On Monday, the Basel Committee on Banking Supervision, which sets international banking standards, announced a shift in its approach to climate-related financial regulation. Instead of mandating strict rules, the committee will now encourage voluntary disclosures and concentrate mainly on the risks posed by extreme weather events. This decision has sparked concern among climate policy experts and advocates, who argue that a voluntary framework lacks the enforcement necessary to ensure banks adequately address the financial risks associated with climate change. Critics warn that by narrowing the focus to only extreme weather, the committee is overlooking broader climate-related risks, such as the transition to a low-carbon economy and the long-term impacts of climate change on asset values. The move is seen as a setback for a key international task force working to integrate climate risk into financial regulation. Experts believe that without robust, mandatory climate rules, U.S. financial markets could become more exposed to volatility and systemic risks, potentially undermining financial stability and efforts to mitigate climate change. The Basel Committee's decision reflects ongoing debates among regulators worldwide about the best ways to address climate risks in the financial sector.