
The U.S. Treasury Department’s Office of the Comptroller of the Currency (OCC) has officially withdrawn its guidance for banks on managing climate-related financial risks, the financial regulator announced on Monday.
Acting Comptroller of the Currency Rodney Hood stated that the principles outlined in the guidance were unnecessary and overly complex. “The principles providing guidance to banks for climate-related financial risk are overly burdensome and duplicative,” Hood explained. He emphasized his commitment to refining regulatory requirements to ensure they remain effective without being excessive while maintaining the stability and fairness of the federal banking system.
The decision aligns with broader policy shifts under President Donald Trump’s administration. Since taking office on January 20, Trump has taken multiple steps to roll back climate-related policies, including withdrawing the United States from the Paris Agreement, halting global climate finance initiatives, and ending U.S. participation in international climate organizations such as the Intergovernmental Panel on Climate Change (IPCC).
In contrast, climate risk identification had been a key focus of former President Joe Biden’s administration. Many of Biden’s policies sought to address environmental concerns through financial regulation. However, Trump, a Republican, has argued that such regulations place unnecessary burdens on businesses and financial institutions. The move by the OCC signals a continued shift away from climate-focused financial oversight, reflecting the administration’s broader deregulatory agenda.