Bill > S1471

This bill, called the Climate Change Financial Risk Act of 2025, requires the Federal Reserve Board to develop and conduct comprehensive financial risk analyses related to climate change. The bill establishes a Climate Risk Scenario Technical Development Group composed of 10 experts (5 climate scientists and 5 economists) who will help develop three distinct climate change risk scenarios with different global temperature increase projections. These scenarios will assess potential physical and transition risks to the financial system, including impacts on business operations, asset values, agricultural production, labor productivity, and economic disruptions. The bill mandates biennial climate risk analyses for large financial institutions (with over $250 billion in assets) to evaluate their ability to withstand financial losses under different climate scenarios. Additionally, the bill requires these institutions to submit climate risk resolution plans that address vulnerabilities identified in the analyses. It also requires the Federal Reserve to conduct a sub-systemic exploratory survey to assess how financial entities in geographic areas or industries significantly exposed to climate change plan to adapt their business models. The legislation reflects growing concerns about climate change's potential systemic risks to the financial sector and aims to enhance financial institutions' resilience to climate-related economic challenges.

Housing and Urban Affairs

https://www.congress.gov/bill/119th-congress/senate-bill/1471/all-info