Commercial, Energy Efficiency, GHG Emissions - February 26, 2020
JPMorgan's $200 billion for clean energy limits funding for coal, Arctic drilling projects
JPMorgan has committed to facilitating $200 billion this year for projects that advance the United Nations Sustainable Development Goals and support climate action.
The commitment includes $50 billion that will go toward green initiatives that fulfill their clean financing target, which was set in 2017 with an aim to facilitate $200 billion in clean financing. This goal is expected to be reached by the end of the year.
As part of this announcement, JPMorgan also declared that they will place financing restrictions on projects that derive the majority of their revenue from coal. As part of these regulations, they will also restrict funding that would go on to be used to develop a new, or refinance an existing, coal-fired power plant, unless it is using carbon capture and sequestration technology. Additionally, the bank will no longer provide funding to projects that will be drilling for oil in the Arctic region.
To support their goal for clean energy financing, they will also be launching the JPMorgan Development Finance Institution to assist developing countries and assemble a new Energy Transition Team to provide strategic and financial advice to corporate clients on M&A transactions that support their carbon optimization objective.
The banking institution also previously committed to sourcing 100% clean energy for its global operations and with their announcement today will be joining the Climate Action 100+.