To nullify certain interagency guidance related to climate-related financial risk management for large financial institutions.

This bill would nullify a specific interagency guidance on climate-related financial risk management. Specifically, it voids the final guidance titled “Principles for Climate-Related Financial Risk Management for Large Financial Institutions,” issued by the Federal Reserve Board, the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation on October 24, 2023. It also bars these agencies from issuing any substantially similar guidance in the future. In effect, the bill removes a formal set of expectations for how large financial institutions should manage climate-related financial risks and prevents the agencies from issuing comparable guidance. The underlying purpose appears to be to limit or prevent federal regulatory guidance on climate risk for large banks. If enacted, the federal agencies would not be able to rely on that guidance to shape supervision or risk-management expectations, potentially shifting risk-management accountability back to existing statutes, other regulations, or market-driven practices.