The transition to clean energy is sparking intense debates as the climate crisis worsens. While cities, universities, and pension funds across the U.S. have divested from fossil fuels, the divestment movement has faced obstacles. In California, a bill that would have required public pension funds to stop investing in the largest oil, gas, and coal companies was killed for the second consecutive year. The bill’s rejection was due to concerns over its impact on workers’ retirement funds.
Banks also play a significant role in the climate crisis by financing governments in dealing with its effects and lending to fossil fuel companies. Major banks like JPMorgan Chase and Wells Fargo help California sell bonds to finance initiatives addressing climate change, despite being major financiers of the petrochemical industry. Activist groups argue that California’s investments in climate resilience should not contribute to the profits of banks that undermine emission reduction efforts.
In New Mexico, a pipeline operator’s plans for a hydrogen pipeline on Navajo land have sparked controversy. While proponents claim the project would bring clean energy and jobs, opponents argue it would harm the environment and health of the Navajo people.
The frequency and intensity of climate-induced emergencies have overwhelmed scientists and journalists, calling for a new approach to disaster reporting. Instead of treating each disaster as unrelated, climate change should be recognized as the connecting factor among them.
In other news, Christian Aid, a prominent UK charity, has ended its banking relationship with Barclays due to the bank’s financing of fossil fuels. Barclays has financed $190 billion in fossil fuel projects globally between 2016 and 2022.
Eight multinational banks, including JPMorgan Chase and Citibank, are facing pressure to stop financing oil and gas projects in the Amazon region. Over $20 billion has been invested in fossil fuel extraction in the Amazon, with more than half coming from these eight banks.
A report by the Sierra Club’s Fossil-Free Finance campaign reveals a “hidden pipeline” of financing for fossil fuel activities, with six major US banks providing over $433 billion in lending and underwriting to the most active fossil fuel companies globally since 2016.
Germany recently released a draft policy for the provision of guarantees in the energy sector, contradicting its pledge to end international financing for coal, oil, and gas projects made at COP26. Germany’s export credit agency’s policy raises questions about its commitment to ending fossil fuel funding.
