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EO 14030Executive OrderBiden · D Quiet signal

Executive Order 14030

Climate-Related Financial Risk

This executive order directs federal agencies to assess and disclose climate-related financial risks across government programs, financial markets, and pensions. It mandates development of a government-wide climate risk strategy, requires financial regulators to evaluate systemic climate risks, and reinstates flood risk standards for federally funded projects.

Federal Register Open PDF 86 FR 27967

Impact dates

  1. FSOC report to President on agency integration efforts

  2. Labor Secretary report on pension protection actions

  3. Government-wide climate-related financial risk strategy due

  4. Proposed ERISA rule on financial factors in plan investments (earliest possible; 'by September 2021')

Key directives

  • Develop government-wide climate-related financial risk strategy within 120 days
  • FSOC to assess climate risks to financial stability and issue report within 180 days
  • Federal Insurance Office to assess climate issues in insurance supervision
  • Office of Financial Research to assist in data collection and research
  • Labor Secretary to identify ERISA actions and consider proposed rule by September 2021
  • Labor Secretary to report on pension actions within 180 days
  • OMB and NEC to develop recommendations for National Climate Task Force on federal lending
  • Federal Acquisition Regulatory Council to consider amending FAR for supplier disclosure and procurement preferences
  • Agriculture, HUD, and VA Secretaries to consider climate risk in underwriting standards
  • Agency heads to submit procurement integration actions as part of Climate Action Plans
  • OMB to develop methodologies for climate risk in budget projections and publish annual assessments
  • Reinstate Executive Order 13690 (Federal Flood Risk Management Standard)

Who is ordered

Timeline

Immediate

  • Reinstatement of Federal Flood Risk Management Standard (FFRMS) from Executive Order 13690

Near term (90d)

  • Government-wide climate financial risk strategy due (120 days)
  • FSOC report to President on agency integration efforts due (180 days extends beyond 90d)
  • Labor Department report on pension protection actions due (180 days extends beyond 90d)
  • Proposed rule on ERISA investment factors by September 2021

Long term

  • Annual climate risk exposure assessments in President's Budget
  • Net-zero emissions economy by 2050
  • Integration of climate risk into federal procurement via FAR amendments
  • Long-term budget methodology for quantifying climate risk

Risks & tensions

  • Subject to appropriations availability may limit implementation
  • ERISA fiduciary duty changes could face legal challenges from industry groups
  • FAR amendments for supplier disclosure may increase compliance costs for federal contractors
  • Social cost of greenhouse gas emissions in procurement may be contested
  • Vague: 'consider' language in Sections 3(b), 4(b), 5(b), 5(c) reduces binding force
  • Reinstatement of FFRMS may conflict with infrastructure permitting efficiency goals
  • Potential tension between climate risk mitigation and near-term economic competitiveness concerns
Executive Order 14030: Climate-Related Financial Risk · Executive Orders