"President Biden thrust his administration into a race to confront the economic risks of global warming by signing an executive order yesterday that brought the once niche issue of climate finance into the highest levels of government.

The long-awaited directive requires federal agencies to assess the economic dangers that rising temperatures could have on the government — and homeowners, retirees, businesses and the U.S. financial system. It marks a major turning point for U.S. financial policy, which until last year was mostly silent on an issue that had for years been a priority among European nations.

The order directs White House officials and Cabinet secretaries to take a series of steps to prod regulators of banking, housing and other industries to identify and address the risks facing the economy.

'Our modern financial system was built on the assumption that the climate was stable. And that assumption has largely dominated existing financial models, and it underpinned the way that we invest capital, the way that we have built society, and the way that we have forecasted for the long term,' said Brian Deese, director of the National Economic Council. 'Today, it's clear that we no longer live in such a world.' "

Avery Ellfeldt reports for E&E News May 21, 2021. [2]

SEE ALSO:

"Get Ready for Financial Shocks From Climate Change, Biden Tells Officials" (New York Times) [3]

"Biden Order On Climate Financial Risk Reaches Deep Into The Economy" (Politico) [4]

"Fact Sheet: President Biden Directs Agencies to Analyze and Mitigate the Risk Climate Change Poses to Homeowners and Consumers, Businesses and Workers, and the Financial System and Federal Government Itself" (White House release) [5]

"Executive Order on Climate-Related Financial Risk " (White House) [6]