The US Federal Reserve on Tuesday joined other central banks in a global group aimed at fighting climate change and addressing environmental risk to the financial system.

The Fed has been working for a year with the Network of Central Banks and Supervisors for Greening the Financial System (NGFS), but now has joined the Bank of England, European Central Bank, Bank of Mexico and others as a formal member.

The network was built as part of the Paris climate accord to "to enhance the role of the financial system to manage risks and to mobilize capital for green and low-carbon investments," according to the website.

With the Fed and seven other new members, the NGFS has grown from eight founding members three years ago, to 83 members and 13 observers currently.

"As we develop our understanding of how best to assess the impact of climate change on the financial system, we look forward to continuing and deepening our discussions with our NGFS colleagues from around the world," Federal Reserve Chair Jerome Powell said in a statement.

NGFS Chair Frank Elderson said while the group has made progress in the past three years "our job is far from finished."

"We must still press on with our collective efforts to ensure we reach net-zero emissions and address the risks the climate crisis poses to the financial system," Elderson said in a statement.

Accounting for carbon footprint changes view of human progress: UN agency
United Nations, United States (AFP) Dec 15, 2020 - Dependence on fossil fuels has an impact on the assessment of human progress, according to a report published Tuesday by the United Nations Development Programme that takes carbon footprints into account for the first time.

The report presents world leaders with a choice: take "bold steps to reduce the immense pressure that is being exerted on the environment and the natural world," or risk stalling humanity's progress, said a UNDP statement summarizing the findings.

The evaluation of countries' standard of living, progress in health and education, are modified by including criteria on carbon dioxide emissions and carbon footprints, the UN agency said.

As a result, some 50 countries have left the group of nations with high human development, reflecting their dependence on fossil fuels and their carbon footprint.

At the same time, countries such as Costa Rica, Moldova and Panama have moved up at least 30 places, according to the report. This is proof that "lighter pressure on the planet is possible," the UNDP said.

"By tackling inequality, capitalizing on innovation and working with nature, human development could take a transformational step forward to support societies and the planet together," said Pedro Conceicao, a UNDP director and the principal author of the report.

UNDP administrator Achim Steiner noted that "humans wield more power over the planet than ever before.

"In the wake of COVID-19, recordbreaking temperatures and spiraling inequality, it is time to use that power to redefine what we mean by progress, where our carbon and consumption footprints are no longer hidden," he said.

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