March, 20 2020, 12:00am EDT
COVID-19 Recovery Must Help Prevent a Future Climate Crash on Wall Street: Policymakers Need to Ensure COVID-19 Stimulus Plans Better Protect the Financial System and Economy From the Risks of Climate Change
The broad coalition of organizations that comprise Stop the Money Pipeline are warning against any immediate measures in response to the COVID-19 pandemic that would exacerbate the ongoing threat of catastrophic climate change. Instead, recovery measures must prepare the financial sector for the threats posed by the climate crisis.
WASHINGTON
The broad coalition of organizations that comprise Stop the Money Pipeline are warning against any immediate measures in response to the COVID-19 pandemic that would exacerbate the ongoing threat of catastrophic climate change. Instead, recovery measures must prepare the financial sector for the threats posed by the climate crisis.
"Now is not the time to relax rules on financial institutions' ability to weather future crises, particularly the climate crisis, the impacts of which continue to unfold even as we deal with COVID-19. Instead, policymakers should be bolstering the resilience of the financial system to safely handle the climate shock that is barreling towards us by requiring banks, asset managers, and other financial institutions to responsibly phase out financing and investments in fossil fuels and transition to a green economy," said Moira Birss, Climate and Finance Director, Amazon Watch.
Time and again the financial sector has proven itself incapable of self-regulation. In fact, the global banking industry is reportedly already trying to use this crisis to roll back common-sense climate risk measures.
"Wall Street's record is horrible -- they've been pouring money into fossil fuels even after the Paris climate accords," said Bill McKibben, a leader of the Stop the Money Pipeline campaign. "If bankers need the help of society, then society can demand that they commit to helping with the other grave crisis we face."
Now, in this moment of crisis, policymakers have a unique opportunity to bolster the resiliency of the financial system and reduce the risk of a climate crash -- which could happen even as we're dealing with the COVID-19 crisis. Doing so will require that lawmakers resist the calls from Wall Street to relax regulations and instead take clear, decisive actions that require banks, asset managers, and other financial institutions to phase out investments in fossil fuels.
These actions must include:
- Restricting the ability of financial institutions to invest in fossil fuel extraction and production.
- Repealing the authority for banks to own physical assets like oil refineries, pipelines, tankers, power plants, and coal mines and trade commodities, specifically including such fossil fuels as crude oil, fracked gas, and coal.
- Establishing a Community Climate Investment Mandate: Financial institutions with a federal charter have a duty to invest a certain percentage into climate change mitigation and resilience efforts.
- Incorporating climate risk into the prudential regulatory and supervisory framework for systemically important financial institutions.
Just last week, Senate Democrats hosted a hearing on the "Economic and Financial Risks of Climate Change," during which a series of financial experts explained how the climate crisis poses a catastrophic risk to the financial sector and overall economy. Experts have published several recent papers demonstrating the risks posed by financial institutions' investments in fossil fuels and the urgent need for policymakers to mitigate those risks.
"Big banks have continually increased their funding for fossil fuels in the years since the Paris Agreement, putting our communities and our economy at risk of massive disruption due to climate change," said Sierra Club campaign representative Ben Cushing. "As Washington and communities across the country are working to address the pandemic, it's critical that Congress ensures that relief efforts go to protecting the most vulnerable and in need, not corporate polluters or those financing their operations."
The banking sector in particular has been fueling climate risk by increasing its support for fossil fuels. As detailed in Banking on Climate Change: Fossil Fuel Finance Report 2020, released earlier this week, major U.S. banks have overall increased their financing of fossil fuels over the last year. Since the Paris Agreement, the big six U.S. banks have funneled almost $1 trillion into fossil fuels. JPMorgan Chase, far and away the world's biggest banker of fossil fuels, has provided nearly $269 billion in lending and underwriting for fossil fuels in the last four years. The top four fossil banks in the world are all U.S.-based: Chase, Wells Fargo, Citi and Bank of America.
"We've seen this movie before," said Jason Opena Disterhoft, climate and energy senior campaigner with Rainforest Action Network. "Big banks always do their best not to waste a crisis, and they're reportedly already trying to shirk their basic climate responsibility. In this recovery we face a clear choice: bail out the fragile fossil financial system and lock in the next climate crash, or keep building a resilient green financial infrastructure that will serve as a stable foundation going forward. Wall Street has already shown us they will choose profit over prudence. Lawmakers, regulators and civil society must ensure that we make the safe choice for all of our futures."
