The Biden administration is taking steps to address the economic risks from climate change, issuing a 40 - page report for federal programs designed to protect the financial, insurance and housing markets and the savings of American families on Friday.
The report lays out steps that could potentially alter the mortgage process, stock market disclosures, retirement plans, federal procurement and government budgeting.
It is a follow-up to an executive order from President Joe Biden in May that essentially calls on the administration to analyze how the world economy could be affected by extreme heat, flooding, storms, wildfires and the broader adjustments needed to address climate change.
A February storm in Texas led to severe power outages, 210 deaths and widespread property damage. Wildfires raged in western states. The hot dome in Portland, Oregon caused record temperatures to Seattle and the Pacific Northwest. In August Hurricane Ida struck New Jersey and caused deadly flooding in Louisiana.
The actions recommended by the Biden administration reflect a significant shift in the broader discussion about climate change, suggesting that the nation must prepare for the costs that families, investors and governments will bear.
The report is also an effort to demonstrate to the world how serious the U.S. government is about addressing climate change ahead of the United Nations Climate Change Conference, which will be held from 30th to 12 Nov in Glasgow, Scotland.
Among the steps outlined is the government s Financial Stability Oversight Council developing the tools to identify and lessen climate-related risks to the economy. The Treasury Department plans to address insurance sector risks and availability of coverage. The Securities and Exchange Commission is reviewing mandatory disclosure rules about the opportunities and risks created by climate change.
On Wednesday, the Labor Department proposed a rule for investment managers to factor environmental decisions in the choices made for pensions and retirement savings. The Office of Management and Budget announced that the government will begin the process of asking federal agencies to consider greenhouse gases emissions from the companies providing supplies. Biden s budget proposal for fiscal 2023 will include an assessment of climate risks.
Federal agencies involved in lending and mortgages for homes are looking for the impact on the housing market, with the Department of Housing and Urban Development and its partners developing disclosures for homebuyers and flood and climate-related risks. The Department of Veterans Affairs will also look at climate risks for its home lending program.
The Federal Emergency Management Agency is revising the standards for its national flood insurance program, potentially updating guidelines that go back to 1976.
McCarthy continues: "We now recognize that climate change is a systemic risk" I also need to look at how the federal government does its job and how we look at the finance system and its stability.