Members of the Senate Banking Committee commended the Commodity Futures Trading Commission (CFTC) for holding a public meeting on climate-related financial risks.
“Climate change impacts are likely to exacerbate market volatility, erode investor confidence, and increase the risk of financial crashes,” the senators wrote in their letter to CFTC Commissioner Rostin Behnam. “We strongly support your decision to assess climate-related risks to our financial markets and the impact on the stability of the global financial system. We encourage you to reach out to other financial regulatory agencies to urge them to follow your lead. We also encourage you to engage with the group of 36 international central banks and bank supervisors working together to develop analytic tools to assess climate-related financial risks.”
The letter was signed by U.S. Sens. Brian Schatz (D-HI), Sherrod Brown (D-OH), and members of the Senate Banking Committee.
“Climate change is increasing the frequency and severity of episodic severe weather events like droughts, floods, and wildfires; it is also changing long-term climate patterns in ways that will lower productivity, devalue and destroy fixed assets, stress agricultural yields, and ultimately affect every sector of our economy. The markets and market participants that the CFTC regulates will not be immune to these risks. Climate change impacts are likely to exacerbate market volatility, erode investor confidence, and increase the risk of financial crashes,” the senators wrote.
The post Senators applaud CFTC for addressing climate-related financial risks appeared first on Financial Regulation News.