Treasury Secretary Focuses on Climate Change

Treasury Secretary (and former Chair of the Federal Reserve) Janet Yellen, in her opening remarks during her first appearance as head of the Financial Stability Oversight Council, identified climate change as "an existential threat" and as "a tremendous risk to our country's financial stability."  Indeed, when identifying her agenda for the Financial Stability Oversight Council, addressing climate change was designated as one of the top three priorities. 

This agenda is similar to that propounded by numerous other government figures and regulatory bodies in the Biden Administration.  Several regulators--including the SEC, which is focused on the financial sector--have indicated a focus on climate change, and are beginning the process of implementing regulations in service of that vision. 

Although the broader significance of Secretary Yellen's remarks is still to be seen, it is noteworthy that many of the various regulatory impulses from the Biden Administration concerning climate change appear to be emanating from financial regulators, which is not the scenario that many would consider the most natural or obvious.  This suggests that much of the government effort concerning climate change may be developed through and by regulations of the financial sector, which would be an indirect method of proceeding (as opposed to direct action by the EPA, for example).