US: U.S. Treasury withdraws from global financial climate coalition

The U.S. Treasury on Thursday announced its withdrawal from the network of central banks and regulators focused on creating a global financial system to withstand climate change, as the Trump administration continues to separate itself from such initiatives in favor of boosting its domestic business and energy sectors.

The Treasury had joined the Network of Central Banks and Supervisors for Greening the Financial System in February 2022, under the Biden administration, which sought to address climate change as an issue for both national security and the economy.

Its exit follows President Donald Trump on his first day in office on Jan. 20 signing executive orders to terminate President Joe Biden’s Green New Deal and his so-called Green Agenda — including pausing funds for electric vehicle charging stations to rescinding the U.S. International Climate Finance Plan, a multibillion-dollar foreign policy and national security initiative to aid global climate transition efforts.

The Trump administration also withdrew the United States from the Paris Climate Agreement, which Biden had rejoined after Trump initially revoked U.S. membership during his first term in office.

“NGFS was organized to help meet the goals of the Paris Agreement, from which the United States withdrew. NGFS’ initiatives are inconsistent with this Administration’s priorities to grow the U.S. economy and American jobs, and NGFS’ role diverges from the traditional technical and coordinating roles of other international fora,” the Treasury said in its statement Thursday.

UPI has requested comment from the NGFS.

The Federal Deposit Insurance Corporation also withdrew from the NGFS on Jan. 21, saying in a statement that the coalition “is not within the FDIC’s authorities and mandate.”

In the final days of the Biden administration, the Board of Governors of the Federal Reserve System announced its withdrawal from the NGFS. Its seven board members voted five in favor of leaving the group, with two governors abstaining.

The Fed said “the work of the NGFS had increasingly broadened in scope, covering a wider range of issues that are outside of the Board’s statutory mandate.”

In response, the NGFS said it “regrets but respects” its decision to leave.

Founded in 2017 with eight central banks and supervisors, the NGFS’ “coalition of the willing” has since grown to more than 160 members and observers.