White House Sets Out Broad Goals for Limiting Climate Damage

(Bloomberg) -- The Biden administration on Friday released a report laying out its broad ambitions for how the federal government will seek to shield the U.S. economy and financial system from threats posed by climate change.

“This road map is a first step in a whole-of-government effort to meet the president’s goals of mitigating the economic risks of climate change while seizing the economic opportunities that it presents,” Gina McCarthy, the national climate adviser, said Thursday evening during a call with reporters.

The report laid out five main areas:

• Promoting the resilience of the financial system
• Protecting pensions and savings from climate-related financial risk
• Making federal government procurement decisions with climate in mind
• Including climate-related risk in federal lending and underwriting
• Bolstering infrastructure and communities by encouraging more resilient land use and construction practices.

The report is an early stage response to an executive order issued by President Joe Biden in May calling on federal agencies to identify and address climate-related financial risks to the government and to the U.S. economy. Its release comes a little more than two weeks before the United Nations climate change summit begins in Scotland. 

A more detailed step is expected soon from the Financial Stability Oversight Council, a body of federal financial regulators, on how to begin addressing climate-related threats to financial firms. The Securities and Exchange Commission is also expected to propose new rules by year’s end requiring corporations to publicly disclose the risks they face from climate change. 

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