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64 Orgs Write to Fed Chair Powell Calling for More Action on Climate Change
New report shows Fed failing to address climate change, NGO’s join 25 members of Congress who sent companion letter.
WASHINGTON
Today, 64 organizations sent a letter to Federal Reserve Chairman Powell, urging him to take action on climate-related risk and investment, saying "there is an urgent need for more significant financial regulatory responses to the climate crisis." This letter comes as the new Green Central Banking Scorecard from PositiveMoney gives the Federal Reserve a D-, rating it among the bottom tier of G-20 central banks for its efforts to address climate change.
A group of 25 Members of Congress, led by Rep. Mondaire Jones (NY-17) and Rep. Rashida Tlaib (MI-13), sent a companion letter earlier today, saying "We write to share our concern over the limited action of the Federal Reserve ('Fed') to prepare our financial institutions and broader economy for the risk and destabilizing impact of climate change." Their full letter is available online HERE.
In the letter, the climate and financial reform organizations told Powell, "The Federal Reserve Board has a crucial role to play in protecting the economy and the public from material risks, including those from climate change, as you highlighted in your November 2020 press conference. The threats posed by climate change, as outlined in the Fed's most recent financial stability report, are significant and, to quote Governor Lael Brainard, 'one of the major challenges of our time.' We urge you to move more rapidly and more boldly with specific actions in supervision, micro and macroprudential regulation, monetary policy, the Board's balance sheet, and community development."
"It's unthinkable that banks are still financing new fossil fuel development when we are crystal clear that we are on a path to climate chaos," said Tracey Lewis, Senior Policy Analyst, 350.org. "The Federal Reserve must do its job, steering the economy away from disaster by ending fossil fuel finance."
Public Citizen released a supplement to the Green Central Banking Scorecard that gives the context for the Federal Reserve's D- grade and identifies what the Fed can do on climate change.
"This abysmal grade is a warning call - the Federal Reserve is falling behind on addressing the threats from climate change - but with swift action, the U.S. can jump to the head of the class," said Yevgeny Shrago, policy counsel for Public Citizen's Climate Program. "The Fed has the tools to support the ongoing transition to a clean energy economy, but so far it's been all talk and no walk. Together, we're urging Chairman Powell to take bold action and protect our economy from climate risk."
Last week, a new report, Banking on Climate Chaos, showed that the largest banks in the world have continued to invest trillions of dollars in fossil fuels since the Paris Agreement, underscoring the need for urgent action from the Federal Reserve and other financial regulators.
"Since the Paris Climate Agreement, U.S. banks are the world's four biggest lenders and underwriters to the fossil fuel industry, and six of the top 15, to the tune of $1.2 trillion over the past five years," said Jason Opena Disterhoft, Climate and Energy Senior Campaigner at Rainforest Action Network. "Wall Street is driving the climate crisis, and therefore threatening the safety, soundness and stability of the financial system. It's well past time for the Federal Reserve to stop sitting on its hands. The Fed must fulfill its mandate by using the full range of its tools to stop Wall Street fueling climate risk."
The NGO letter to Federal Reserve Chairman Powell is online HERE, and its full text and list of signatories are below.
Public Citizen is a nonprofit consumer advocacy organization that champions the public interest in the halls of power. We defend democracy, resist corporate power and work to ensure that government works for the people - not for big corporations. Founded in 1971, we now have 500,000 members and supporters throughout the country.
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Putin Shifts Nuclear Posture as Ukraine Fires Long-Range Missiles into Russia
The "window to avert catastrophic miscalculation is now that much narrower," warned one expert after Biden lifted restrictions on U.S.-supplied weapons.
Nov 19, 2024
Fresh fears of escalation were expressed Tuesday after Ukraine struck territory deep inside of Russia using long-range missiles for the first time within hours of the Kremlin announcing changes to its nuclear weapons posture.
In the pre-dawn hours, Ukraine reportedlyused U.S.-supplied ATACMS missiles to attack an ammunition depot in the Bryansk region of Russia, located less than 200 miles north of a small strip of Russian territory currently held by Ukraine thanks to an incursion mounted in summer 2024. Russian forces are working to push back Ukrainian forces in the area.
