Yellen Remarks on Climate-Related Financial Risk
On March 7, Treasury Secretary Janet Yellen offered remarks to the Financial Services Oversight Committee’s Climate-Related Financial Risk Advisory Committee during its first meeting of 2023. Secretary Yellen noted that, in October 2021, the FSOC published its Report on Climate-related Financial Risk and identified climate change as an emerging and increasing threat to U.S. financial stability. The report further posited that that climate change was likely to become a source of shocks to the financial system in coming years.
A CNBC article honed in on Secretary Yellen’s statements that “climate change could cause asset-value losses throughout the country’s financial system” and that “[a] delayed and disorderly transition to a net-zero economy can lead to shocks to the financial system.”