whether through rising seas or extreme weather, already presents increasing risks to infrastructure, investments, and businesses. Yet, these risks are often hidden,” the White House said Thursday.
Gauging and managing the financial risks and economic impacts of climate change has been a pillar of the Biden administration’s environmental policy. Under Treasury Secretary Janet Yellen, the department has begun developing a “whole-of-economy” strategy meant to clear a financially stable and economically productive path to carbon neutrality.
Treasury Sec. nominee Janet Yellen: “I will look to appoint someone at a very senior level to lead our efforts,” Yellen told members of the Senate Finance Committee. She said doing so would create a hub within Treasury that would focus on financial system-related risk posed by climate change, and tax policy incentives to affect change.
“We need to seriously look at assessing the risk to the financial system from climate change,” Yellen said.