In brief
In a surprising move, the Federal Reserve has announced its departure from a global network aimed at addressing climate risk, just as Donald Trump prepares to take office again. Established initially in December 2020, the Network of Central Banks and Supervisors for Greening the Financial System (NGFS) was intended to facilitate communication among financial regulators on climate-related issues and their implications for the economy. The decision to withdraw, made by a majority of the Fed's Board of Governors, reflects growing concerns about the expanding mandate of the network and its potential impact on U.S. banking regulations. Critics within the Republican party have long cautioned against intertwining climate considerations with financial policy, pointing to possible detriments for key industries.
