WASHINGTON — On Friday, the Federal Reserve announced that it will withdraw from a global coalition of central banks that aimed to explore how financial system regulations could help mitigate the effects of climate change. This decision follows criticism from Republican members of Congress regarding the Fed’s involvement in the initiative.

In a brief statement, the Federal Reserve expressed its appreciation for collaborating with the Network of Central Banks and Supervisors for Greening the Financial System. However, it noted that the organization’s focus has expanded to encompass a range of issues that extend beyond the central bank’s official responsibilities.

This decision reflects another instance of the central bank, which is typically expected to operate independently of political influences, making moves that may protect it from potential scrutiny from the upcoming Trump administration. Earlier this month, Michael Barr, the vice chair for financial supervision who was known for his stringent oversight approach and faced opposition from major banks, announced he would be leaving his position by the end of this month, although he will continue to serve on the Fed’s board.

Stephen Miran, a prominent economic advisor chosen by President-elect Donald Trump, co-wrote a paper last year that critiqued the Fed’s attention to climate change in banking regulations as an example of “mission creep.”

The Federal Reserve joined the NGFS in December 2020 after President Joe Biden’s election and was among the last large central banks to do so. Currently, more than 140 central banks and financial supervisory authorities worldwide are members of this network.

Critics are concerned about the Fed’s decision to leave the network, as highlighted by Jeremy Kress, a professor at the University of Michigan’s Ross School of Business, who specializes in bank regulation. He stated, “For the Fed to engage with climate-related financial risks is the bare minimum, and now it seems to be stepping back from that.” He further indicated that such a retreat is troubling.

Among the Fed’s seven governors, five, including Chair Jerome Powell, voted in favor of the withdrawal, while Governors Michael Barr and Adriana Kugler chose to abstain from the vote.