Commentary The Federal Reserve, soon after the November 2020 presidential election, declared climate change a potential threat to the U.S. financial system, joining a club of central banks that seek to “mobilize” more capital for green energy. The Biden administration and top Fed officials announced their plans to introduce regulations to address climate-related financial risks, saying they believe banks are vulnerable to the impacts of wildfires, hurricanes, floods, and droughts. But a staff study by the New York Federal Reserve Bank shows that climate has almost no impact on banks. The paper published in November analyzes risks posed by severe weather conditions to the nation’s banks and financial system. The title of the report asks, “How Bad Are Weather Disasters for Banks?” “Not very,” say the authors of the report in the first sentence of the abstract. “We find that weather disasters over the last quarter century had insignificant or small …