The Russian Defense Ministry confirmed that there was an attack. "At 3:25 a.m. this morning the enemy struck a site on the territory of the Bryansk Region with six ballistic missiles. According to confirmed data, US-made ATACMS tactical missiles were used. As a result of an anti-missile battle, five missiles were shot down and one was damaged by crews of S-400 and Pantsir missile defense systems," the ministry said in statement, according to the Russian government-run news agency TASS.
Russian Foreign Minister Sergey Lavrov said that Russia would respond "accordingly."
The attack comes on the 1,000th day of Russia's full-scale invasion of Ukraine that began in 2022, and mere days after President Joe Biden green lit Ukraine's use of these specific weapons – in what The New York Times characterized as a "major shift of American foreign policy" and one foreign policy expert called a "needlessly escalatory step."
Ukraine President Vlodomyr Zelenskyy has long sought permission from the U.S. government to use Army Tactical Missile Systems, or ATACMS, according to the Financial Times. Zelenskyy has also asked for the lifting of restrictions on other long-range weapons provided by NATO countries – including Storm Shadow missiles from the United Kingdom. The U.S. began supplying the Lockheed Martin-produced ATACMS earlier this year, according to Defense One, but imposed restrictions on their use due to the escalatory implications of Ukraine using them to strike targets far inside Russian territory.
Also on Tuesday, Russian President Vladimir Putin signed a decree implementing changes to the country's nuclear doctrine that lower the threshold for potential nuclear weapons use.
Under the updated doctrine, "aggression against the Russian Federation and (or) its allies by any nonnuclear state with the participation or support of a nuclear state is considered as their joint attack," according to the The New York Times.
"The big picture is that Russia is lowering the threshold for a nuclear strike in response to a possible conventional attack," Alexander Graef, a senior researcher at the Institute for Peace Research and Security Policy at the University of Hamburg, toldReuters.
"Russia's new nuclear doctrine means NATO missiles fired against our country could be deemed an attack by the bloc on Russia. Russia could retaliate with WMD against Kiev and key NATO facilities, wherever they're located. That means World War III," wrote former Russian President Dmitry Medvedev on X early Tuesday.
U.S. intelligence analysts have also concluded that granting Ukraine the ability to use U.S., French and U.K.-supplied long-range missiles could prompt forceful retaliation by Russia, but that the move would likely not fundamentally alter the course of the war.
Mark Episkopos, a Eurasia research fellow at the Quincy Institute for Responsible Statecraft, warned Monday that use of such weapons by the Ukraine military would likely not impact the battlefield advantages of either side in the immediate term but puts "Russia and NATO one step closer to a direct confrontation."
"With such weapons now in play," added Episkopos, "the window to avert catastrophic miscalculation is now that much narrower."
Meanwhile, in a Tuesday statement on X, the International Campaign to Abolish Nuclear Weapons (ICAN), said it was "dangerously complacent" for Western politicians and pundits to dismiss Putin's shift as some kind of bluff.
"We can’t know if Putin—or any leader of a nuclear-armed country—will use nuclear weapons at any time," argued ICAN. "No matter the size of a nuclear weapon any use would escalate rapidly into a nuclear war devastating the world. The stakes are simply too high to assume Putin is bluffing."
ICAN, the 2017 winner of the Nobel Peace Prize, said that the "way to prevent nuclear weapons from ever being used again is to eliminate them, and treaties like the Treaty on the Prohibition of Nuclear Weapons are here for that."
The Biden administration's rollback of restrictions comes after thousands of North Korean troops have joined the Russian military effort, and as President-elect Donald Trump's January inauguration approaches. Trump has said he will seek a swift end to the war and criticized the amount of aid the United States has provided Ukraine.
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Tens of Thousands March for Indigenous Rights at New Zealand Parliament
The Māori Party co-leader called Parliament's consideration of a bill that would reinterpret a key treaty "the deepest betrayal that we've ever had from a National government."
Nov 19, 2024
An estimated 55,000 people marched outside New Zealand's Parliament in Wellington on Tuesday to protest legislation that critics argue would dilute Indigenous rights by reinterpreting a treaty signed in 1840 by the British Crown and more than 500 Māori chiefs.
The peaceful demonstration was the culmination of a nine-day march, or hīkoi, that began at Cape Reinga, the northernmost point of New Zealand and the most spiritually significant place in the country for Māori, who are about 20% of the 5.3 million-person population.
Reutersreported that some "dressed in traditional attire with feathered headgear and cloaks and carried traditional Māori weapons, while others wore T-shirts emblazoned with Toitu te Tiriti (Honor the Treaty). Hundreds carried the Māori national flag."
