Regulators Move to Disband Climate Risk Committees Amid Policy Shifts

U.S. financial regulators have voted to dismantle committees focused on financial risks from climate change, reversing efforts by the Biden administration. The decision aligns with a 'back to basics' regulatory approach by Treasury Secretary Scott Bessent, aiming to ease requirements and boost economic growth.

In a significant policy reversal, U.S. financial regulators voted on Wednesday to dismantle two committees focused on monitoring financial risks associated with climate change. This move ends a multi-year Biden administration effort to address climate threats within financial regulations.

The Financial Stability Oversight Council, chaired by Treasury Secretary Scott Bessent, rescinded the charters of the Climate-Related Financial Risk Committee and the Climate-Related Financial Risk Advisory Committee. Treasury Secretary Bessent stated that this action is part of his "back to basics" approach to financial regulation, focusing on easing capital requirements to stimulate economic growth.

The decision represents a broader rollback of Biden's climate policies, addressing federal support for clean energy and deregulating fossil fuel production. Critics argue that this rollback compromises protections against the financial impacts of climate disasters, such as those affecting housing and insurance sectors.

(With inputs from agencies.)