Solar farm on a rural hillside

A collection of financial industry trade groups is calling for science-based climate policy in the U.S. that will help guide its transition to a low-carbon economy.

The U.S. Securities Industry and Financial Markets Association Inc. (SIFMA) along with 10 other industry trade associations (known as the U.S. Climate Finance Working Group) published a set of principles that they believe should underpin U.S. policy to address global warming.

The principles β€” which represent the views of banks, investment banks, insurers, asset managers, pension funds and other financial firms β€” call for the U.S. to set policy goals, based on climate science, that align with the Paris Agreement.

They also recommend measures that put a price on carbon, utilize markets, and foster innovation in financial services.

As well, the principles propose stronger U.S. engagement with the international community; more robust global data and disclosure standards; and risk-based regulation.

β€œThe transition to a low-carbon economy will require concerted and coordinated action by all stakeholders, including tremendous reliance of financial markets to facilitate green equity investment, sector transition financing and liquidity and risk management,” said Kenneth Bentsen, Jr., president and CEO of SIFMA, in a statement.

Alongside SIFMA, the working group includes the American Bankers Association, Bank Policy Institute, CRE Finance Council, Financial Services Forum, Futures Industry Association, International Capital Market Association, Institute of International Bankers, Institute of International Finance, International Swaps and Derivatives Association, and the Investment Company Institute.