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Better Markets: federal Reserve’s Climate Scenario Analysis Is a welcome First Step In addressing Climate Risks But Must Have Supervisory Consequences

Better Markets, September 29, 2022, Federal Reserve’s Climate Scenario Analysis Is A Welcome First Step In Addressing Climate Risks But Must Have Supervisory Consequences

Phillip Basil, Director of Banking Policy at Better Markets, issued the following statement on the Federal Reserve’s announcement of a “pilot” climate scenario analysis exercise for 2023:

“The Federal Reserve’s official announcement of its plan to conduct climate scenario analysis for the nation’s six largest, most complex, most dangerous financial institutions is a welcome first step in addressing the urgent need to mitigate climate related financial risks. To date the Fed has woefully lagged behind many of its European counterparts in conducting climate scenario analysis, which is key to identifying, sizing, and assessing the risks that climate change poses to the financial system.

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