Climate advocates turn sights on Wall Street

Asia's Tech News Daily

The fight over climate change is increasingly focusing on Wall Street, with a key federal watchdog this week directing regulators like the U.S. Securities and Exchange Commission (SEC) to do what they can to lower emissions.

Climate advocates turn sights on Wall Street
© Getty Images Climate advocates turn sights on Wall Street

Civil society advocates told The Hill that in addition to sending a signal to Wall Street, the move by a top interagency oversight group to label climate change an existential threat to the financial system aids Democrats’ efforts to use financial regulation as a tool in the climate fight.

The report, issued by the Financial Stability Oversight Council (FSOC), steered clear of specific prescriptions to financial regulators, such as calling for mandatory stress tests, capital requirements or caps on fossil fuel investments, as The Hill reported Thursday.

But by finding that a “disorderly transition” to a low carbon economy was a key threat to the economy, it has opened the potential floodgates for financial regulators to act against emissions in order to stabilize the market, said Alex Martin of Americans for Financial Reform.

“Once you make that call, it’s obvious [that regulators] need to intervene, and the end result of that process will be lower emissions,” Martin said.

“And that will happen because emissions threaten the financial system,” he added.

Advocates said they were disappointed with the report’s lack of specific guidelines but agreed that beyond all the qualified clauses lies a clear warning to America’s financial system.

“The phrasing of the recommendations is extremely weak, with most couched in several layers of caveats,” said Yevgeny Shrago, a policy counsel with Public Citizen.

However, Shrago said, “If you [take] what they say seriously about climate being a risk, then there’s no question that regulators need to take a bunch of these actions.” He added that failing to do so “would be a dereliction of their duty.”

The FSOC report is also one of the first major reports from a financial regulator to acknowledge that “communities of color are facing risk from climate first and worse, and they hold the bill most acutely if we go into a climate recession,” Becca Ellison of Evergreen Action said.

The report included one unambiguous policy prescription: that regulators work to create a rigorous framework for banks and publicly traded companies to disclose their risks from both climate change and the energy transition.

Martin and the other advocates said that while more needs to be done, the labeling of climate change as an existential threat is a key step to forcing regulators to confront the magnitude of the economy’s exposure to climate risk.

Once they “look under the hood” at banks and public companies, the SEC and others will likely “see a lot of climate-related risk that is unexpected and has been easy to ignore,” Martin said.

This puts financial regulators in a key position to confront fossil fuel emissions that congressional Democrats have so far been unable to counter.

Earlier this week, progressive Democrats were angered by reports that the Clean Energy Payment Program (CEPP) – which would pay or fine power utilities based on their ability to meet rising clean energy standards – has been struck from President Biden’s Build Back Better legislation.

The CEPP was just one of many congressional proposals to cut emissions, Sen. Ron Wyden (D-Ore.) told reporters on Monday, with “the overwhelming majority of emissions reductions com[ing] from the energy tax overhaul” in the bill, and movement toward a carbon tax.

Other legislation would mandate some of the actions left out of the FSOC recommendations. A bill by Sen. Brian Schatz (D-Hawaii) and Rep. Sean Casten (D-Ill.) would direct the Federal Reserve to organize climate stress tests to see how vulnerable banks are to climate change.

And in the House, there is the Fossil Free Finance Act from Reps. Ayanna Pressley (D-Mass.), Rashida Tlaib (D-Mich.) and Mondaire Jones (D-N.Y.), which would direct the Federal Reserve to call for all banks holding more than $50 billion to “align their financing of greenhouse gas emissions with science-based emissions targets.”

But regulators don’t need to wait for Congress, advocates say, arguing regulators have all the power they need right now. And by connecting climate change to financial risk – precisely the type that the Dodd-Frank Act set up the FSOC to head off – advocates say the report released this week has given its members the cover to act.

The risk of emissions to the financial system “is going to increase if we don’t get power sector emissions under control, which adds to the urgency of using financial regulation to protect the system,” Martin said.

The potential loss of the CEPP program makes such action particularly urgent, Martin said. “Without that program, there will be far more emissions from the power sector, worse climate change, greater economic impacts from physical damage – and also a more costly, disorderly transition.”

