Wednesday, 27 July 2022

Using 'Our' Money to Make Climate Change Worse?

Alec Connon (of 'Stop the Money Pipeline') suggests that US banks have a major responsibility for climate change (https://www.theguardian.com/commentisfree/2022/jul/27/looking-for-someone-to-blame-for-the-extreme-heat-try-wall-street). Connon points out that, since the 2015 Paris Accord, the 6 largest US banks (Bank of America, Chase, Citi, Goldman Sachs, Morgan Stanley and Wells Fargo) have provided $1.4 tn of financing to the fossil fuel industries. The financing by these banks of coal, oil and gas in 2021 is actually higher than it was in 2016 (the year after the Paris Accord, to attempt to limit climate change to 1.5 degrees Centigrade above pre-industrial levels). Connon claims that these America's banks are essentially, using the money of American depositors, to make climate worse for Americans (and the rest of the world). These US banks are, of course, far from being alone in this. Many world banks essentially do the same. Money trumps emissions. Thus far, US banks have resisted demands from shareholders and investors to reduce such funding. Some of these banks have made pledges but nothing much happens. Although, in 2015, virtually all countries signed up to adopt the Paris agreement, nobody apparently told Wall Street! Banking can't get a free pass on this! Perhaps their profits should be taxed relative to the damage caused by climate change? That could be a pretty big bill!

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