The U.S. Treasury Department on Friday announced it is withdrawing from a coalition of global central banks and supervisors focused on climate finance, citing President Donald Trump’s executive orders prioritizing American energy and jobs.
The Federal Insurance Office, part of the Treasury Department, formally notified the Network of Central Banks and Supervisors for Greening the Financial System (NGFS) of the U.S. withdrawal, according to a Treasury press release.
The NGFS was established to coordinate climate-related financial policies and advance the goals of the Paris Agreement. The United States had already exited that accord, and officials said NGFS activities do not align with the Trump administration’s economic priorities.
“Withdrawal from NGFS is one part of implementing President Trump’s Executive Orders Putting America First in International Environmental Agreements and Unleashing American Energy,” the department said.
Federal Housing Finance Agency Director William Pulte also confirmed the decision in a post on X, declaring that the Federal Housing Finance Agency is pulling back from NGFS membership effective immediately.
Treasury officials argued that the group’s scope exceeds its original mission and intrudes into areas outside its technical and coordinating role. The department noted that NGFS work on monetary policy frameworks and related initiatives extended beyond the core duties of U.S. financial regulators.
Administration officials framed the move as a step toward protecting domestic industries and jobs. “NGFS’ initiatives are inconsistent with this Administration’s priorities to grow the U.S. economy and American jobs,” the statement said.
Despite leaving the international network, the Federal Insurance Office pledged to maintain engagement with state insurance regulators and private-sector stakeholders to safeguard U.S. interests in global insurance discussions.
The decision underscores a broader shift in U.S. policy away from multilateral climate finance efforts and toward domestic economic development. Supporters argue that the move reduces regulatory overreach and keeps American energy and financial policy under national control.
At the same time, the withdrawal places the United States outside a coalition that many other global financial institutions consider central to addressing climate-related risks. The NGFS comprises dozens of central banks and supervisors worldwide, working to integrate environmental factors into financial oversight.
The U.S. pullout reflects the Trump administration’s stance that such efforts impose unnecessary burdens on economic growth while offering limited direct benefits to American workers.
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