Internet Explorer Channel Network
Asia's Tech News Daily
News Related


Norway's Foreign Ministry condemns Aung San Suu Kyi verdict

Foreign Minister Anniken Huitfeldt (AP) condemned the verdicts against Myanmar’s former leader Aung San Suu Kyi and the country’s president Win Myint. “I am very concerned about how the military ... Read more » CEO Vishal Garg accuses staff of stealing after laying off 900 employees on Zoom call

The chief executive of digital mortgage lending company reportedly accused hundreds of staffers of stealing from the company after laying off 900 people in a Zoom call. © YouTube/ ... Read more »

Joe Brady got fired a day late because Panthers couldn't reach him

That’s awkward. Panthers coach Matt Rhule said in a press conference Monday he initially planned to fire offensive coordinator Joe Brady on Saturday, but he “wasn’t available” to meet. Rhule ... Read more »

Multi-millionaire Prince Harry branded ‘Mr Nonsense' after telling anyone unhappy at work to quit

PRINCE Harry was mocked for talking nonsense last night after telling anyone unhappy at work to quit. The duke, who gave up royal duties to live in an £11million mansion, ... Read more »

Evil child murderers like Arthur Labinjo-Hughes' father and step-mum will die in prison under new laws, PM vows

BORIS Johnson yesterday vowed to bring in a new “Arthur’s Law” so evil child killers will die behind bars. The Prime Minister told The Sun: “Anyone who plans then carries ... Read more »

Banged-up Bengals dealing with Burrow's finger injury

CINCINNATI (AP) — The Cincinnati Bengals came into Sunday’s home game riding a wave of momentum and confidence after a pair of dominating wins. By the end of the afternoon, ... Read more »

Save 20% on our favorite mattress and more at Tuft & Needle now

— Recommendations are independently chosen by Reviewed’s editors. Purchases you make through our links may earn us a commission. Looking for a relaxing gift idea for the holidays? Tuft & ... Read more »

NYC to impose vaccine mandate on private employers

From big Wall Street banks to corner grocery stores, all private employers in New York City will have to require their workers to get vaccinated against COVID-19. The Greater NY ... Read more »

Power shifts; Alexander now South Carolina Senate president

© Provided by Associated Press A single rose sits in the late Senate Finance Committee Chairman Hugh Leatherman’s seat, which is draped in black on Monday, Dec. 6, 2021, in ... Read more »

Dismantling anti-Black racism in our schools: Accountability measures are key

Education is built on the belief that people can be more. In the words of the 20th-century American sociologist and writer W.E.B. DuBois, an important anti-racist leader and figure in ... Read more »

Jussie Smollett testifies at his trial: 'There was no hoax'

CHICAGO (AP) — Former “Empire” actor Jussie Smollett denied Monday that he staged an anti-gay, racist attack on himself in downtown Chicago, testifying at his trial that “there was no ... Read more »

Manny Diaz 'disappointed,' 'hurt' by Miami's decision to oust him as football coach

The University of Miami has fired head football coach Manny Diaz after three seasons, the school announced on Monday. The Hurricanes wasted no time replacing Diaz, with Oregon’s Mario Cristobal leaving ... Read more »

Jussie Smollett testifies he gave check for diet and exercise plan, not for phony hate crime beating

1 / 2Jussie Smollett testifies he gave check for diet and exercise plan, not for phony hate crime beating CHICAGO — Former “Empire” actor Jussie Smollett testified in his own ... Read more »

Suspect arrested, charged in death of two missing Virginia women

Tonita Smith and Allene Redmon were found dead last month within a short distance of each other A D.C. man was arrested in the death of two women whose bodies ... Read more »

Apple's 'hands-off' approach with Roblox draws focus in DOJ antitrust probe - The Information

FILE PHOTO: FILE PHOTO: The Apple Inc logo is shown outside the company’s 2016 Worldwide Developers Conference in San Francisco (Reuters) – U.S. prosecutors are looking for instances in which ... Read more »

Where to find Luncheon Toad Skin in Final Fantasy XIV

© Provided by GamePur You’ll be on the hunt for several resources in Final Fantasy XIV, especially if you’re trying to complete specific crafting recipes or looking to offer them ... Read more »

How to fix the white screen error in Fortnite

© Provided by Dot Esports Fortnite’s third chapter is out. Players are already flooding the servers after an epic closing event that concluded the previous storyline while also shedding light ... Read more »

All Drifblim weaknesses and best Pokémon counters in Pokémon Brilliant Diamond and Shining Pearl

© Provided by GamePur While some people may laugh at the fact that Drifblim is Pokémon that is literally a balloon, this spooky entity could easily knock down your party ... Read more »

All Seven Outpost and Vault Locations in Fortnite Chapter 3 Season 1

© Provided by GamePur The Seven Vaults are important sites that players will need to learn in Chapter 3 Season 1 of Fortnite. Now that the seven are such a ... Read more »

How to get the Spider-Man mythic weapon, Web-Shooters, in Fortnite

© Provided by Dot Esports Epic Games has found a way to make each Fortnite chapter and season as memorable as possible. Fans worked tirelessly to save the Fortnite universe during the second chapter ... Read more »

Steel joins T1 as VALORANT team's in-game leader

© Provided by Dot Esports Joshua “steel” Nissan has found a new home on T1’s VALORANT roster, the organization announced today.  Steel is a CS:GO veteran turned VALORANT pro who ... Read more »

