'Good riddance': Fed clash over scrapping climate risk guidance; Nearly 1 billion people exposed to climate shocks: UN

'Good riddance': Fed clash over scrapping climate risk guidance; Nearly 1 billion people exposed to climate shocks: UN
by AFP Staff Writers
Washington Oct 17, 2025
Rumbling discontent over the US Federal Reserve's guidance on climate change policies spilled into the open Thursday, when the central bank became the latest regulatory agency to scrap climate-related guidance. In a joint statement, the Fed and the Federal Deposit Insurance Corporation (FDIC) said they "do not believe principles for managing climate-related financial risk are necessary." This, they added, was because their "existing safety and soundness standards require all supervised institutions to have effective risk management." The Office of the Comptroller of the Currency (OCC), which was also listed on the joint statement, withdrew its guidance earlier this year. Fed governor Christopher Waller used unusually blunt language to voice his approval for the move to scrap guidance for how big banks should manage their climate risks. "Good riddance," he wrote in a two-word statement accompanying the Fed's decision to bin the 2023 guidelines -- a marked contrast to the lengthier statements of his colleagues. In total, five of the Fed's seven members voted in favor of repealing the guidance, including Fed chair Jerome Powell, and the bank's new vice chair for supervision Michelle Bowman. "At a time when confidence in public institutions is waning, the Federal Reserve should strive to demonstrate beyond doubt that it executes its duties in an independent manner, focusing on its statutory obligations," Bowman said in a statement, explaining her decision. Bowman and Waller were both nominated to the Fed by President Donald Trump during his previous term in office, and are reportedly on Treasury Secretary Scott Bessent's five-person shortlist to run the bank once Powell steps down next year. Among the two Fed board members who did not vote in favor, Lisa Cook abstained, while Michael Barr voted against the measure. "Rescinding the principles is short-sighted and will make the financial system riskier even as climate-related financial risks grow," Barr said in a statement. Nearly 900 mn poor people exposed to climate shocks, UN warns
United Nations, United States (AFP) Oct 17, 2025 - Nearly 80 percent of the world's poorest, or about 900 million people, are directly exposed to climate hazards exacerbated by global warming, bearing a "double and deeply unequal burden," the United Nations warned Friday.

"No one is immune to the increasingly frequent and stronger climate change effects like droughts, floods, heat waves, and air pollution, but it's the poorest among us who are facing the harshest impact," Haoliang Xu, acting administrator of the United Nations Development Programme, told AFP in a statement.

COP30, the UN climate summit in Brazil in November, "is the moment for world leaders to look at climate action as action against poverty," he added.

According to an annual study published by the UNDP together with the Oxford Poverty and Human Development Initiative, 1.1 billion people, or about 18 percent of the 6.3 billion in 109 countries analyzed, live in "acute multidimensional" poverty, based on factors like infant mortality and access to housing, sanitation, electricity and education.

Half of those people are minors.

One example of such extreme deprivation cited in the report is the case of Ricardo, a member of the Guarani Indigenous community living outside Santa Cruz de la Sierra, Bolivia's largest city.

Ricardo, who earns a meager income as a day laborer, shares his small single-family house with 18 other people, including his three children, parents and other extended family.

The house has only one bathroom, a wood- and coal-fired kitchen, and none of the children are in school.

"Their lives reflect the multidimensional realities of poverty," the report said.

- Prioritizing 'people and the planet' -

Two regions particularly affected by such poverty are sub-Saharan Africa, and South Asia -- and they are also highly vulnerable to the impacts of climate change.

The report highlights the connection between poverty and exposure to four environmental risks: extreme heat, drought, floods, and air pollution.

"Impoverished households are especially susceptible to climate shocks as many depend on highly vulnerable sectors such as agriculture and informal labor," the report said.

"When hazards overlap or strike repeatedly, they compound existing deprivations."

As a result, 887 million people, or nearly 79 percent of these poor populations, are directly exposed to at least one of these threats, with 608 million people suffering from extreme heat, 577 million affected by pollution, 465 million by floods, and 207 million by drought.

Roughly 651 million are exposed to at least two of the risks, 309 million to three or four risks, and 11 million poor people have already experienced all four in a single year.

"Concurrent poverty and climate hazards are clearly a global issue," the report said.

And the increase in extreme weather events threatens development progress.

While South Asia has made progress in fighting poverty, 99.1 percent of its poor population exposed to at least one climate hazard.

The region "must once again chart a new path forward, one that balances determined poverty reduction with innovative climate action," the report says.

With Earth's surface rapidly getting warmer, the situation is likely to worsen further and experts warn that today's poorest countries will be hardest hit by rising temperatures.

"Responding to overlapping risks requires prioritizing both people and the planet, and above all, moving from recognition to rapid action," the report said.