G20 Financial Stability Board Pauses Climate Policy Amid US Withdrawal, Member Divisions

The G20's Financial Stability Board (FSB) has released a medium-term plan to address climate-related financial risks, emphasizing improved coordination and data sharing among members. However, the FSB has paused further policy development due to divisions within the group, with some members considering the current progress sufficient while others advocate for more work. This halt coincides with the United States withdrawing from several climate-focused financial groups and signaling a cautious approach, including the absence of U.S. Treasury Secretary Scott Bessent from recent G20 meetings. Despite this, the FSB will continue to review climate-related financial topics annually and maintain its role as a coordinator of international efforts. The FSB's roadmap outlines ongoing work in areas such as disclosures, vulnerabilities analysis, and regulatory practices, aiming for a comprehensive and coordinated approach to climate financial risks. Observers express concern that the U.S. retreat could undermine a unified global stance on climate-related financial stability.