Over the coming weeks, Stop the Money Pipeline will continue to pressure lawmakers and financial institutions to take decisive action during this crisis to help prevent the future threats posed by climate disruption.
LATEST NEWS
Muslim Lawmakers Decry 'Vile' Bipartisan Islamophobic Attacks on Zohran Mamdani
The lawmakers asserted that "smears from our colleagues on both sides of the aisle" cannot be allowed to continue.
Jun 27, 2025
All four Muslim members of the U.S. House of Representatives on Friday condemned their colleagues' Islamophobic attacks on Democratic New York City mayoral nominee Zohran Mamdani, which have come not only from Republicans but also from at least two congressional Democrats representing the candidate's home state.
"The vile, anti-Muslim, and racist smears from our colleagues on both sides of the aisle attacking Zohran Mamdani cannot be met with silence," Reps. Rashida Tlaib (D-Mich.), Ilhan Omar (D-Minn.), André Carson (D-Ind.), and Lateefah Simon (D-Calif.) said in a joint statement.
"At a time of increased violence against elected officials, we cannot allow the attacks on Zohran Mamdani to continue."
Mamdani—a democratic socialist who would be the first Muslim mayor of the nation's largest city if he wins November's general election—has come under fire by Republicans including Rep. Andy Ogles of Tennessee, who on Thursday formally appealed to U.S. Attorney Pam Bondi to initiate proceedings to denaturalize and deport "little Muhammad."
Earlier this week, Rep. Nancy Mace (R-S.C.) posted a photo of Mamdani wearing a traditional tunic with the caption, "After 9/11 we said, 'Never Forget.' I think sadly we have forgotten."
As of Friday afternoon, no Democratic member of Congress from New York had explicitly condemned their GOP colleagues' Islamophobic remarks. To the contrary, Sen. Kirsten Gillibrand (D-N.Y.) falsely claimed Thursday that Mamdani had made references to "global jihad" and spuriously asserted that "globalize the intifada"—a call for Palestinian liberation and battling injustice—is a call to "kill all the Jews."
Freshman Rep. Lauren Gillen (D-N.Y.) also falsely accused Mamdani of "a deeply disturbing pattern of unacceptable antisemitic comments."
The four Muslim lawmakers said in their statement that "these hateful, Islamophobic, and racist tropes have become so entrenched and normalized in our politics."
"We know these attacks all too well," they added.
Omar and Tlaib have been on the receiving end of Islamophobic attacks by House colleagues and outside death threats for years, stemming in part from Omar's status as refugee and Tlaib's as the only Palestinian American in Congress.
Like Mamdani, both lawmakers have also been targeted from both sides of the aisle for their support for Palestinian liberation, as well as their opposition to Israel's invasion, occupation, colonization and apartheid in Palestine, and the assault and siege of Gaza that are the subject of an ongoing International Court of Justice genocide case.
Advocacy groups have reported a sharp increase in anti-Muslim and anti-Palestinian hate incidents since the October 7, 2023 Hamas-led assault on Israel, a climate reminiscent of the pervasive Islamophobia following the September 11, 2001 attacks. There has also been a surge in antisemitism as Israeli forces obliterate Gaza, although critics have decried the widespread conflation of opposition to Zionism with hatred of Jewish people by groups including the Anti-Defamation League.
"At a time of increased violence against elected officials, we cannot allow the attacks on Zohran Mamdani to continue," the four lawmakers stressed. "They directly contribute to the ongoing dehumanization and violence against Muslim Americans. We unequivocally reject the normalization of anti-Muslim hate and fearmongering and call on elected leaders across our country to speak out."
Rep. Pramila Jayapal (D-Wash.) also issued a statement Friday condemning the "outpouring of disgraceful, dangerous, racist ideology from sitting members of Congress and [Trump] administration officials following Zohran Mamdani's win in the New York mayoral primary."
Jayapal continued:
The constant displays of Islamophobia are an affront to the millions of Muslim Americans and Muslims around the world. One of the most jarring called for the denaturalization and deportation of Mr. Mamdani, an American citizen who just won a massive Democratic primary with more votes than that member, Mr. Ogles, could ever hope to win. This is an insult to voters in New York City who take democracy seriously.
