Federal Reserve Chair Jerome Powell, like a lot of federal regulators, likes to say that central banks can’t make climate policy. But that doesn't mean they should, or can afford to, ignore climate risks. We're already spending billions on climate fueled disasters, and banks are continuing to lend trillions to new fossil fuel infrastructure, while fossil fuel companies rake in billions in profits. Clearly, the fundamental economics of climate change are badly out of balance.
And there are many things the Fed can do to help fight climate change. Recent Fed rate increases have made renewable energy projects more expensive. The Fed can create special facilities to loan money for renewable energy projects at lower rates.
Additionally, the Fed can advise banks to consider climate change when funding fossil fuel projects. The Fed has already asked banks to consider climate related risks and could do more. And in fact, the central banks of Japan, China and the EU already do more to fight climate change.
The Fed spared no efforts or creativity to bail out the financial sector during the Great Recession. It should spare no efforts to fight the climate crisis. Add your name to the petition if you agree.
Thanks,
Drew and the 198 methods of direct action, and divestment is one.
