A resolution recognizing that climate change portends a cascade of financial market collapses that would destabilize the national and global economies.
- Bill Number
- S.Res. 557
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 1
- Policy Area
- Finance and Financial Sector
- Status
- Introduced
- Latest Action
- 2025-12-17: Referred to the Committee on Banking, Housing, and Urban Affairs.
- Last Updated
- 2026-01-06T18:54:35Z
AI-Generated Summary
Purpose
This Senate Resolution (S. Res. 557) aims to formally acknowledge the severe economic risks posed by unchecked climate change, particularly its potential to trigger financial market collapses and destabilize national and global economies. It emphasizes the need for an early, orderly transition to a low-carbon economy to mitigate these risks.
Key Provisions
- Recognition of Climate Impacts: The resolution highlights how climate change worsens extreme weather events, disasters, wildfires, and related economic losses, citing specific examples such as $165 billion in U.S. losses from extreme weather in 2022.
- Financial and Insurance Risks: It notes that increasing unaffordability and unavailability of insurance due to frequent disasters could destabilize mortgage and property markets, potentially leading to a $25 trillion decline in global residential property values.
- Long-Term Economic Projections: References projections that unchecked climate change could cost the global economy $178 trillion in net present value from 2021 to 2070, and reduce worldwide per capita gross domestic product (GDP—a measure of average economic output per person) by 10-20% within three decades.
- Expert Warnings: Cites assessments from national banks, the international Financial Stability Board (a group monitoring global financial risks), and other experts that climate change creates ongoing structural risks to the financial system.
- Call for Transition: Stresses that experts and banks recommend an organized shift to a low-carbon economy to avoid sudden, disorderly disruptions.
- Senate Statement: The core resolution states that the Senate recognizes unchecked climate change as posing severe risks to national and global economies.
Significant Changes to Existing Law
This is a non-binding resolution, not a law, so it introduces no changes to existing statutes or regulations. It serves as an expression of the Senate's position rather than enforceable policy.
Potential Impacts
- On Government Agencies: Could encourage agencies like the Federal Reserve or Treasury Department to prioritize climate-related financial risks in oversight and planning, though it has no direct mandate.
- On Citizens: Raises awareness of how climate-driven economic instability might affect insurance availability, property values, and overall financial security, potentially influencing public support for climate policies.
- On International Relations: Highlights global economic interdependence, which may strengthen U.S. advocacy for international climate agreements and cooperation on financial stability, but without binding commitments.
Main Stakeholders Affected
- Financial Institutions and Banks: Directly implicated as facing structural risks; they are urged to adapt to climate realities.
- Governments and Policymakers: U.S. Senate and federal agencies involved in economic and environmental policy; international bodies like the Financial Stability Board.
- Citizens and Businesses: Particularly those in insurance, real estate, and sectors vulnerable to weather disasters, who could face higher costs or market instability.
- Global Economy Participants: Nations and investors worldwide, given the resolution's focus on interconnected financial systems.
Notable Legal, Constitutional, or Political Implications
- Legal: As a simple resolution, it requires only a majority vote in the Senate and does not need House or presidential approval, limiting its legal weight but allowing it to signal intent for future binding legislation.
- Constitutional: Aligns with Congress's role in expressing policy views under Article I, without infringing on executive powers over foreign affairs or regulation.
- Political: Represents a bipartisan or cross-ideological statement (introduced by a mix of senators) on climate-economy links, potentially building momentum for related bills on financial regulation or green transitions, while avoiding partisan controversy by focusing on economic rather than environmental rhetoric alone.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Sen. Whitehouse, Sheldon [D-RI]
Cosponsors (8)
Sen. Merkley, Jeff [D-OR], Sen. Schatz, Brian [D-HI], Sen. Markey, Edward J. [D-MA], Sen. Van Hollen, Chris [D-MD], Sen. Duckworth, Tammy [D-IL], Sen. Padilla, Alex [D-CA], Sen. Welch, Peter [D-VT], Sen. Blunt Rochester, Lisa [D-DE]
Recent Actions
- 2025-12-17: Referred to the Committee on Banking, Housing, and Urban Affairs.
- 2025-12-17: Introduced in Senate
Bill Versions
- Recognizing that climate change portends a cascade of financial market collapses that would destabilize the national and global economies. — issued 2025-12-17 — PDF (2 pages)