Federal Reserve Exits Green Finance Group

Sierra Club calls on Fed to Assert Independence from Incoming Administration

January 17, 2025

WASHINGTON, DC - The Federal Reserve announced today it would exit the Central Banks and Supervisors Network for Greening the Financial System(NGFS) - a network of more than 100 central banks and financial supervisors that aims to accelerate the scaling up of green financeand develop recommendations for central banks' role for climate change.

In response to the news, Ben Cushing, campaign director for the Sierra Club's Fossil-Free Finance campaign, issued the following statement:

"Every US financial regulator, including the Federal Reserve, has stated clearly that climate change poses a growing threat to our economy and financial stability. That was true three years ago when the Financial Stability Oversight Council stated it, and it's even more evident today - in part because the Federal Reserve under Chair Powell has failed to act accordingly. The incoming administration's efforts to deny and exacerbate the climate crisis should be a reason for the Fed to assert its independence by addressing climate risks, but instead it's doing the opposite. If the Fed continues to bow to political pressure and avoid acting on climate, it will further isolate the US on the global stage and put the economy in greater jeopardy."

Background

Under the leadership of Chair Jerome Powell, the Federal Reserve has continually resisted efforts to addressclimate financial risks and remains out of touchwhen it comes to addressing growing climate risks to people, financial institutions, and the economy. Despite experts callingon central banks to do more after the hottest year on record, the Fed and Powell continue to be laggards.

Climate change, a significant driver of inflationand economic instability, should be front and center, especially considering the financial implications of the climate-driven insurance crisisto Americans' livelihoodsand mortgage lenders. The financial burdens for working and middle-class Americans are set to escalateunder President-elect Trump's climate-denying proposals.

About the Sierra Club

The Sierra Club is America's largest and most influential grassroots environmental organization, with millions of members and supporters. In addition to protecting every person's right to get outdoors and access the healing power of nature, the Sierra Club works to promote clean energy, safeguard the health of our communities, protect wildlife, and preserve our remaining wild places through grassroots activism, public education, lobbying, and legal action. For more information, visit www.sierraclub.org.

Fossil Free Finance