Sense of congress

It is the sense of Congress that— (1) 2024 was the warmest year on record globally and the first calendar year that the average global temperature exceeded 1.5 degrees Celsius above pre-industrial levels; (2) if current trends continue, average global temperatures over the long term are likely to surpass 1.5 degrees Celsius above pre-industrial levels between 2030 and 2050; (3) global temperature rise has already resulted in an increased number of heavy rainstorms, coastal flooding events, heat waves, hurricanes, wildfires, and other extreme events; (4) since 1980— (A) the number of extreme weather events per year that cost the people of the United States more than $1,000,000,000 per event, accounting for inflation, has increased significantly; and (B) the total cost of extreme weather events in the United States has exceeded $2,915,000,000,000; (5) as physical impacts from climate change are manifested across multiple sectors of the economy of the United States— (A) climate-related economic risks will continue to increase; (B) climate-related extreme weather events will disrupt energy and transportation systems in the United States, which will result in more frequent and longer-lasting power outages, fuel shortages, and service disruptions in critical sectors across the economy of the United States; (C) projected increases in extreme heat conditions will lead to decreases in labor productivity in agriculture, construction, and other critical economic sectors; (D) food and livestock production will be impacted in regions that experience increases in heat and drought, and small rural communities will struggle to find the resources needed to adapt to those changes; and (E) sea level rise and more frequent and intense extreme weather events will— (i) increasingly disrupt and damage private property and critical infrastructure; (ii) drastically increase insured and uninsured losses; and (iii) cause supply chain disruptions; (6) advances in energy efficiency and renewable energy technologies, as well as climate policies and shifting societal preferences, will— (A) reduce global demand for fossil fuels; and (B) expose transition risks for fossil fuel companies and investors domestically and globally, and for companies and investors in other energy-intensive industries, which could include trillions of dollars of stranded assets around the world; (7) climate change poses uniquely far-reaching risks to the financial services industry, including with respect to credit, counterparty, and market risks, due to the number of sectors and locations impacted and the potentially irreversible scale of damage; (8) weaknesses in how a financial institution identifies, measures, monitors, and controls for the physical risks and transition risks associated with climate change could adversely affect the safety and soundness of a financial institution; (9) financial institutions must take a consistent approach to assessing climate-related financial risks and incorporating those risks into existing risk management practices, which should be informed by scenario analysis; (10) the Board of Governors conducts annual assessments of the capital adequacy and capital planning practices of the largest and most complex banking organizations (referred to in this section as stress tests) in order to promote a safe, sound, and efficient banking and financial system; (11) as of the date of enactment of this Act— (A) the stress tests conducted by the Board of Governors are not designed to reflect the physical risks or transition risks posed by climate change; and (B) the Board of Governors has conducted 1 pilot climate scenario analysis exercise with only 6 United States banking organizations; (12) the Board of Governors— (A) has stated that economic effects of climate change and the transition to a lower carbon economy pose an emerging risk to the safety and soundness of financial institutions and the financial stability of the United States; (B) has the authority under section 39 of the Federal Deposit Insurance Act (12 U.S.C. 1831p–1) and section 165 of the Financial Stability Act of 2010 (12 U.S.C. 5365) to take into account the potentially systemic impact of climate-related risks on the financial system to preserve the safety and soundness of supervised institutions and the financial stability of the United States; and (C) should develop new analytical tools with longer time horizons to accurately assess and manage the risks described in subparagraph (B); (13) the Climate-Related Market Risk Subcommittee of the Commodity Futures Trading Commission has identified the importance of researching climate-related sub-systemic shocks to financial markets and institutions in particular sectors and regions of the United States; and (14) the Financial Stability Oversight Council likewise identified [c]limate change [a]s an emerging threat to the financial stability of the United States and recommended that members of the Council, including the Board of Governors, take action to strengthen the financial system and make it more resilient to climate-related shocks and vulnerabilities.