/>iOn September 10, 2025, the Financial Stability Oversight Council--a cross-agency council chaired by the Secretary of the Treasury, and responsible for monitoring the stability of the U.S. financial system--voted to “rescind the charters of the Council's Climate-related Financial Risk Committee and Climate-related Financial Risk Advisory Committee.” Both of these committees were established under the Biden Administration as part of that administration's efforts to address the impact of climate change, including to develop data concerning the effect of climate change on particular sectors in the economy (e.g., the insurance and housing markets). The disbandment of these committees--for the stated purpose of “focus[ing] [the council's] attention and resources on core financial stability issues and efforts to promote economic growth and security”--is another instance of how the Trump Administration is dismantling the Biden Administration's efforts to address the impact of climate change.
Notably, by dis-establishing the committees and infrastructure underpinning the Biden Administration's efforts to address climate change, the current administration is likely having an even greater impact than simply reversing specific climate change-related rules or guidance, as any future administration will now lack the data and key personnel needed to develop and implement future policies addressing climate change. In other words, by attacking the bureaucratic mechanisms that sought to institutionalize a response to the challenges of climate change, the administration will likely achieve more substantive and long-standing results in its de-regulatory efforts.
The US Financial Stability Oversight Council voted on Wednesday to disband two committees focused on climate change’s impact on the economy and financial stability. During a meeting at the US Treasury Department, the council voted to revoke the charters of the Climate-related Financial Risk Committee and Climate-related Financial Risk Advisory Committee, established during the Biden administration. “By rescinding these charters, the council can better focus its attention and resources on core financial stability issues and our efforts to promote economic growth and security, while maintaining safety and soundness and protecting consumers,” Treasury Secretary Scott Bessent said ahead of the vote.