Denaturalization of U.S. citizens is part of the Trump playbook to attack all legal immigration. It is completely outrageous and flies in the face of the laws of this country.
"The hateful language directed at Mr. Mamdani will get someone killed, and we all should be outraged," Jayapal added. "It must end. Every person who cares about democracy, freedom of religion, and the right for all Americans to be treated equally should speak out immediately against these insane and dangerous attacks."
Keep ReadingShow Less
Supreme Court Religious Opt-Out Ruling 'Could Wreak Havoc on Public Schools'
The ruling, said Justice Sonia Sotomayor, reflects the right-wing majority's "failure to accept and account for a fundamental truth: LGBTQ people exist."
Jun 27, 2025
A day after many LGBTQ+ Americans celebrated the 10th anniversary of the landmark U.S. Supreme Court ruling that established marriage equality in the United States, right-wing Justice Samuel Alito suggested in a new decision that public schools should not promote "acceptance of same-sex marriage."
Alito's opinion was handed down in a 6-3 ruling in Mahmoud v. Taylor, in which the high court's right-wing majority held that parents should be permitted to opt their children out of certain lessons in public schools on religious grounds.
The ruling stemmed from a lawsuit filed by parents of several religious backgrounds in Montgomery County, Maryland, who sued the county's school system for not giving parents advance notice and an opportunity to opt out of a curriculum that included storybooks dealing with LGBTQ+ themes.
The books included Pride Puppy, about a dog that gets lost at an LGBTQ+ pride parade; Love, Violet, about a girl who has a same-sex crush; Born Ready, about a transgender boy; and Uncle Bobby's Wedding, about a gay couple getting married.
Alito pointed to the latter book in particular in his opinion.
"It is significant that this book does not simply refer to same-sex marriage as an existing practice," wrote the judge. "Instead, it presents acceptance of same-sex marriage as a perspective that should be celebrated."
Elly Brinkley, staff attorney for U.S. Free Expression Programs at the free speech group PEN America, noted the timing of Alito's comments about marriage equality.
"Just after the 10th anniversary of Obergefell v. Hodges and as we celebrate Pride Month, the Supreme Court has delivered a devastating blow to the dignity of LGBTQ+ people and families," said Brinkley. "This ruling means that parents can opt their children out of any classroom activity that acknowledges same-sex marriages, the right to which this very court held was guaranteed by the Constitution."
The right-wing majority ruled that Montgomery County Public Schools must allow families to opt out of any lessons that parents believe will interfere with their children's religious education, including stories or discussions with LGBTQ+ themes.
"This ruling threatens to give any religious parent veto power over public school curricula. If this dangerous logic is carried forward, it could unravel decades of progress toward inclusive education and equal rights."
Legal scholars said that in addition to stigmatizing the families of an estimated 5 million children in the U.S. who have one or more LGBTQ+ parents, the ruling could pave the way for parents to argue that their children shouldn't be exposed at school to materials involving any number of topics, including evolution, yoga, and mothers who work outside the home—all issues that have been the subject of earlier, unsuccessful lawsuits against schools.
"The decision could have far-reaching consequences for public schools' ability to create an inclusive and welcoming environment that reflects the diversity of their communities, as well schools' ability to implement any secular lesson plan that may trigger religious objections," said the ACLU, which filed an amicus brief in the case arguing that the school district's "policy prohibiting opt-outs from the English Language Arts curriculum is religiously neutral and applicable across the board."
Daniel Mach, director of the ACLU's Program on Freedom of Religion and Belief, said that religious freedom is "fundamentally important" under U.S. law.
But freedom of religion, Mach said, "shouldn't force public schools to exempt students from any secular lessons that don't align with their families' religious views. This decision could wreak havoc on public schools, tying their hands on basic curricular decisions and undermining their ability to prepare students to live in our pluralistic society."
Cecilia Wang, national legal director of the ACLU, added that parents with religious objections will now be "empowered to pick and choose from a secular public school curriculum, interfering with the school district's legitimate educational purposes and its ability to operate schools without disruption—ironically, in a case where the curriculum is designed to foster civility and understanding across differences."
