The US Federal Reserve says it has withdrawn from an international network of financial authorities focused on climate change policies.

The Network of Central Banks and Supervisors for Greening the Financial System, or NGFS, aims to enhance the role of the financial system in promoting environmentally sustainable development.

Central banks and regulators from more than 90 countries were members of the NGFS as of December 10, 2024. The framework was set up in December 2017.

As a reason for its withdrawal, the Fed said in a statement on Friday that the scope of the NGFS had expanded to a range of issues "outside" the central bank's statutory mandate.

Chair Jerome Powell has repeatedly insisted the Fed is not a climate policymaker, and that decisions about policies to address the environment should be made by elected branches of government.

The announcement comes only days before President-elect Donald Trump is due to take office.

Meanwhile, a number of US major banks have left the Net-Zero Banking Alliance, a global group of financial institutions aiming to promote decarbonization.

Bloomberg said departures have been concentrated in the United States, suggesting this reflects efforts by banks to protect themselves from increasing political pressure as Trump returns to the White House.