Biden issues sweeping executive order requiring agencies to combat climate change

President Joe Biden is directing federal agencies to identify and address financial risks posed by climate change in a sweeping executive order that could affect much of the government budget and many private industries.

The Thursday order is the latest action by the Biden administration to enlist the financial sector in fighting climate change, both through dedicated efforts to reduce climate-related economic risks and actions to minimize public investment in fossil fuels.

"The global financial sector will be a crucial player, helping channel capital into investments to green our society," Treasury Secretary Janet Yellen told reporters. "But in order for the financial sector to do that, it also must be resilient to the risks that climate change poses."

In April, during Biden’s climate summit, the White House released the first international climate finance plan. As part of that plan, Biden pledged that the United States would double the amount of money it offers to developing countries to help curb climate change within the next three years and move away from financing fossil fuel-intensive projects overseas.