Biden Unveils Plan to Reduce Economic Risks Related to Climate Change

US President Joe Biden comments on job numbers in September in the Southern Courtroom at the Eisenhower Administration Building on October 8, 2021 in Washington, DC.

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On Friday, the Biden administration unveiled the government’s plan to address the systemic threat that climate change poses to all sectors of the economy.

The roadmap is part of the Biden administration’s long-term program to nearly halve domestic greenhouse gas emissions by 2030 and move to a zero economy by mid-century while mitigating the impact of climate change on the economy.

Deteriorating climate-related disasters such as heatwaves, droughts, floods and wildfires threaten to undermine the stability of the global financial system.

This year extreme weather events one in three Americans suffered, according to federal natural disaster declarations, and disrupted supply chains across the country. Over the past five years, extreme weather cost the Americans Damage totaled more than $ 600 billion, according to the National Oceanic and Atmospheric Administration.

The administration’s plan takes into account how climate change will affect the companies in which people invest, and aims to protect the savings and pensions of American families with retirement plans. Climate-related risks in retirement plans have already cost American retirees billions in lost retirement dollars, according to a White House newsletter.

The report says the Department of Labor “is leading efforts to remove regulatory barriers and ensure that employee benefit trustees can incorporate significant climate risks into their investment decisions.” “These efforts will better protect the savings of American workers and their families from the impacts of climate change, and can also mobilize capital for sustainable investment.”

The roadmap also identifies how agencies can improve the resilience of infrastructure in response to worsening climate disasters. It shows how agencies can use federal procurement to mitigate climate-related financial risks and integrate climate-related risks into federal lending and budgeting.

This month, more than 20 federal agencies released climate change adaptation plans that reveal the biggest threats climate change poses to their operations and facilities and how they plan to tackle them.

“Climate change poses a threat to our economy, American lives and livelihoods, and we must act now,” National Climate Advisor Gina McCarthy told reporters during a press conference on Thursday. “This roadmap isn’t just about protecting our financial system – it’s about protecting people, their wages, and their prosperity.”

“We are well aware of how much climate change poses a systemic risk to our economy,” said Bharat Ramamurthy, deputy director of the National Economic Council, in an address to the press. “We take a cautious approach that reflects the fact that inaction is unacceptable.”

The report is titled A Roadmap for Building a Climate Resilient Economy.

President Biden also visited Treasury Secretary Janet Yellen, the head of the Treasury. Financial Stability Supervisory Boardand financial regulators to report on climate financial risk data. This report has not yet been published.

The president and first lady are set to travel to Europe in two weeks, with the global climate crisis high on Biden’s agenda. Biden will also travel to Glasgow, Scotland to attend the United Nations Climate Change Conference of the Parties, or COP26, in early November.

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