Federal Housing Finance Agency (FHFA) Director Bill Pulte announced the FHFA would withdraw from the Network of Central Banks and Supervisors for Greening the Financial System (NGFS) on Sept. 19.
The NGFS is a coalition of 114 central banks and financial supervisors, formed in 2017 to promote green finance and provide a framework for how central banks can help to address climate change, in accordance with goals described in the Paris Agreement.
The U.S. announced its intent to exit the Paris Agreement in January, which will take effect one year from that date, on Jan. 20, 2026. This will mark the country’s second time withdrawing from the agreement, having previously done so near the end of President Donald Trump’s first term in November 2020, only for it to rejoin in February 2021 under then-President Joe Biden.
With the move, which Pulte announced on X (formerly Twitter), the agency joined several other agencies in withdrawing from NGFS involvement.
The first to withdraw was the Federal Reserve on Jan. 17, asserting the network had broadened its scope to encompass a wider range of issues than covered by the Fed’s statutory mandate. Within a month, the Federal Deposit Insurance Corp. (FDIC), the U.S. Treasury Department’s Federal Insurance Office (FIO) and the Comptroller of the Currency had all followed suit, citing similar reasoning.
At the time of his agency’s withdrawal, Treasury Secretary Scott Bessent characterized the move as part of its implementation of Trump’s executive orders, titled “Putting America First in International Environmental Agreements” and “Unleashing American Energy.”
“NGFS’s initiatives are inconsistent with this administration’s priorities to grow the U.S. economy and American jobs, and NGFS’s role diverges from the traditional technical and coordinating roles of other international fora,” Bessent said in a press release. “Important parts of NGFS’s scope, including on monetary policy frameworks, go beyond FIO’s core duties. FIO will continue to engage with state insurance regulators and other stakeholders to promote U.S. interests in international insurance engagements.”
The Trump administration has characterized the country’s involvement in climate-related initiatives as a source of regulatory overreach that unnecessarily inhibits economic growth while providing limited direct benefits to American workers.
Supporters of the NGFS have argued statutory mandates pertaining to federal financial agencies’ obligations to preserve the safety and soundness the U.S. banking system and meet the needs of their communities are at odds with arguments in favor of withdrawal.