Fossil Free Finance Act of 2026 mandates financial sector emission reductions to protect financial stability.

The Fossil Free Finance Act of 2026 amends the Bank Holding Company Act of 1956 and the Financial Stability Act of 2010 to require a reduction of financial sector emissions to protect financial stability. It mandates covered bank holding companies to submit emission reduction plans to the Board of Governors of the Federal Reserve System. These plans must include a selection of an emissions baseline year, a plan to reach zero financial sector emissions by January 1, 2050, and a plan to reduce emissions by 50 percent below the baseline year by January 1, 2035.

Fossil Free Finance Act of 2026 mandates financial sector emission reductions to protect financial stability.

The Fossil Free Finance Act of 2026 amends the Bank Holding Company Act of 1956 and the Financial Stability Act of 2010 to require a reduction of financial sector emissions to protect financial stability. It mandates covered bank holding companies to submit emission reduction plans to the Board of Governors of the Federal Reserve System. These plans must include a selection of an emissions baseline year, a plan to reach zero financial sector emissions by January 1, 2050, and a plan to reduce emissions by 50 percent below the baseline year by January 1, 2035.