US Treasury Disbands Climate Financial Risk Committees

U.S. financial regulators, under Treasury Secretary Scott Bessent, voted to disband two committees focused on monitoring financial risks related to climate change, marking a significant rollback of climate policies initiated during the Biden administration. This move, part of a 'back to basics' approach aimed at easing capital requirements and promoting economic growth, ends the efforts to integrate climate threats into financial regulations, drawing criticism from environmental advocates who warn it jeopardizes protections against climate-related economic impacts. Separately, the Energy Department under Secretary Chris Wright disbanded a controversial climate working group composed of climate skeptics that had produced a report downplaying the severity of human-caused climate change and suggesting possible benefits from warming. The dissolution followed a lawsuit by environmental groups citing violations of federal transparency laws and concerns over the group's biased membership and secretive operations. Although the group was disbanded, the department has not withdrawn the report, which continues to generate scientific feedback and debate. These actions reflect a broader dismantling of federal climate initiatives, including curtailing clean energy support and reducing regulations on fossil fuel production.