While the findings of the recent Commodity Futures Trading Commission (CFTC) report on climate change and worldwide financial markets “are ultimately nonbinding recommendations, the report highlights the significant emphasis that must be placed on climate change, as climate-related threats may affect U.S. financial institutions and regulators,” Goldberg Segalla’s Nicholas Fox writes in Law360.
Nick, an associate in the firm’s Toxic Tort and Environmental Law practices, discusses the report, which the CTFC subcommittee on climate-related market risk released on September 9, 2020 to shape regulators’ understanding of how climate change could influence financial markets worldwide. Nick identifies and explains key findings and recommendations in the report and looks ahead to the impact that these might have on U.S. regulations.
“Among the many critical issues addressed in the report, one finding is particularly noteworthy:
Financial markets will only be able to channel resources efficiently to activities that reduce greenhouse gas emissions if an economy-wide price on carbon is in place at a level that reflects the true social cost of those emissions,” Nick writes. “This finding is significant because it recommends a policy framework to incentivize effective reductions of greenhouse gas emissions. While such recommendations appear beneficial to developing innovative and long-lasting production efforts, policymakers must be aware of the impacts of carbon pricing, and ensure that such impacts are appropriately distributed.”
“CFTC Climate Change Report Highlights Costs of Inaction,” Law360, October 9, 2020
Nicholas Fox focuses his practice on counseling and defending clients in all stages of complex toxic tort, environmental, and asbestos litigation. His background includes handling claims related to personal injury, workers’ compensation, and medical malpractice, as well as litigating business, commercial, and construction matters. Additionally, Nick possesses experience in several other areas of law, such as contract disputes, product liability, premises liability, negotiable instruments, Uniform Commercial Code (UCC) Law, business torts, and business fraud.