Treasury Secretary Janet Yellen reportedly claimed on Tuesday that climate change might cause decreases in asset prices and warned that a delayed and chaotic transition to renewable energy sources could hurt the financial system.
Yellen made the remarks during the inaugural meeting of the Climate-Related Financial Risk Advisory Committee, which was formed to “identify and minimize the risks that climate change presents” to economic stability.
Yellen’s comments are consistent with those made by other Biden administration officials that carbon emissions may have an impact on the economy.
“As climate change intensifies, natural disasters and warming temperatures can lead to declines in asset values that could cascade through the financial system. And a delayed and disorderly transition to a net-zero economy can lead to shocks to the financial system as well. These impacts are not hypothetical. They are already playing out.” Yellen reportedly said.
Yellen mentioned storms and wildfires in California as proof that climate change is causing economic hardship, even though experts disagree that there is an established correlation between particular weather events and a changing climate.
This week, Republican lawmakers of the House and Senate, along with a few Democrats, reversed the final regulation.
President Joseph Biden is anticipated to reject the resolution passed by the legislators.
Environmental, social, and corporate governance critics argue that the investing philosophy mingles political and social concerns in a way that compromises or distracts from profitability.