Climate Shocks Likely to Trigger Financial Market Fallout, Global Financial Watchdog Warns
WASHINGTON — The Financial Stability Board (FSB), the international body tasked with monitoring stability for the global financial system, issued a warning with a powerful new framework for understanding how disasters fueled by climate change could increasingly impact the global financial system, in a report released today. In response, Anne Perrault, senior finance policy counsel with Public Citizen’s Climate Program, issued the following statement:
“Climate-related risks threaten deep and irreversible impacts to our financial system that would cause devastating harm to people and communities around the world. Regulators and policymakers must urgently address these risks.
“The FSB’s sobering assessment must be a wake-up call for lenders, insurers, and asset managers to meaningfully reduce financing and underwriting of greenhouse gas emissions driving the fires, floods, and hurricanes around the world. Global financial stability, and with it the lives and livelihoods of so many, are at stake. The incoming Administration is now on notice: it will be responsible for these profound impacts if it fails to act.”
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