US: Climate Change Poses Major Risks to Financial Markets, Regulator Warns - - PressFrom - US
  •   
  •   
  •   

USClimate Change Poses Major Risks to Financial Markets, Regulator Warns

04:40  12 june  2019
04:40  12 june  2019 Source:   nytimes.com

From mowing messages to marches, UK's youth protest Trump's climate stance

From mowing messages to marches, UK's youth protest Trump's climate stance An art student had a clear message for Donald Trump on Monday - mowing "climate change is real" and a massive polar bear into grass underneath the U.S. President's flight path into London. Ollie Nancarrow, 18, spent the weekend cutting the message in huge letters into the lawn of his family home near Hatfield Heath in Essex, about 40 miles (65 km) northeast of London. In a bid to grab more attention at the start of the three-day state visit to Britain, Nancarrow also wrote "Oi Trump" and mowed a penis into another field, while other young climate activists prepared to join marches and protests in London.

Company boards are under pressure from financial regulators to ramp up disclosures and take greater action on risks posed by climate change . Global investment fund Atlas Infrastructure on Wednesday warned the push to limit climate change could slash the value of energy infrastructure

In world-first case, shareholders’ move comes after the Australian financial regulator warned climate change poses material risk to entire financial system.

Climate Change Poses Major Risks to Financial Markets, Regulator Warns© Greg Kahn for The New York Times Rostin Behnam, a trading regulator in Washington, issued a warning about risks to financial markets from global warming.

Want climate news in your inbox? Sign up here for Climate Fwd:, our email newsletter.

WASHINGTON — A top financial regulator is opening a public effort to highlight the risk that climate change poses to the nation’s financial markets, setting up a clash with a president who has mocked global warming and whose administration has sought to suppress climate science.

DNC opts against climate change debate, Inslee says

DNC opts against climate change debate, Inslee says “The DNC is silencing the voices of Democratic activists," Inslee said.

Climate change and increasingly severe weather pose a grave risk to financial systems and Mr Carney, 50, who has been head of the Bank for two years, warned that insurers were exposed to He added: "The challenges currently posed by climate change pale in significance compared with what

It finds that climate change is "likely to pose significant national security challenges for the United States over the next two decades,” which includes Scientific studies have shown that a major drought that climate change likely worsened helped spark the devastating Syrian Civil War, which in

Rostin Behnam, who sits on the federal government’s five-member Commodities Futures Trading Commission, a powerful agency overseeing major financial markets including grain futures, oil trading and complex derivatives, said in an interview on Monday that the financial risks from climate change were comparable to those posed by the mortgage meltdown that triggered the 2008 financial crisis.

“If climate change causes more volatile frequent and extreme weather events, you’re going to have a scenario where these large providers of financial products — mortgages, home insurance, pensions — cannot shift risk away from their portfolios,” he said. “It’s abundantly clear that climate change poses financial risk to the stability of the financial system.”

Pompeo downplays climate change, suggests 'people move to different places'

Pompeo downplays climate change, suggests 'people move to different places' Secretary of State Mike Pompeo downplayed climate change as a longstanding trend, suggesting that that modern societies could adapt to a changing environment, possibly with people moving to different places. "The climate's been changing a long time. There's always changes that take place," Pompeo said during an interview with the Washington Times published Friday, when asked whether he thought climate change was man-made and how best to address it. He did not mention anything about man-made pollution in his remarks. "Societies reorganize, we move to different places, we develop technology and innovation," he added.

Bank of England governor says firms must acknowledge risks to avoid ‘catastrophic impact’.

Australia’s financial regulator has warned that climate change poses a material risk to the entire financial system, and has urged Geoff Summerhayes, from the Australian Prudential Regulation Authority, says it is unsafe for companies to ignore the risks of climate change just because there is

Sign Up For the Morning Briefing Newsletter

Mr. Behnam was appointed by President Trump to a seat on the commission that, by law, must be filled by a Democrat. He said that unusual status gave him a measure of political protection that other appointees within the administration might not benefit from.

The commission is designed to operate more independently from the White House than many federal agencies, and legal experts said it would be difficult, though not impossible, for Mr. Behnam’s boss to fire or demote him.

“I have a unique bully pulpit,” Mr. Behnam said, sitting in his office in downtown Washington.

Experts in government affairs said Mr. Behnam’s initiative was unusual. Historically, presidential appointees on panels like the trading commission, the Federal Election Commission or the Securities and Exchange Commission have sometimes quietly pushed back at the presidential policies with which they disagreed, but “rarely do you see a commissioner go rogue and public,” James A. Thurber, director of the Center for Congressional and Presidential Studies at American University, said in an email.

White House blocked intelligence aide’s written testimony saying human-caused climate change could be ‘possibly catastrophic’

White House blocked intelligence aide’s written testimony saying human-caused climate change could be ‘possibly catastrophic’ White House officials barred a State Department intelligence official from submitting written testimony to Congress that warned human-caused climate change could be "possibly catastrophic" after State officials refused to excise the document's references to the scientific consensus on climate change. require(["medianetNativeAdOnArticle"], function (medianetNativeAdOnArticle) { medianetNativeAdOnArticle.

Global action on climate change could cause insurers’ investments in fossil fuels to take a huge hit We’re staring down a climate bubble that poses enormous risks to both our environment and World Bank president Jim Yong Kim said: “Sooner rather than later, financial regulators must address the

Banks, insurers, and other financial institutions must do more to take into account the risks posed by climate change to their business, a Dutch As global warming increases the risk of extreme weather events, regulators are giving more attention to its economic and market implications, with estimates

On Wednesday, Mr. Behnam plans to detail the formation of a panel of experts at the trading commission assigned to produce a report on how global warming could affect the financial sector, potentially impacting food costs, insurance markets, the mortgage industry and other economic pillars.

