Climate Politics
Fed Refuses to Back Basel Climate Plan, Leaving Talks in Limbo
- Decision follows tensions between US, Europe over regulations
- Trump’s return heralds further pressure on global green agenda
Joggers pass the Marriner S. Eccles Federal Reserve building in Washington, DC.
Photographer: Erin Scott/BloombergThis article is for subscribers only.
US regulators led by the Federal Reserve have refused to endorse a plan that would have seen the Basel Committee on Banking Supervision push lenders to disclose their climate risk, according to people familiar with the matter.
While it’s not impossible the US could reverse course, the Basel Committee has already watered down the proposal significantly to accommodate the Fed, said the people who asked not to be identified discussing private talks. The group is now bracing for a scenario in which its work on adding climate considerations to global bank reporting regulations may be shelved indefinitely, they said.