SIFMA, Alongside 10 Trade Associations, Publishes Principles for a U.S. Transition to a Low-Carbon Economy

New York, NY, February 18, 2021 – Today, SIFMA, as a member of the U.S. Climate Finance Working Group, published principles for a U.S. Transition to a Sustainable Low-Carbon Economy.

The financial services industry has been active on climate priorities for decades, helping clients reduce emissions and developing new business models. The principles, developed in coordination with 10 other leading financial services trade associations representing the perspectives of banks, investment banks, insurers, asset managers, investment funds, pension funds and other financial intermediaries, build from that experience to create a useful policy framework for the transition to a low-carbon economy.

“The transition to a low-carbon economy will require concerted and coordinated action by all stakeholders, including tremendous reliance of financial markets to facilitate green equity investment, sector transition financing and liquidity and risk management,” said Kenneth E. Bentsen, Jr., president and CEO of SIFMA.

The shift to low-carbon growth will entail a significant transformation of the U.S. economy, and we believe that a clear long-term policy framework, based on the following Principles, is essential to provide the necessary foundation to finance the transition:

• Set science-based climate policy goals that align with the Paris Agreement
• Increase and strengthen U.S. international engagement
• Provide clear long-term policy signals that foster innovation in financial services
• Price carbon and leverage the power of markets
• Minimize costs and support jobs in the transition
• Foster international harmonization of taxonomies, data standards and metrics
• Promote more robust climate disclosure and international standards
• Ensure climate-related financial regulation is risk-based
• Build capacity on climate risk modeling and scenario analysis
• Strengthen post-disaster recovery, risk mitigation and adaptation

For more on the principles, please see the full paper: “Financing a U.S. Transition to a Sustainable Low-Carbon Economy.”

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About SIFMA:

SIFMA is the leading trade association for broker-dealers, investment banks and asset managers operating in the U.S. and global capital markets. On behalf of our industry’s nearly 1 million employees, we advocate for legislation, regulation and business policy, affecting retail and institutional investors, equity and fixed income markets and related products and services. We serve as an industry coordinating body to promote fair and orderly markets, informed regulatory compliance, and efficient market operations and resiliency. We also provide a forum for industry policy and professional development. SIFMA, with offices in New York and Washington, D.C., is the U.S. regional member of the Global Financial Markets Association (GFMA). For more information, visit http://www.sifma.org.

About The U.S. Climate Finance Working Group:

The U.S. Climate Finance Working Group is comprised of 11 financial services trade associations that have come together to exchange ideas, share knowledge and inform the conversation related to climate and sustainability topics relevant to their respective areas of the financial services industry and the broader corporate sector. Working Group members include American Bankers Association, Bank Policy Institute, CRE Finance Council, Financial Services Forum, Futures Industry Association, International Capital Market Association, Institute of International Bankers, Institute of International Finance, International Swaps and Derivatives Association, Investment Company Institute, and Securities Industry and Financial Markets Association.