This bill would create two new committees inside the Financial Stability Oversight Council (FSOC) to study and address climate-related risks to the U.S. financial system. The first, the Climate Financial Risk Committee, would be made up of staff from FSOC member agencies, led by the Deputy Assistant Secretary of the Council, and would coordinate agency work, share data and tools, and report to the Council. That committee could not be terminated or changed except by an Act of Congress.
The second, the Advisory Committee on Climate Risk, would have up to 30 members from climate science, climate economics, research groups, consumer or labor groups, investor networks, and other financial stakeholders (explicitly excluding oil and gas industry stakeholders). Some appointments would come from the Energy Department, EPA, and National Science Foundation. Members would serve staggered multi-year terms, and removal would require a 2/3 vote of FSOC agency heads. The Advisory Committee would meet bimonthly and advise FSOC.
The bill requires FSOC, together with the new committees, to publish a report within 270 days of enactment and then yearly. That report must assess how climate risks could affect financial stability, evaluate agency expertise and data gaps, examine insurance availability and its effects on credit and housing finance, review how nonbank firms and large bank holding companies manage climate risks, and compare U.S. climate-related disclosure rules to other countries. The bill also directs the Federal Insurance Office (FIO) to publish a report within one year on climate risks to the insurance sector and to collect and report detailed homeowners insurance underwriting data (disaggregated by zip code) for 2023 and 2024 and then annually thereafter.
Other provisions would require Federal banking agencies and the National Credit Union Administration to update supervisory guidance to include climate-related credit, liquidity, market, operational, and reputational risks for institutions with more than $50,000,000,000 in assets. FSOC must also update its nonbank systemically important financial institution (SIFI) designation guidance to explain how climate risk will be considered. The bill expresses that U.S. agencies should join international climate-finance groups like the Network for Greening the Financial System and relevant Basel Committee efforts.
No publicly available information on estimated costs or budgetary effects is included in the bill text or metadata. The bill requires reports, data collection, and agency updates, which would involve agency staff time and administrative expenses, but no dollar amounts are provided.
The bill’s text frames its purpose as strengthening the ability of FSOC and member agencies to identify, assess, and mitigate climate-related risks to financial stability. It calls for better data, clearer coordination across agencies, more frequent reporting, and updates to supervision and nonbank SIFI guidance. The bill also directs focused insurance-sector analysis and collection of detailed homeowners insurance data to inform how climate risks affect insurance markets and housing finance.
No publicly available information on opposition views, specific criticisms, or stated counterarguments is included in the bill text or the provided metadata.