Biden Orders "Climate Risk Financial Strategy" for the US
President Joe Biden makes climate change a top priority and is very outspoken about such issues. He has issued an executive order to federal agencies to come up with an extensive strategy. The aim is to identify and manage financial risks to the government, the private sector, and the individuals, brought on by climate change. Biden also made a drastic measure and is determined to complete his goal to cut US greenhouse gas emissions by up to 52 percent by 2030. He also anticipates a clean energy standard that will ensure carbon-free electricity by the year 2035. In addition to this, he has a much broader aim of net-zero carbon emissions economy-wide by 2050.
This statement released by the White House, advocates taking definitive steps for issues regarding climate risk. It also aims towards stimulating job creation, protecting the life savings of workers, and helping the US lower GHG emissions. Extreme weather conditions caused by climate change can wreak havoc to supply chains and disrupt food, water, and emergency supplies. Snowstorms can shut down the entire power system, while the rising sea levels can cause floods that destroy homes and businesses. This order will identify public and private financing needed to mitigate climate change risk and safeguard the financial security of the US.
Gina McCarthy (top climate adviser to the White House) and Brian Deese (economic adviser) are the main personnel tasked with finding the necessary solutions to this executive order. They are supposed to develop a well-founded strategy within four months to identify and disclose to the government climate-related financial risks.
Treasury Secretary Janet Yellen and the ‘White House Office of Management and Budget’ are also involved in this mission. Meanwhile, the Labour Department will inspect the methods to protect citizens’ pensions from climate-related risk.
Yellen is expected to share climate-related financial risk data and provide an independent report within six months. The Securities and Exchange Commission (SEC) has started working towards possible regulations that would call for companies to reveal risks contributing to global warming. Federal Reserve Chairman Jerome Powell said that the agency has already started evaluating climate change-related risks borne by the banking system.
Climate change can be seen in many ways all over the world in rising sea levels and extreme weather conditions. These obstacles definitely present an increasing risk to infrastructure, investments, and businesses. The said risks are hidden, and the primary purpose of this executive order is to expose these risks.
According to the White House, the new executive order will ensure that the appropriate rules are in place to properly scrutinize and mitigate the risks and disclose them to the public, thus empowering the American citizens to make sound financial decisions. This executive order received a lot of praise from environmental groups. Biden is one of the few world leaders who recognize the humongous threats posed by climate change. This order lays the groundwork for eventual policy changes within the US government. Hence, it is likely to generate more backlash from Republican lawmakers skeptical of monitoring climate risk.
Well, what a genius and much-needed move by the US!
We can hope to have a much-needed climate change policy in India to be intact with education around the topic for the employment generation in this domain because of its great potential.
What are your thoughts?
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