Because the report, expected late this year or early next, would be a product of the federal government, it would most likely put Mr. Behnam in direct conflict with the policies of the Trump administration. The report, which Mr. Behnam said he expected would focus in particular on potential harm to the nation’s agriculture sector, is likely to emerge at a moment when Mr. Trump will be making the case to farm states, which have already been hurt by his crop tariffs, to re-elect him in 2020.

His interest in the financial effects of climate change, he said, stems from six years working for Debbie Stabenow, a Michigan Democrat, on the Senate Agriculture Committee. He left the agriculture committee in 2017 to join the trading commission. Earlier, he had worked as a financial trader and a corporate lawyer in New York.

PG&E warns of power shutoffs to lower wildfire risks

PG&E warns of power shutoffs to lower wildfire risks Pacific Gas & Electric warned it might turn off electricity to thousands of customers in Northern California this weekend to reduce the risk of wildfires like the one sparked by power lines last year that killed 85 people and wiped out nearly 15,000 homes in Paradise. require(["medianetNativeAdOnArticle"], function (medianetNativeAdOnArticle) { medianetNativeAdOnArticle.getMedianetNativeAds(true); }); The warning came as forecasters issued the year's first red flag warning of high fire danger in portions of the Central Valley and areas north of San Francisco starting early Saturday.

Because the report focuses on the financial risks posed by taking no action in the face of climate change , government officials may take the The GAO report does not question scientific findings on global warming and it shows that many energy companies recognize the risk they face from climate

Global financial regulators are starting to work out a standard system for companies to voluntarily disclose climate risks , the governor of the Bank of England has warned insurance companies that they're at risk of being wiped out by climate change , and Saudi Arabia wants to kick its oil habit.

A White House spokesman, Judd Deere, declined to comment on Mr. Behnam’s plans.

Mr. Behnam is not the first financial regulator to call attention to the market risks posed by climate change.

In 2010, the Securities and Exchange Commission began requiring publicly traded companies to disclose the risks to their bottom lines associated with climate change. Coca-Cola, for instance, has noted in its financial disclosures that water shortages driven by climate change pose a risk to its production chains and profitability, and several insurance companies have put out reports noting the risk to the industry from more frequent extreme weather.

In January, the California electricity provider Pacific Gas and Electric declared bankruptcy while facing billions of dollars in liability costs related to damages from two years of wildfires. Experts said that could be an early indicator of a wider economic toll from climate change, which is making wildfires more frequent and destructive. The same month, the Bank of England said it intended to include climate change in its “doomsday scenario” stress tests, which the bank runs to ensure it has enough capital to withstand major financial shocks.

In April, the financial firm BlackRock, the world’s largest manager of financial assets, found that investors in electric utility stocks were quick to sell following extreme weather, setting up a pattern of market volatility.

Pope warns oil execs of need for "rapid" energy transition

Pope warns oil execs of need for Pope Francis warned oil executives on Friday that a "radical energy transition" to clean, low-carbon power sources is needed to stave off global warming as he pressed his environmental message in a closed-door Vatican summit. require(["medianetNativeAdOnArticle"], function (medianetNativeAdOnArticle) { medianetNativeAdOnArticle.

“ Markets need the right information to seize the opportunities and mitigate the risks that are being created by the transition to a low-carbon Michael Bloomberg, the chair of the taskforce, said: “ Climate change poses both economic risks and opportunities. But right now, companies don’t have

Report urges next president to appoint cabinet-level leader to prepare nation for the worst.

A coalition of 39 central banks, representing about half the global economy and including the central banks of England, China, Canada Japan and the European Union (but not the United States), has convened a working group to study to study the effects of climate change on financial markets.

“We understand that climate change causes a big systemic risk,” said Stefano Giglio, a professor of finance at Yale University who has published studies with the National Bureau of Economic Research on the financial consequences of warming. “But right now, we don’t have enough information, and we don’t have the right financial products to insure this risk. The CFTC can help give that information and help lay out a global marker for what we need to do.”

Mr. Trump has made it a signature priority to roll back climate change policies. He has announced that he intends to withdraw the United States from the Paris accord, an agreement among the nations to jointly address climate change, and he has set in motion legal efforts to weaken or undo major Obama-era regulations on planet-warming pollution from power plants and vehicle tailpipes.

In addition, a top White House official, William Happer, has sought to discredit the findings of the 2018 National Climate Assessment, a report produced by 13 federal agencies, which concluded that the effects of climate change could cause severe harm across the nation’s physical and economic landscape. The United States Geological Survey has taken steps to limit the use of scientific work that projects the effects of climate change past 2040 — a move that scientists say downplays the long-term consequences of rising greenhouse emissions.

And this month, the White House tried to stop the State Department from including basic climate science in the congressional testimony of an intelligence analyst. On Tuesday, the House Intelligence Committee asked the State Department for documents related to the White House efforts to exclude the testimony.

Mr. Behnam said he had incidents like these in mind when he decided to commission the financial risk study. “When I see people being shut down and muzzled, it concerns me that we are not taking steps to protect the people of our country with the best facts, the best science, the best numbers,” he said.

For more news on climate and the environment, follow @NYTClimate on Twitter.

Read More

Trump proposal nixes review of long-term climate impacts.
The White House on Friday proposed reversing an Obama-era policy that directs agencies to consider the climate impact from various projects.The draft guidance would change the way agencies evaluate the environmental effect of things like pipelines and oil and gas drilling."Agencies should analyze reasonably foreseeable environmental consequences of major Federal actions, but should not consider those that are remote or speculative," the guidance said in a section about greenhouse gas (GHG) emissions.

—   Share news in the SOC. Networks

Topical videos:

usr: 2
This is interesting!