The Financial Stability Oversight Council yesterday voted to rescind the charters of two committees formed to advise the council on climate-related financial risks.
The Climate-related Financial Risk Committee and Climate-related Financial Risk Advisory Committee were created during the Biden administration to study and recommend possible courses of action to address financial stability risks from climate change. However, the Trump administration has directed agencies to roll back climate-related programs, and some regulators have said the emphasis on climate has distracted from core banking risks.
FSOC members unanimously voted to eliminate the two committees. The move follows steps taken in recent months by individual banking agencies to eliminate their climate programs, such as the decision by the Federal Reserve in May to disband several internal groups created to study the issue.