"We have gathered in our tens of thousands, not just Māori, but others who support an inclusive, diverse, equal partnership that our country has been a world leader in pioneering."
The Treaty Principles Bill targeting the Treaty of Waitangi, or Te Tiriti o Waitangi, is being pushed by the ACT New Zealand party, a junior partner in the center-right coalition government, which also includes the National Party and New Zealand First (NZF).
Although the National and NZF have said that they are only supporting the legislation for the first of the three readings—meaning it is highly unlikely to pass—Debbie Ngarewa-Packer, co-leader of the Māori Party, or Te Pāti Māori, told the podcastThe Front Page that even allowing it to be tabled is a "deep shame."
"We deserve better than to be used as political pawns," Ngarewa-Packer argued. "The fact that National has decided that we were tradeable and the mana of the coalition agreement was so much more important than the mana of Te Tiriti and tāngata is the deepest betrayal that we've ever had from a National government."
Pointing to U.S. President-elect Donald Trump, who won earlier this month after being ousted in the previous cycle, Ngarewa-Packer added, "We're a country that had the first women's vote, we have always punched above our weight in the anti-nuclear space, the anti-discrimination space, and here we are in 2024 with the sort of Trump-like culture coming into our politics."
The New York Timesnoted Tuesday that "a year before American voters' anger over the cost of living helped Donald J. Trump win the presidency, similar sentiments in New Zealand thrust in the nation's most conservative government in decades. Now, New Zealand bears little resemblance to the country recently led by Jacinda Ardern, whose brand of compassionate, progressive politics made her a global symbol of anti-Trump liberalism."
As the newspaper detailed:
The new government—a coalition of the main center-right party and two smaller, more populist ones—has reversed many of Ms. Ardern's policies. It has rescinded a world-leading ban on smoking for future generations, repealed rules designed to address climate change, and put a former arms industry lobbyist in charge of overhauling the nation's strict gun laws.
And in a country that has been celebrated for elevating the status of Māori, its Indigenous people, it has challenged their rights and the prominence of their culture and language in public life, driving a wedge into New Zealand society and setting off waves of protests.
Parliament was briefly suspended last Thursday after Maori members staged a traditional dance called a haka to disrupt the first reading. The haka—which garnered global attention—was started by Member of Parliament Hana-Rawhiti Maipi-Clarke, who tore up a copy of the bill.
Speaking to the Wellington crowd on Tuesday, Maipi-Clarke—who at 22 is the country's youngest MP—said, "We are the sovereign people of this land and the world is watching us here, not because of the system, not because of the rules, but because we haka."
Other participants in the Tuesday action included the Māori Queen, Ngā Wai Hono i te Pō, and Te Pāti Māori Co-Leader Rawiri Waititi, who led the crowd in a chant to "kill the bill."
According toThe Northern Advocate, ACT Leader David Seymour, "the architect of the Treaty Principles Bill, was booed back inside the Beehive today by the tens of thousands protesting against his controversial bill."
While Seymour has framed the bill as an effort to end division and ensure equal rights for all, critics like Ella Henry, professor of Māori Entrepreneurship at Auckland University of Technology, warn that it is an effort to roll back New Zealand's previous progress in terms of relations with Indigenous people.
"So we have gathered in our tens of thousands, not just Māori, but others who support an inclusive, diverse, equal partnership that our country has been a world leader in pioneering," Henry toldSBS News. "Those are the people who are marching."
Hayley Komene, who is from the Ngāti Kauwhata tribe, similarly toldThe Guardian that there was a "real strength and pride" at the march, and "there are people from lots of different backgrounds here for the same reason—it's beautiful."
Komene also slammed the government's Māori policies as "absolutely ridiculous" and stressed that "Te Tiriti is a constitutional document of our country."
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G20 Leaders Reach 'Landmark Commitment' for Global Tax on Ultrarich
"Now is the time to turn words into action and launch an inclusive international negotiation, extending beyond G20 countries, on the reform of the taxation of the superrich," said economist Gabriel Zucman.
Nov 19, 2024
Acknowledging that "the era of the billionaire" is still in full swing across the globe, economic justice advocates on Tuesday applauded a "landmark commitment" by G20 leaders at the group's annual summit in Rio de Janeiro, where delegates agreed to cooperate on efforts to ensure the richest households in the world are taxed fairly.
