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1 1 (March 18, 2021)

handle is hein.amenin/aeiaduc0001 and id is 1 raw text is: 

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                                                                   ENTEF.RPRSE





Statement   before  the  Committee on Banking, Housing, and Urban
Affairs, U.S. Senate

Hearing   On  21st Century  Economy: Protecting the Financial System
from  Risks  Associated  with  Climate  Change

March  18, 2021


Climate Risk and the Distortion of

U.S. Financial Markets


Efforts   by  the Federal Reserve and Financial Institutions to
Predict   Climate Phenomena and Their Impacts Would Be
Politicized  and  Futile

Benjamin   Zycher
Resident Scholar, American  Enterprise Institute

      Thank you, Chairman Brown and Ranking Member Toomey, for this opportunity to offer
my views on the topic of the financial system and anthropogenic climate change, one now
receiving substantial attention from policymakers and many interested observers. The Statement
below makes a number of observations that I hope will prove of interest to this Committee. I begin
with a summary of my arguments, and then proceed to discuss them in more detail in the ensuing
sections:

        I.  Climate Uncertainties and Choices Among Crucial Assumptions.
        II. The Evidence on Climate Phenomena and the Effects of Climate Policies in the
            EPA Climate Model.
      III.  Observations on the Materiality of Climate Risks.
      IV.   Additional Observations and Conclusions.






The American Enterprise Institute (AEI) is a nonpartisan, nonprofit, 501(c)(3) educational organization and
does not take institutional positions on any issues. The views expressed in this testimony are those of the
author.

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