White House Set to Unveil Climate Finance Plan on Thursday

Source: By Saleha Mohsin, Bloomberg • Posted: Wednesday, May 19, 2021

President Joe Biden on Thursday is expected to order his administration to create a strategy to quantify risks for both public and private financial assets posed by climate change, according to people familiar with the matter.

The executive order will direct Treasury Secretary Janet Yellen, as head of the Financial Stability Oversight Council, to share climate-related financial risk data and issue a report, the people said, speaking on the condition of anonymity.

Members of FSOC include the heads of the Federal Reserve and the Securities and Exchange Commission.

A Treasury spokeswoman declined to comment. A White House spokesperson didn’t immediately respond to requests for comment.

The order, titled Climate-Related Finance Risk, is little changed from a draft that circulated last month and reported by Bloomberg News, the people said.

That draft described a government-wide approach to be created by National Economic Council director Brian Deese and National Climate Advisor Gina McCarthy in coordination with Yellen and the Office of Management and Budget.

Under Biden’s approach, the OMB director, in consultation with other agencies, would identify the primary drivers of federal climate-risk exposure and develop ways to quantify climate risk for the president’s long-term budget projections. OMB and the Council of Economic Advisers would also develop and publish an assessment of the government’s climate risk exposure.

— With assistance by Ari Natter, and Jennifer A Dlouhy