Delaware County Review

Congressman Troy Balderson has introduced a bill aimed at nullifying guidance issued by the Federal Reserve, Comptroller of the Currency, and the Federal Deposit Insurance Corporation. The guidance, titled "Principles for Climate-Related Financial Risk Management for Large Financial Institutions," is directed at banks and other financial institutions to manage climate-related financial risks linked to their investments and loans.

Critics argue that this guidance could indirectly restrict funding for energy industries, including Ohio's oil and gas sector. Congressman Balderson stated, “This guidance is nothing more than a back-door effort by the Biden-Harris Administration and financial regulators to push their radical ESG agenda.” He expressed concern that federal regulators might pressure banks into avoiding crucial industries like oil and gas by penalizing companies not aligning with the administration’s climate priorities.

Power grid experts have raised concerns about federal policies threatening national energy security. They cite regulations like the Clean Power Plan 2.0 as contributing factors to shutting down reliable power plants amid rising electricity demand. The new ESG rule may lead banks to face regulatory challenges for servicing the oil and gas industry.

In response to these issues, Balderson joined colleagues in passing H.R. 4790 in September. This act aims to reduce what they see as burdensome ESG policies imposed by the Biden-Harris Administration on American businesses while increasing Congressional oversight of federal financial regulatory agencies.

Balderson’s proposed legislation seeks to nullify the interagency guidance and prevent similar future directives from being issued by these federal bodies.