Leveraging finance and financial risk mitigation to confront climate change challenges is the aim of a new climate policy strategy announced by the Treasury Department Monday, which also includes a “climate hub” and climate counselor.
In a release, the Treasury said its strategy would focus on three areas: climate transition finance, climate-related economic and tax policy, and climate-related financial risks.
The agency said the strategy will allow it to “bring to bear the full force of the Treasury Department on domestic and international policymaking” with regard to risks posed by climate change.
Among other things, the Treasury said, its policy will promote globally consistent approaches to climate-related financial risks; and contribute to understanding and mitigating the risks that climate change poses to the stability of the U.S. and global financial system and economy.
The climate hub, the agency said, will “coordinate and enhance” existing climate related activities at Treasury, including those from the agency’s offices of domestic finance, economic policy, international affairs, and tax policy.
Leading the climate hub, Treasury said, will be John E. Morton. He will report directly to and advise Treasury Secretary Janet Yellen on a broad range of climate matters, and focus in particular on the agency’s efforts to “facilitate and unlock the financing needed for investments to achieve a net-zero economy at home and abroad,” Treasury said.
Morton was most recently a partner at Pollination, a specialist climate change advisory and investment firm. Morton also served in the Obama administration as White House senior director for energy and climate change at the National Security Council.
Yellen, in a statement, said addressing climate change is a top priority for Treasury, adding that it requires “economy-wide investments by industry and government as well as actions to measure and mitigate climate-related risks to households, businesses, and our financial sector.”