Lucas Statement on Biden’s Climate Financial Risk Executive Order

May 21, 2021
Press Release

Cheyenne, OK – Congressman Frank Lucas (OK-03) released the following statement today in response to President Biden’s executive order directing Treasury Secretary Janet Yellen, head of the Financial Stability Oversight Council (FSOC), National Economic Council Director Brian Deese, and National Climate Adviser Gina McCarthy to issue a report on climate-related financial risk:

“The Biden Administration’s executive order creating a strategy to quantify the risks climate change poses to both public and private financial assets is both irresponsible and an overstep of the Executive Branch and the agencies who serve our nation’s financial system. The regulation sends a clear message to businesses and consumers alike that President Biden intends to influence bank lending in certain sectors of our economy, dramatically effecting the cost and availability of capital, increasing costs for Americans, and stifling market-driven climate solutions.

“As Chairman Jerome Powell has previously acknowledged, ‘society’s broad response to climate change is for others to decide—in particular, elected leaders.’ America’s financial institutions are already addressing climate-related risks. Instead of financial regulators who lack the know-how or an Administration who vows to put their thumb on the scale of businesses and industries serving the American people, it should be Congress and innovation that moves our country towards a cleaner future.”

Earlier this week, Lucas cautioned financial regulators at a House Committee on Financial Services hearing about the impact climate-related regulations would have on consumers.

In March, Lucas questioned both Federal Reserve Chairman Jerome Powell and Treasury Secretary Janet Yellen about the Federal Reserve’s and Treasury’s actions addressing climate change, voicing his concerns that financial regulation intended to push environmental policy objectives could have adverse impacts on agriculture and energy industries.