Liberal Justices Sonia Sotomayor, Elena Kagan, and Ketanji Brown Jackson dissented in the case, with Sotomayor making the unusual move of announcing her dissent from the bench.
Citizens fully experiencing the United States' multicultural society, said Sotomayor, "is critical to our nation's civic vitality. Yet it will become a mere memory if children must be insulated from exposure to ideas and concepts that may conflict with their parents' religious beliefs."
She also accused the majority of making a "myopic attempt to resolve a major constitutional question through close textual analysis of Uncle Bobby's Wedding," which revealed, she said, "its failure to accept and account for a fundamental truth: LGBTQ people exist."
The ruling is the latest victory for right-wing advocates of what they view as religious freedom at the high court; other recent rulings have allowed a web designer to refuse to make a website for same-sex couples and a high school football coach to pray with his team at school games.
Annie Laurie Gaylor, co-president of the Freedom From Religion Foundation, called Friday's ruling a "deeply troubling outcome for public education, equality, and the constitutional principle of the separation between state and church."
"This ruling threatens to give any religious parent veto power over public school curricula. If this dangerous logic is carried forward, it could unravel decades of progress toward inclusive education and equal rights," said Gaylor. "Public schools must be grounded in facts and reality and not subject to religious censors."
Keep ReadingShow Less
'Congress Can't Sit Back': Anti-War Groups Call on Senate to Invoke War Powers Act in Friday Vote
More than 41,000 people have signed a petition calling on Congress to invoke the War Powers Act to limit Trump's ability to strike Iran without congressional authorization.
Jun 27, 2025
The U.S. Senate will vote Friday evening on whether to invoke the War Powers Act, limiting President Donald Trump's ability to launch a war with Iran.
With the vote looming, anti-war groups are turning up the pressure, urging their senators to reassert Congress's ability to check the president's power after he unilaterally inserted the U.S. into Israel's war with Iran by launching airstrikes on three Iranian nuclear sites last weekend.
More than 41,000 people have signed a petition launched by the progressive group MoveOn Civic Action, which calls on Congress to vote for the resolutions introduced in both the House and Senate in recent weeks.
"By launching strikes on Iran without congressional approval, Trump endangered civilians in the U.S. and around the world, while dragging our country closer to another endless war," said MoveOn spokesperson Britt Jacovich. "Congress has a responsibility to the people who elected them to check this abuse of power and take urgent action to prevent the U.S. from being pulled into another deadly and costly conflict."
The vote on the Senate resolution, introduced by Sen. Tim Kaine (D-Va.), will take place Friday at 6:00 pm Eastern time. A vote on the House resolution introduced by Reps. Ro Khanna (D-Calif.) and Thomas Massie (R-Ky.) has not yet been scheduled.
The War Powers resolution, which would require Trump to receive congressional approval for future strikes on Iran, has overwhelming support from Senate Democrats. However, according to reporting from Punchbowl News Friday, Sen. John Fetterman (D-Pa.), a notorious pro-Israel hawk, is expected to vote no.
If all other Democrats vote yes, they'd still need five Republicans to join them. The libertarian Sen. Rand Paul (R-Ky.) has also signaled his support for the resolution. But the rest, including seven who voted for a similar resolution in 2020, have remained tight-lipped about Friday's vote.
The majority of Americans, 56%, said they disapproved of Trump's weekend strikes against Iran in a YouGov poll published Tuesday. They are even more strongly opposed to further escalations, with 84% saying in a Reuters/Ipsos poll that closed Monday that they were worried about growing conflict between the U.S. and Iran.
On Monday, Trump announced that a cease-fire had been brokered between Israel and Iran. But with the two countries accusing one another of violating the truce, doubt remains about whether it will hold.
Cavan Kharrazian, a senior policy advisor for the group Demand Progress, said that uncertainty is all the more reason Congress must assert itself to stop further escalations from the United States.
"In just days, we've gone from a supposed two-week decision window to immediate U.S. airstrikes, a brief cease-fire, Israel and Iran trading fire again, and now another fragile pause," Kharrazian said. "We strongly support diplomatic efforts to end this crisis—but Congress can't sit back and hope for the best while the risk of U.S. involvement in unauthorized hostilities remains."
Keep ReadingShow Less
Most Popular