The G7 summit kicks off with an unusual diplomatic standoff. The United States has requested the removal of the phrase climate change from the final declaration, a stance that directly clashes with that of France. Paris has commissioned a study from the NGFS, a coalition of central banks, to measure the economic cost of extreme weather events, an entity from which the US Federal Reserve has already withdrawn.
The NGFS and Financial Technology Facing Climate Risk 🌍
The Network for Greening the Financial System develops climate stress models for central banks, integrating satellite data and weather projections into credit risk algorithms. France seeks to quantify the impact of hurricanes and droughts on GDP using these systems. The Fed's withdrawal leaves the US outside this technical development, while the rest of the G7 advances metrics that will link finance and climate.
At the G7, Climate is a Ghost That Goes Unnamed 🌪️
So at the summit, climate change will be like that elephant in the room that everyone sees but no one mentions. While France funds studies to find out how much money they lose from storms, the US prefers to erase the word from the record. The trick is simple: if you don't name it, it doesn't exist. Too bad hurricanes don't read official statements or respect linguistic vetos.