The Fed’s willingness to throw a lifeline to oil and gas companies, through its lending programs, exacerbates a risk to financial stability—climate change.
In their latest report, the Center for American Progress outlines the financial state of the oil and gas industry before the coronavirus crisis, explains the structure of the Fed’s emergency lending facilities and the changes to the facilities that benefit oil and gas companies, and provides clear steps the Fed should take to align its emergency lending programs with its other mandates.
The report calls on the Fed to align its emergency lending programs with its financial stability mandate by prohibiting oil and gas companies’ access to the facilities; evaluating and disclosing the risks climate change poses to its entire emergency lending portfolio; and accounting for and limiting the GHG emissions financed through these facilities.
The Center for American Progress is a 501(c)3 independent nonpartisan policy institute that is dedicated to improving the lives of all Americans, through bold, progressive ideas, as well as strong leadership and concerted action. A list of the organization's donors can be found here.