Climate change poses serious emerging risks to U.S. financial stability and may exacerbate vulnerabilities in the financial system that are unrelated to climate change.

Financial regulators have existing authority to begin to incorporate climate-related risk management into their regulatory and supervisory frameworks in areas of oversight of systemic financial risk, risk management of  particular markets and financial institutions, disclosure and investor protection, and safeguarding of financial  sector utilities.

Initial efforts may be constrained by barriers, including available data, analytical tools, and the quality of disclosure.

Policy and regulatory choices should be flexible, open-ended, and adaptable to new information based on experience, research, and iterative dialogue with the private sector.

Establishing an economy-wide price on carbon emissions is fundamental to decisively addressing climate change though beyond the remit of financial regulators.

A coordinated national response is necessary and U.S. participation in international initiatives should be more robust.