WASHINGTON—Soon after the November 2020 presidential election, the Federal Reserve declared climate change as a potential threat to financial stability and joined a network that advocates for using levers of financial regulation to address climate change. A group of Republican lawmakers are among critics who argue that central banks should not “weaponize” their authority to force banks and private companies to defund fossil fuel industries for political purposes. The Federal Reserve Board announced on Dec. 15, 2020, that it formally joined the Network of Central Banks and Supervisors for Greening the Financial System (NGFS), which was established three years ago. The NGFS promotes green finance and aims to develop recommendations for central banks “to manage risks and to mobilize capital for green and low-carbon investments,” according to its website. The group has nearly 100 members and observers, including the People’s Bank of China, the European Central Bank (ECB), and the …