Federal Bank Regulators’ Withdrawal of Climate Risk Management Principles is a Reckless Political Move - CleanTechnica

On October 16, 2024, U.S. federal bank regulators—the Federal Reserve, the Office of the Comptroller of the Currency (OCC), and the Federal Deposit Insurance Corporation (FDIC)—withdrew the climate risk management principles they had finalized just a year earlier in October 2023. These principles provided critical guidance for large banks on managing climate-related financial risks, including directives on net-zero commitments and climate scenario analysis, which are essential for addressing both physical and transition risks posed by climate change. The withdrawal marks a significant policy reversal that critics argue undermines efforts to safeguard financial stability against climate-induced disruptions. Jessye Waxman, Campaign Advisor with the Sierra Club’s Sustainable Finance campaign, condemned the move as a politically motivated step that disregards the growing scientific consensus on climate risks and their systemic threat to the financial system. She emphasized that the risks of climate change to the economy have only intensified, and that abandoning these regulatory principles could increase the likelihood of another financial crisis akin to