U.S. Treasury's Surprising Exit from Climate Risk Initiative

The U.S. Treasury Department has announced its withdrawal from the Network of Central Banks and Supervisors for Greening the Financial System (NGFS). This decision marks a significant shift in the Department's engagement with global efforts to manage climate risks within the financial system.

The U.S. Treasury Department announced on Thursday its decision to withdraw from a prominent global coalition dedicated to tackling climate risks in the finance sector.

In a recent statement, the Treasury revealed that its Federal Insurance Office (FIO) has officially exited the Network of Central Banks and Supervisors for Greening the Financial System (NGFS).

This move signals a major change in the U.S. approach to international collaboration on climate change mitigation efforts related to the financial industry.

(With inputs from agencies.)