G20 Watchdog Takes Step Back on Climate Financial Policy
The G20's Financial Stability Board has unveiled its climate risk management plan but halted further policy development amid the U.S.'s withdrawal from related groups. Concerns emerged over fragmented responses if the retreat is supported at the G20 level, risking weakened international climate finance policies.
The G20's financial watchdog has introduced a new climate risk management framework without advancing further policy work. This decision comes in light of the U.S. pulling out from multiple climate-focused groups, challenging global financial stability efforts.
The Financial Stability Board (FSB) emphasized coordination and data sharing concerning climate-related risks but noted a division among members regarding the need for additional work. Despite recent progress, there's hesitation to pursue further climate-focused financial policy development.
With the U.S. gearing up to lead the G20 next year, its retreat raises concerns about a fragmented approach, potentially diluting the unified global stance on climate financial risks. Observers like Finance Watch criticize this move as multilateral regression.
(With inputs from agencies.)
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