The U.S. Financial Stability Oversight Council (FSOC), chaired by Treasury Secretary Scott Bessent, voted this week to disband two panels devoted to assessing climate-related risks to the financial system, marking a sharp departure from the Biden-era push to integrate climate policy into financial regulation.
At its Sept. 10 meeting, the FSOC rescinded the charters of the Climate-related Financial Risk Committee and its external advisory body, the Climate-related Financial Risk Advisory Committee (CFRAC). The decision, approved in open session, effectively ends a two-year experiment in embedding climate-related risks into the council’s systemic risk framework.
