Climate change gets first mention in G20 finance communique of Trump era: sources

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U.S. officials have resisted naming climate change as an economic risk since Trump was elected in 2016

. One of his first acts in office was to announce Washington’s withdrawal from the Paris climate accord.

“Mobilizing sustainable finance and strengthening financial inclusion are important for global growth and stability. The FSB is examining the financial stability implications of climate change,” the communique said.One of the G20 sources said: “In the end it’s not in the first paragraph but in the ninth, very discreet and indirect, but still the first time the word finds its way into a communique since this U.S. administration.

A report issued last week forecast the world’s financial services sector risks losses of up to $1 trillion if it fails to respond quickly to climate change and is hit by policy shifts such as the introduction of a carbon tax. It estimated that a typical climate-related natural disaster reduced growth by an average of 0.4 percentage points in the affected country the year it occurred.

 

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