The final communiqué out of the G20 Summit includes a commitment from 19 countries, the European Union, and the African Union, to "engage cooperatively to ensure that ultra-high-net-worth individuals are effectively taxed."
"Cooperation could involve exchanging best practices, encouraging debates around tax principles, and devising anti-avoidance mechanisms, including addressing potentially harmful tax practices," reads the communiqué. "We look forward to continuing to discuss these issues in the G20 and other relevant forums, counting on the technical inputs of relevant international organizations, academia, and experts."
The final text was brokered by Brazilian President Luiz Inácio Lula da Silva, commonly known as Lula, and the E.U. Tax Observatory noted that Argentina's right-wing president, Javier Milei, "failed to convince other G20 countries to block the communiqué."
The meeting took place less than a year after economist Gabriel Zucman, director of the E.U. Tax Observatory, published a report titledA Blueprint for a Coordinated Minimum Effective Taxation Standard for Ultra-High-Net-Worth Individuals, which informed G20 finance discussions leading up to the summit.
"A minimum tax on billionaires equal to 2% of their wealth would raise $200-$250 billion per year globally from about 3,000 taxpayers; extending the tax to centimillionaires would add $100-$140 billion," said Zucman, a leading expert on tax avoidance and reducing inequality, in the report.
Billionaires' effective tax rate is currently equivalent to 0.3% of their wealth, requiring them to pay a far lower rate than middle-class taxpayers.
Zucman hailed the agreement out of the summit in Rio de Janeiro as a "historic decision" and said concrete action by the world's governments must follow.
"Now is the time to turn words into action and launch an inclusive international negotiation, extending beyond G20 countries, on the reform of the taxation of the superrich," said Zucman.
Along with Milei, the Biden administration pushed back this year as the G20 weighed Zucman's tax proposal. Treasury Secretary Janet Yellen toldThe Wall Street Journal in May that the "notion of some common global arrangement for taxing billionaires with proceeds redistributed in some way—we're not supportive of a process to try to achieve that. That's something we can't sign on to."
As Common Dreamsreported Tuesday, the U.S. is one of eight countries that are contributing to an international loss of $492 billion in taxes each year as multinational corporations and ultrawealthy individuals underpay. The eight countries—which also include Australia, Canada, Israel, Japan, New Zealand, South Korea, and the U.K.—oppose a United Nations tax convention.
Jenny Ricks, general secretary of the Fight Inequality Alliance, said that particularly with U.S. President-elect Donald Trump set to take office in January, "we live in the era of the billionaire."
"We need to move to the era of the 99%," said Ricks. "This shift won't come easily. The U.S. elections have shown how the superrich can use their wealth and power to influence policies and shape the outcomes of elections. Leaders like Trump in the U.S. and Javier Milei in Argentina are actively working to derail international cooperation, while politicians around the world fail to oppose the vested interests that continue to benefit from such unequal societies."
"We will fight harder than ever before to transform the rhetoric on taxing the rich into a global reality," she added. "We need more equal societies in which the richest no longer hold all the power and wealth, with devastating consequences. We need to redistribute the wealth of the superrich to fund vital public services and the response to climate change. Such a transformation is essential to creating the alternative we seek to today's broken system."
Viviana Santiago, executive director of Oxfam Brazil, applauded Lula's government and the G20 leaders for responding "to people's demands worldwide to tackle extreme inequality, hunger, and climate breakdown, and particularly for rallying action on taxing the superrich."
"G20 governments deserve praise for their groundbreaking commitment to cooperate on taxing the world's superrich. But we won't rest until this delivers real change for people and planet," said Santiago, adding that governments now ostensibly supporting a tax on billionaires' wealth should also "be championing a $5 trillion climate finance goal at COP29," the U.N. summit set to wrap up in Baku, Azerbaijan this week.
"How can they argue that climate justice is unaffordable with a deal to raise trillions of dollars by taxing the superrich on the table?" she asked.
Quentin Parrinello, policy director at the E.U. Tax Observatory, asserted that negotiations on the tax proposal "must now extend to a much more inclusive space than the G20."
"Such reforms don't happen overnight, but time is pressing," said Parrinello. "This agenda is even more important today, with the risk of geopolitical fragmentation and looming wealth concentration fueling inequality and undermining democracy."
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