January, 14 2021, 11:00pm EDT
Trump Administration's OCC Pushes Through Final Gift to Oil and Gas Industry
Rule requires banks to jump through additional administrative hoops in denying credit based on risk.
WASHINGTON
The Office of the Comptroller of the Currency (OCC) has finalized the Fair Access to Financial Services rule a day after current OCC head Brian Brooks announced his resignation. As global banks increasingly tighten credit to clients that pose significant climate risk, including coal projects and Arctic oil and gas projects, the OCC rule establishes new hurdles to banks exercising risk management.
The rule has been strongly opposed by Wall Street's largest banks, banking trade groups, ESG investors and legal scholar.
Lila Holzman, energy program manager of As You Sow, made the following statement:
"The OCC's final rule is reactive and inappropriate. Banks have begun applying common sense risk assessment to limit financing of activities that create risk and destroy value. OCC's attempt to meddle in this process goes against sound economics at a time when systemic climate risks are poised to wreak havoc on our economy."
Danielle Fugere, president of As You Sow, made the following statement:
"The Trump administration's rushed new rule is a last ditch effort to protect the increasingly risky fossil fuel sector from the normal operation of capital markets. It's standard practice in capital markets that, as risk increases, cost of capital increases; when risks are too great, capital is denied. Attempting to put government's thumb on the scale to protect outdated and systemically risky industries flies in the face of good government and good business practices. This rushed and poorly reasoned rule will not withstand legal challenge."
As You Sow is the nation's non-profit leader in shareholder advocacy. Founded in 1992, we harness shareholder power to create lasting change that benefits people, planet, and profit. Our mission is to promote environmental and social corporate responsibility through shareholder advocacy, coalition building, and innovative legal strategies.
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"It will unleash the potential of safe and inspiring public education for 50 million K-12 students in every neighborhood across the country," the statement added. "And, it willadd essential staff to vulnerable schools, create 1.3 million good-paying jobs annually, and reduce carbon emissions by 78 millionmetric tons each year—that's the same as taking 17 million gas-powered cars off the road!"
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Bowman (D-N.Y.)—the founder and former principal of the Cornerstone Academy for Social Action, a public middle school in the Bronx—said that "it's time to revolutionize our public schools."
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Bowman continued:
Schools should be the centers of our communities, places of joy and self-discovery where students feel safe to grow, thrive, and explore their passions and curiosity. Right now, they're crumbling, leaving our students, educators, and communities behind. We must take advantage of this moment by putting them first and facing the climate crisis head-on with bold investments in our schools focused on environmental, educational, economic, and racial equity.
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The proposed legislation comes three days after students at more than 50 high schools across the U.S.—led by the Sunrise Movement—launched the Green New Deals for Schools campaign. The campaign is demanding that education officials provide school buildings powered by renewable energy; free, healthy, local, and sustainable meals; support for finding well-paying, unionized green careers; plans for extreme weather events; and instruction about the climate crisis.
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