Press Release<\/b><\/span><\/strong><\/p>\n Paris, September 19, 2022 \u2013 While the top three leaders of the Glasgow Financial Alliance on Net Zero (GFANZ) recently issued a statement calling all members for an end to financing of new coal projects (1), a new report (2) released today by Reclaim Finance reveals that major US banks keep pumping billions of dollars into companies that are developing new coal mines, plants, and infrastructure. While policies adopted by US banks after the Paris agreement are toothless to stop coal expansion, financial research also sheds light on many transactions in support of coal developers after the banks joined the Glasgow Financial Alliance on Net Zero (GFANZ). As Climate week begins and COP27 approaches, Reclaim Finance calls on US banks to immediately complement their net-zero pledges with real action and implement robust coal policies.<\/span><\/span><\/span><\/b><\/p>\n<\/div><\/div><\/div> Going against the Intergovernmental Panel on Climate Change (IPCC) and the International Energy Agency (IEA) 1.5\u00b0C recommendations (3), the big US banks continue to finance companies that are developing new coal projects worldwide. Since 2019, JPMorgan Chase, Citigroup, Bank of America, Morgan Stanley, and Goldman Sachs have collectively provided US$40 billion to coal developers. (4)<\/p>\n Lucie Pinson, CEO and founder of Reclaim Finance, comments:<\/strong> \u201c US banks are leading us to climate disaster. Their unrelenting support to developers of new coal projects is reckless. By continuing to finance new coal mines, power plants, and infrastructure, they are jeopardizing our chances at building a breathable future. In light of ongoing extreme climate events, they cannot afford to lose any more time and must urgently walk the talk and stop financing coal expansion.\u201d<\/p>\n<\/blockquote>\n US banks stopped providing dedicated or project financing to new coal projects, but this has little real-world impact because the bulk of their financing to the coal sector is provided through corporate financing for which US banks have very loose restriction criteria. Unlike 42 financial institutions which have already put an end to the financing of developers of new coal projects, US banks are lagging far behind with weak coal policies that let funds flow to coal expansion.<\/p>\n As a result, US banks continue to finance companies such as Glencore, Adani, and Mitsubishi, which are among the largest coal developers and have a disastrous human rights record (4). Moreover, financial research by Reclaim Finance found that joining GFANZ in 2021 and committing to net zero by 2050 did nothing to stop them from financing coal developers.<\/p>\n Cynthia Rocamora, private finance campaigner at Reclaim Finance, comments:<\/strong> \u201cMaking net-zero pledges but pouring money into coal expansion is climate hypocrisy. US banks are not only running the risk of costing the world its climate objectives, they are also causing immediate irreversible harm to local communities. With less than a year to comply with the updated Race to Zero criteria which, once again, emphasizes the urgent need to stop developing new coal projects, US banks must immediately adopt coal policies that match their commitments.\u201d<\/p>\n<\/blockquote>\n<\/div><\/div><\/div>\n
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