Fed Joins International Network Fighting Climate Change

The Federal Reserve said it had formally joined an international network of central banks in an initiative aimed at better understanding the risks posed to economies by climate change.

The Fed’s Board of Governors voted 5-0 to accept membership in the Network for Greening the Financial System, which includes 75 central banks, the Fed said in a statement Tuesday.

“As we develop our understanding of how best to assess the impact of climate change on the financial system, we look forward to continuing and deepening our discussions with our NGFS colleagues from around the world,” Fed Chair Jerome Powell said in the statement.

The NGFS requires its members be signed up to the Paris Climate Accord. President Donald Trump announced in 2017 that he was withdrawing the U.S. from the pact, but President-elect Joe Biden has pledged to rejoin as he makes fighting climate change a key focus for his administration when he takes office in January.

Biden’s Electoral College win over Trump was finalized after electors in each state voted Monday.

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