The biggest American banks have given up the commitment to reach Net Zero
Daniel Fugere, President and Chief Advisor to the Non -Profit Non -Profit Shareholder Organization, while sowing, said the disclosure was a prerequisite for retaining banks for their climate purposes. “We want to understand what they are doing,” she said. Laws such as California reveal financial instability created by climate change, and fossil-oriented climate-orne, which will strengthen it.
Of course, only the requirement for banks to detect their emissions and climate-related emissions are likely to prevent the worst impact of global warming. According to a Main Report 2021 The International Energy Agency cannot build a new infrastructure for oil, gas and coal if the world is to limit global warming to 1.5 degrees Celsius (2.7 degrees Fahrenheit). That is why Patrick McCuli, a senior energy analyst for the French non -profit energy transition to restore finance, which is advocating for a more resistant banking sector, said legislators should “insist that banks reduce their financing of fossil fuels.”
“These companies are acting against the interests of humanity and we must stop them,” he told GRIST.
Fajans-Turner, however, said that policy of this nature will be difficult to register with the law and will probably face legal challenges even in the most progressive countries where the ban on natural gas in new construction have been beaten back by industrial groupsS
Anne Lipton, a professor of business law at the University of Tulan, said it is a better way for politicians to limit new fossil fuel projects is to look beyond the banking sector. For example, legislators may require insurance companies to take into account climate-related financial risks, in the design of their policies, which can make it difficult for fossil fuel projects to receive coverage. “We would like banks to stop financing risky activities, but at the end of the day, the bank’s work is to fund things that are predictably profitable,” she said. “The work of the rest of society is to do this (something) not profitable.”
Another strategy is to require banks to publish a clear decarbonisation plan, which in theory can be something like a rear door to block new investments in fossil fuels. “The implicit in the goal is that the bank is taking some action to ensure that it is responsible for this purpose,” Fugere said. If the plan mentions “net-zero” to a certain date, then in order to be reliable, it must include some scaling of fossil funding. If it claims to be aligned with a path to restriction of global warming to 1.5 degrees C, then it should not allow the excavation of excavated fuels.
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