This past year, the Commodity Futures Trading Commission (CFTC) commissioned a new effort to review the implications of climate change risk to the U.S. financial system. It formed a new subcommittee to evaluate climate-related market risk, and the resulting work has been published in a new report, “Managing Climate Risk in the U.S. Financial System.” A key finding of the committee was that an economy-wide carbon price is “the single most important step to manage climate risk and drive the appropriate allocation of capital.”
The Niskanen Center has long held the view that addressing climate change requires establishing a price on carbon. On Thursday, September 24, we discussed the key findings of the report and paths carbon pricing can take to effectively manage those risks.
- Bob Litterman, Chair, CFTC Climate-Related Market Risk Advisory Subcommittee)
- Rep. Francis Rooney, FL-19th
- Matt Sonnesyn, Vice-President, Infrastructure, Energy, and the Environment, Business Roundtable
- Commissioner Rostin Behnam of CFTC
- Kodiak Hill-Davis (moderator), Director of Government Affairs, Niskanen Center