Elizabeth Warren and Bernie Sanders, along with four other U.S. senators, want the Treasury Department of the United States to take action. They hold that the Department should be taking steps to provide clearer guidance to all financial institutions operating within the jurisdiction of the United States.
The action in question is to warn the financial institutions of the risks of climate change.
They have written a joint letter to the Treasury to stress the matter and convey their feelings. The Democratic senators are welcoming the efforts of the department. However, their letter emphasized the urgency that the matter demands.
So What Are The Potential Effects?
According to them, climate change could give rise to systemic risks, a decline in the value of properties in coastal areas, failures in the insurance market, and even more significant wildfire risks.
The democratic senators want the government to take immediate steps to address the climate crisis and check its impact on financial stability. Treasury Secretary Janet Yellen and climate counselor Ethan Zindler are the ones the Senators are addressing in the letter. They want the authorities responsible to take greater steps to protect the U.S. economy from the repercussions of climate change.
Recent climate-related disasters show major effects through financial disruptions. The costs of climate change have become evident. The senators are also significantly worried about nonbank financial institutions. These institutions had a role in the 2008 financial crisis.
In addition, the senators have called for stronger enforcement of actions from nonprofit organizations. They want the Internal Revenue Service (IRS) to look into concerns that prevent necessary actions on climate change. The group has also stressed funding climate change denial efforts.