Woman pulls bead from her nose 20 years after she stuck it there as a toddler

© hannah.lham via TikTok Hannah Hamilton, 23, demonstrates the bead she removed from her nose after 20 years – hannah.lham via TikTok A young woman in Georgia has found unexpected ... Read more »

Will Boris Johnson implement Plan B? Sajid warns Omicron now spreading in the community

Officials have detected 336 new Omicron cases since late November, and experts believe this total could soon become thousands. The new virus has come at an unfortunate time, as most ... Read more »

Mother sparks mixed responses after revealing fake mouse dropping strategy for getting teenager to clean

© Provided by The Independent A mother has sparked a debate after revealing the lengths she went to to encourage her teenage daughter to clean her room. In September, Tiffini ... Read more »

If cats were people, they'd probably be psychopaths, scientists say

Some say “cats are people, too” — but if that’s the case, you’d better watch your back. A study has found that the average cantankerous kitty could be harboring actual ... Read more »

Toyota to build $1.3 billion battery plant in North Carolina

The move comes at a time when Toyota and other carmakers need to assert their e-car prowess in light of Tesla’s newfound dominance in the vehicle market. AFP via Getty ... Read more »

Nobel medals distributed in Washington

Winners of the 2021 Nobel Prizes in chemistry, physics and medicine received their awards in scaled-down ceremony in Washington, adapted for pandemic times. (Dec. 6) Read more »

Sen. Bob Dole's final column: 'Too many of us have sacrificed too much'

This is Sen. Dole’s final op-ed. He began drafting it, with pen and paper, in October and finished it on Nov. 23. He died on Sunday. Dwight Eisenhower said that ... Read more »

Neighborhood Wars: Suv Plows Into Teen And Drives Off

Next door neighbors go at it over trash cans blocking a parking spot and the street ends up covered with their contents. Another neighbor unleashes an epic rant over the ... Read more »

Dominic Cummings: ‘very unwise for No 10 to lie' about Christmas parties

Ex-chief aide to Boris Johnson also alleges some journalists are trying to play down coverage of 2020 events Dominic Cummings has said it would be “very unwise for No 10 ... Read more »

Cape Coral man held victim, sexually abused them for hours after meeting on dating app, police say

A Cape Coral man is accused of imprisoning an adult and sexually assaulting them for hours after meeting through a dating app, reports indicate. Cape Coral police detectives said Douglas ... Read more »

Labor rules out post-election climate deals, dismissing Coalition scare campaign

Photograph: Lukas Coch/AAP Chris Bowen says party’s stance is not negotiable as Morrison claims a vote for Labor is a vote for ‘Greens targets’ Download the free Guardian app; get ... Read more »

Joni Mitchell Fast Facts

Here is a look at the life of singer, songwriter and painter Joni Mitchell. © Frederick M. Brown/Getty Images LOS ANGELES, CA – OCTOBER 28: Recording artist Joni Mitchell performs ... Read more »

‘Luxury Christmas for Less' — everything you need to know about the new consumer series

With Christmas fast approaching it’s time to start making lists and checking them twice. But if you’re not quite there yet, don’t worry, as Channel 4’s Luxury Christmas for Less ... Read more »

Jeff Hardy sent home from WWE tour after ‘rough night'

Jeff Hardy was reportedly sent home from WWE’s tour after having what is being called a “rough night”. AFP via Getty Images Jeff Hardy was sent home from WWE’s tour ... Read more »

Everton vs Arsenal LIVE: Live stream, score, TV – Damarai Gray THUNDERBOLT sees Toffees close in on thrilling victory

EVERTON take on Arsenal in the Premier League TONIGHT with Rafa Benitez feeling more pressure than ever as Toffees boss. The Toffees have had it tough in recent weeks and ... Read more »

Animal lover, 38, designs a miniature complex for animals

© Provided by Daily Mail MailOnline logo An animal lover has built an amazing miniature complex for wildlife which has an infinity pool and a Christmas cabin for squirrels. Paul ... Read more »

Gary Neville says Man United players gave Ralf Rangnick one thing he wanted most in first game

Gary Neville said that Manchester United interim manager Ralf Rangnick got the “order” he would have wanted in the 1-0 victory over Crystal Palace on Sunday afternoon. Rangnick’s first game ... Read more »

Colorado State football hires Jay Norvell away from Nevada as next head coach

The Colorado State football team has its next head coach, straight from a Mountain West competitor. The Rams have hired Nevada’s Jay Norvell as their next head coach, replacing Steve ... Read more »

HCL Tech to hire 12,000 in U.S. over 5 years

© Provided by Zee Business Indian software services exporter HCL Technologies said on Monday it will create 12,000 new jobs in the United States through the next five years as ... Read more »
On you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic