The vast economic implications of climate change are explored here as we acknowledge  the interrelationships of economic and financial risk that are associated and often amplify one another --for example, weather-related property destruction can lead to bank losses, leading to less lending, leading to reduced investment, etc. We are watching, in these pages, the federal reserve closely as they monitor these connections – along with the actions of international organizations, governments, businesses as we search to develop an understanding of the implications of climate change for the financial sector and the financial stability of ourselves, our families, and our world.

We are also looking to gain information which can, in turn,  wield influence and encourage action by individuals, communities, financial organizations (such as pension funds), insurance companies, corporations and governments. Each member of the economy can influence change within their area of influence if they realize the extent of their power and wish to exercise it.

The section is organized in the following way:

CORONAVIRUS: As a result of the pandemic, global emission dropped in 2020 but the decline wasn’t nearly enough to halt the buildup of greenhouse gases in the atmosphere. This page also appears in the HEALTH section of the website.

COSTS: Extreme weather events cost U.S. taxpayers $99 billion in 2020 and things are only getting worse, and that is not taking into consideration the health impacts, and other side effects of climate change. Economic experts and climate insurers have warned that if climate change continues unmitigated, the world economy (particularly in developing countries) will lose growth opportunities in the trillions of dollars.

JOBS: Our future economic health will be heavily impacted by the jobs a clean energy future can deliver. It focuses on where the green jobs are growing.

INVESTMENTS AND DIVESTMENTS: As individual shareholders, we can take advantage of ESG (Energy, Sustainability, and Governance) investing and deliver our dollars to organizations, corporations and ideologies that are fighting against climate change. We can also divest from those organizations as can university, government and union pension funds.

INSURANCE: Insurance companies are in the business of predicting future loss, and so must ensure that they reserve for such events. What happens when history is no longer a reliable guide for predicting the future? Going forward, insurance companies may have a heavier hand in shaping human behavior. It’s unlikely that homebuyers would purchase (or be able to purchase) a house in uninsurable areas, for example.

HOUSING: Extreme weather has caused the burning and flooding of thousands of homes. It has destroyed power in both the 2019/20 Texas winter freeze and the 2021 summer hurricanes. It has disproportionately harmed the poor who have fewer resources to move. We have numerous mitigation and adaptation measures to explore.

THE CIRCULAR ECONOMY: Eliminating waste and pollution, this is instead a closed-loop system emphasizing reuse, recycling, sharing, and repair. Ideally, waste and pollution are cut out of the equation in the design phase, and products and materials are kept in use. One of the tools in our tool box.

CARBON PRICING: Burning fossil fuels is by far the greatest source of the greenhouse gases causing climate change. However, the full cost of fossil fuel energy is not included in the price of the fuel. We pay for that later when we deal with the consequences of global warming. Using a car to illustrate this point, “We pay for the gas, we pay for the car, and we pay for the insurance, but we don’t pay for the pollution that comes out of the tail pipe.” This page explores different carbon pricing solutions and appears again in our POLITICS section.

Click on any circle to learn about one of the billion-dollar weather events, or any state to learn about billion-dollar droughts, between January 2000 and January 2022. Source: National Oceanic and Atmospheric Administration’s National Climatic Data Center.


Treasury Secretary Yellen warns that losses tied to climate change could ‘cascade through the financial system’

By Emma Newburger 03/07/23
Treasury Secretary Janet Yellen on Tuesday warned that climate change is already taking a significant economic toll and could cause extensive losses to the U.S. financial system in the coming years.
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PG&E delivers bill shocks to customers amid soaring natural gas prices

By George Avalos 02/27/23
Soaring prices for natural gas and this winter’s icy blasts have jolted unsuspecting PG&E customers with brutal — and fast-rising — monthly utility bills.
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Biden to nominate Ajay Banga to lead World Bank

By Hans Nichols 02/23/23
President Biden will nominate Ajay Banga, former president and CEO of Mastercard, to serve as president of the World Bank, the White House announced today.
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Where U.S. house prices may be most overvalued as climate change worsens

By Brady Dennis 02/16/23
The nation’s real estate market has yet to fully account for the increasing threats to millions of homes from rising seas, stronger storms and torrential downpours, according to new research published Thursday.
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Chairman Whitehouse Statement on CBO Outlook

Today, Senator Sheldon Whitehouse, Chairman of the Senate Budget Committee, issued a statement following the annual release of the Congressional Budget Office’s (CBO) Budget and Economic Outlook and a projection that the debt limit must…
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World Bank president, dogged by climate questions, will step down early

By David Gelles 02/15/23
David Malpass, under fire for months by critics who accused him of climate denialism, said he would resign in June, a year before his term ends....
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Electric vehicle sales top $1 trillion in wake-up call for carmakers

By Colin McKerracher 02/14/23
Global spending on electric vehicles is surging. According a new report published by BloombergNEF on investment in the energy transition, annual spending on passenger EVs hit $388 billion in 2022, up 53% from the year…
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Biden earmarks billions for rooftop solar under climate law

By Jennifer A Dlouhy 02/14/23
In the government’s initial moves to allocate the $27 billion Greenhouse Gas Reduction Fund, it gave home and community solar a boost but dodged a decision on creating a national green bank.
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A Huge, Uncharted Experiment on the U.S. Economy Is About to Begin

By Robinson Meyer 02/12/23
If you want to understand the immense windfall the Biden administration is about to bestow on green industries, take a look at hydrogen. Engineers still aren’t exactly sure what role the gas will play in…
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Electric vehicles could match gasoline cars on price this year

By Jack Ewing 02/10/23
Competition, government incentives and falling raw material prices are making battery-powered cars more affordable sooner than expected.
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Five powerhouse, economically friendly policies that can slash emissions

By Sarah Spengeman 02/07/23
Minnesota just passed a 100% clean electricity bill with one of the country’s fastest timelines to make the switch—by 2040. With its rich wind resources, a surprising amount of solar, and a strong clean energy…
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Big Oil is making billions, but don’t expect lower gas prices

By Kyra Buckley 02/03/23
Exxon Mobil: $55.7 billion. Shell: $42.3 billion. Chevron: $35.5 billion. ConocoPhillips: $18.7 billion. As expected, oil companies are reporting blockbuster profits for 2022. But directing those profits in a way that shields consumers from chaotic…
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Billion-Dollar Weather and Climate Disasters

Summary of U.S. billion-dollar weather and climate related disaster research, methodology, and data sources.

Track public money for energy in recovery packages

As governments across the world continue to invest hundreds of billions in the energy system to reboot their economies, our analysis is expanding to cover more countries and provide a more comprehensive global picture. Countries…

Task Force on Climate-related Financial Disclosures

Financial markets need clear, comprehensive, high-quality information on the impacts of climate change. This includes the risks and opportunities presented by rising temperatures, climate-related policy, and emerging technologies in our changing world.

Origin of the Network for Greening the Financial System

At the Paris “One Planet Summit” in December 2017, eight central banks and supervisors established the Network of Central Banks and Supervisors for Greening the Financial System (NGFS). Since then, the membership of the Network…

Tracking climate mitigation efforts in 30 major emitters

This report by NewClimate Institute, International Institute for Applied Systems Analysis (IIASA) and FTSE Russell tracks climate mitigation efforts in 30 countries and regions. Our analysis shows that emissions trends remain far from the goals…

Gauging Economic Consensus on Climate Change – Issue Brief

We conducted a large-sample global survey on climate economics, which we sent to all economists who have published climate-related research in the field’s highest-ranked academic journals; 738 responded. To our knowledge, this is the largest-ever…

Climate Roadmap for U.S. Financial Regulation

The Biden Administration has taken office with an urgent climate mandate to act on climate and announced a “whole-of-government” approach in response.1 Because climate change threatens our financial system and, indeed, entire economy, the United…

Addressing Climate as a Systemic Risk: A call to action for U.S. financial regulators

This Ceres report outlines how and why U.S. financial regulators, who are responsible for protecting the stability and competitiveness of the U.S. economy, need to recognize and act on climate change as a systemic risk.

Moving To A Finite Earth Economy – Crew Manual

Moving To A Finite Earth Economy By 2030 Addresses Two Critical Human Issues: The Existential Threat Of Climate Change, And The Fact That Growth Economies Are The Root Cause.

Resources as a Constraint on Growth By William D. Nordhaus

Things which have traditionally been treated as free goods-air, water, quiet, natural beauty-must now be treated with the same care as other scarce goods.


Climate change could cost U.S. budget $2 trln a year by end century

By Timothy Gardner   04/04/22  
Flood, fire, and drought fueled by climate change could take a massive bite out of the U.S. federal budget per year by the end of the century, the White House said in its first ever…
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Renewables Are Key to Cutting Emissions Over Next Decade, U.N. Panel Says

By Nidhi Subbaraman   04/04/22  
Countries must make major, rapid shifts away from fossil fuels and to renewable energy to meet the goals in the 2015 Paris agreement, climate experts tapped by the United Nations said in a report...
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Revolutionary changes in transportation could slow global warming

By Alan Jenn   04/04/22  
Around the world, revolutionary changes are under way in transportation. More electric vehicles are on the road, people are taking advantage of sharing mobility services such as Uber and Lyft, and the rise in telework…
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The new IPCC report was delayed as scientists debated carbon capture

By Ciara Nugent   04/04/22  
Cutting greenhouse gas emissions to prevent the worst of climate change would be relatively cheap and technologically feasible, but governments and financial bodies are failing to do so as they continue to prop up the…
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You’ve heard Bitcoin fuels the climate crisis,but did you know a software code change could clean it up?

And it’s quickly surpassing more countries, according to the University of Cambridge. Unless its price is decoupled from its energy use, Bitcoin will drive devastating climate impacts.
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Ben McKenzie Would Like a Word With the Crypto Bros

By David Yaffe-Bellany   03/31/22  
Ben McKenzie was driving his father’s silver Subaru through Texas farmland, talking in breathless bursts about money: who has it, who needs it, what makes it real or fake. He detailed the perils of cryptocurrency…
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US Taxpayers Are Spending Billions to Keep Farms on Flooded, Unproductive Land

By Georgina Gustin   03/31/22  
The vast Mississippi River watershed contains famously fertile soil, making the cropland of the American Midwest some of the most valuable and productive in the world. The watershed is also projected to flood more frequently…
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EV Shift Would Spur Trillions in Health Benefits, Report Says

By Jennifer Hijazi   03/30/22  
Widespread transition to zero-emission vehicles would yield more than $1 trillion in public health benefits, according to research from the American Lung Association. A nationwide switch to electric cars and other vehicles would save 110,000…
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Statement by Martin J. Gruenberg, Acting Chairman, FDIC Board of Directors On the Request for Comment on the Statement of Principles for Climate-Related Financial Risk Management for Large Financial Institutions

Today, the FDIC Board approved a proposed Statement of Principles for Climate-Related Financial Risk Management for Large Financial Institutions (Statement of Principles). The proposed Statement of Principles provides a high-level framework for the safe and…
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U.S. International Climate Finance: FY2022

U.S. International Climate Finance Over the past several decades, to varying degrees, the
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Sarah Bloom Raskin withdraws her nomination to the Fed Board

By Jane Mayer   03/15/22  
Biden’s nominee had publicly encouraged measures to mitigate climate change, including a transition to cleaner energy, which triggered a backlash from America’s powerful oil, gas, and coal industries.
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Manchin won’t support Raskin for the Fed, imperiling her nomination.

By Emily Cochrane and Jeanna Smialek   03/14/22  
Senator Joe Manchin III, a key centrist Democrat, announced on Monday that he would not support Sarah Bloom Raskin for a top position on the Federal Reserve, potentially dooming her chances for confirmation as Republicans…
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As War Rages, a Struggle to Balance Energy Crunch and Climate Crisis

By Brad Plumer , Lisa Friedman and David Gelles   03/10/22  
As the world reels from spikes in oil and gas prices, the fallout from Russia’s invasion of Ukraine has laid bare a dilemma: Nations remain extraordinarily dependent on fossil fuels and are struggling to shore…
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How Does Climate Change Affect Real Estate Prices?

By Andrew Dehan   02/27/22  
Whether you notice it or not, climate change is affecting the world around us. From droughts to fires to rising amounts of hurricanes, we’re noticing how our world is changing. These changes are causing shifts…
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DOE Releases First-Ever Comprehensive Strategy to Secure America’s Clean Energy Supply Chain

The U.S. Department of Energy (DOE) today released America’s first comprehensive plan to ensure security and increase our energy independence. The sweeping report, “America’s Strategy to Secure the Supply Chain for a Robust Clean Energy…
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Soaring Gas Prices Could Have Been Mitigated If Energy Sector Plugged Huge Methane Leaks, IEA Says

By Robert Hart   02/23/22  
Methane leaks from the energy sector are much higher than what national governments claim, the International Energy Agency said Wednesday, adding the industry could slash emissions of the highly polluting greenhouse gas—widely recognized as a…
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What’s Driving Insurers to Prioritize ESG Investments?

By Jonathan McGoran   02/23/22  
A recent survey of 280 decision makers at U.S.-based life/annuity and P&C insurers shows increased attention and commitment to aligning investments with Environmental, Social and Governance (ESG) goals.
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Climate investing ‘boycott bills’ flood state capitals

By Zack Colman and Jordan Wolman   02/15/22  
Texas, West Virginia and Oklahoma are among states moving to bar officials from dealing with businesses that are moving to ditch fossil fuels or considering climate change in their own investments. Those steps come as…
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How Spiking Energy Prices Complicate the Fight Against Global Warming

By Brad Plumer   02/02/22  
While world leaders have vowed to scale back the use of fossil fuels to help keep a lid on global warming, a drastic upheaval in the markets for oil, natural gas and coal could complicate…
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JPMorgan fights nuns and activists over climate disclosure proposals

By Patrick Temple-West   01/27/22  
JPMorgan Chase is fighting four shareholder petitions related to climate change at the Securities and Exchange Commission, in spite of a new policy by the US agency to take a tougher stance against attempts to…
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Named: The oil companies gambling on climate failure

By Joe Lo   01/26/22  
Fossil fuel firms are gambling on global warming going unchecked and the price of oil remaining high, a Carbon Tracker analysis has claimed.
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The net-zero transition: What it would cost, what it could bring

In a new report, we look at the economic transformation that a transition to net-zero emissions would entail—a transformation that would affect all countries and all sectors of the economy, either directly or indirectly. We…
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Citigroup sets rare hard target to reduce energy-sector emissions

By Ross Kerber   01/20/22  
Citigroup Inc (C.N) on Wednesday laid out goals for corporate borrowers to cut emissions that included a rare "absolute reduction" target for companies in the energy sector by the end of the decade. Citi said…
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‘Coastal county snapshots’ delivers new tools, data for climate resilience

By NOAA   01/18/22  
A major update to a popular NOAA tool used to inform planning and decision-making in coastal communities is now online. Coastal County Snapshots, available on NOAA’s Digital Coast platform, turns complex data into easy-to-understand charts,…
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Heading for a Second Term, Fed Chair Jerome Powell Bucks a Global Trend on Climate Change

By Marianne Lavelle   01/16/22  
Many of the questions Jerome Powell faced at his Senate confirmation hearing last week would have been familiar to any Federal Reserve chair on Capitol Hill: Where is the economy heading? What about inflation? How…
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Biden names Sarah Bloom Raskin as Fed’s top banking regulator

By Courtenay Brown and others   01/14/22  
President Biden will nominate Sarah Bloom Raskin as the Federal Reserve's top Wall Street cop, a Biden administration official said, one of three nominees being unveiled for the critical open seats on the central bank's…
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Integrating Biology into Ocean Observing Infrastructure: Society Depends on It

By F. Muller- Karger & Others   01/07/22  
The link between humans and life in the sea is not something most of us think about every day. However, we humans have historically built communities close to the sea, and we have studied how…
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Climate Change an ‘Emerging Threat’ to U.S. Financial Stability, Regulators Say

By Alan Rappeport   12/17/21  
Federal regulators warned for the first time in an annual report to Congress on Friday that climate change was an “emerging threat” to the U.S. financial system, laying out how the costs associated with more…
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Finance group fails to deliver at COP26

By Michael Northrop   11/29/21  
What does it mean that we have already financed 1.5֯ C of warming? In short, that the cumulative impact of the fossil fuel projects banks and investors have financed will be 1.5֯ C degrees of…
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Bankers Took Over the Climate Change Summit. That’s Bad For Democracy.

By Christopher Caldwell   11/25/21  
The big annual United Nations forum for debate on climate change ended this month in Glasgow in a way that left many attendees bewildered. Money men have taken the thing over. COP26, as the event…
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Biden taps Powell for another term as Federal Reserve chairman

By Courtenay Brown   11/22/21  
President Biden said today he will renominate Federal Reserve chairman Jerome Powell for another term — as market-watchers widely anticipated.
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WV Treasurer Moore Leads 15-State Coalition to Push Back Against Bank Boycotts of Traditional Energy Industries

“I’m proud to continue to stand with my colleagues against these attacks on our states’ coal, oil and natural gas industries,” Treasurer Moore said. “These industries – which are engaged in perfectly legal activities –…
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The Real Reason Gas Prices Are So High Right Now

By Molly Taft   11/19/21  
On Wednesday, amid a fresh surge in gas prices, the Biden administration announced that it had asked the FTC to investigate whether oil and gas companies were doing anything illegal to manipulate prices. Republicans have…
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Why the U.S. Didn’t Join 40 Other Countries in Pledge to End Coal

By Benjamin Storrow   11/08/21  
The Biden administration arrived this month at international climate talks in Scotland with the intent to prove the United States was again ready to lead the fight against global warming.But when more than 40 countries…
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Biden, other G-20 world leaders formally endorse groundbreaking global corporate minimum tax

By Jeff Stein   10/30/21  
The new global minimum tax of 15 percent aims to reverse the decades-long decline in tax rates on corporations across the world.
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Innovating to net zero: An executive’s guide to climate technology

By Tom Hellstern and Others   10/28/21  
New technologies represent a critical part of the world’s decarbonization tool kit—and the world does not yet have all the technologies that it would need to solve the net-zero equation by balancing sources and sinks…
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U.S. Warns Climate Poses ‘Emerging Threat’ to Financial System

By Alan Rappeport and Christopher Flavelle   10/21/21  
A Financial Stability Oversight Council report could lead to more regulatory action and disclosure requirements for banks.
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The firms that help keep oil flowing

By Hiroko Tabuchi   10/13/21  
Secretive investment funds are putting billions into fossil fuel projects, buying up offshore platforms and building new pipelines.
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$5.9 trillion spent on fossil fuel subsidies in 2020: IMF

By CNBC18.COM   10/09/21  
Scientists, environmental experts, and global bodies have called on nations to reduce their consumption and production of fossil fuels. But the countries have been doling out subsidies worth $5.9 trillion for the production of coal,…
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Fed’s Brainard signals that climate change guidance may be coming for big banks.

By Jeanna Smialek   10/07/21  
Lael Brainard, a Federal Reserve governor, on Thursday offered the clearest signal yet that America’s central bank is going to begin seriously assessing big banks’ exposure to climate-related financial risks.
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Janet Yellen faces climate test as environmentalists push for more aggressive financial action

By Jeff Stein   09/18/21  
While President Biden has called climate change a “code red” crisis, his treasury secretary is poised to resist calls to ask financial regulators to rein in lending to the nation’s worst greenhouse-gas emitters.
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Could climate change trigger a financial crisis?

n recent years regulators have begun warning about the threat that climate change poses to the stability of the financial system. Following its strategy review in July, the European Central Bank (ecb) will assemble a “climate…
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Bitcoin Uses More Electricity Than Many Countries. How Is That Possible?

By Jon Huang, Claire O’Neill, and Hiroko Tabuchi   09/03/21  
Amount of household electricity required to mine one coin: a few seconds’ worth. Bitcoin’s value: basically nothing. Today, you’d need a room full of specialized machines, each costing thousands of dollars.
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Can we save the planet by shrinking the economy?

By Kelsey Piper   08/03/21  
Social media gives everyone the opportunity to argue with the world. So if you want to persuade people about the need to tackle climate change and how we should do it, social media is a…
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How Financial Institutions Can Help Combat Climate Change

By TechFunnel Contributors   07/15/21  
There is often an assumption held by ordinary people that finance and positive environmental change are oxymorons. that the finance industry exists to serve the bottom line and nothing else. This has slowly been changing…
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Fannie and Freddie Mortgages Vastly Underestimate Flooding Risks

Climate-induced flooding has inundated coastal cities, yet new reporting from Politico shows that government mortgage lenders like Fannie Mae and Freddie Mac continue to pump money into severely flood-prone property markets. 
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Senate Democrats reach $3.5 trillion budget agreement

By Alan Fram And Lisa Mascaro   07/14/21  
Senate Democrats announced late Tuesday that they’d reached a budget agreement envisioning spending an enormous $3.5 trillion over the coming decade, paving the way for their drive to pour federal resources into climate change, health…
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Remarks by secretary of the treasury janet l. Yellen at the venice international conference on climate

Thank you, Ignazio, for hosting us today, and how appropriate to be in Venice. Even if this weren’t a conference about climate change, how could we not raise the issue here? For all of us,…
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UN chief urges G20 finance chiefs to support global COVID vaccine plan, climate finance

“To restore trust in multilateralism, we need to deliver on vaccines, economic recovery and climate finance”, he said in a video message to G20 finance ministers meeting in Venice, Italy.  “With your leadership and political…
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US’s Yellen urges better coordination on carbon policy

By David Lawder   07/09/21  
U.S. Treasury Secretary Janet Yellen called on Friday for better international coordination on carbon-cutting policies to avoid trade frictions, days before the European Union is due to unveil a controversial carbon border tax.
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