March 31, 2025 - 22:41
WASHINGTON - The U.S. Treasury Department's Office of the Comptroller of the Currency (OCC) has officially retracted its guidance aimed at helping banks manage climate-related financial risks. This decision was announced on Monday and marks a significant shift in regulatory focus under the current administration.
Acting Comptroller of the Currency Rodney Hood stated that the principles previously established were deemed "overly burdensome and duplicative." This move reflects a broader trend in the government's approach to climate policy, especially since the onset of the current administration, which has seen a withdrawal from the Paris Agreement and a reduction in international climate commitments.
The withdrawal of this guidance raises questions about the future of climate risk management in the banking sector, as financial institutions may now face increased uncertainty regarding their responsibilities in addressing climate-related issues. Critics argue that this decision could undermine efforts to mitigate the financial impacts of climate change, potentially exposing banks and their customers to greater risks in the long term.
