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sierra club
'Laggards': Top 6 Wall Street Banks Failing on Net-Zero Climate Pledges
"Wall Street banks need to walk the walk, and their regulators, clients, and shareholders need to do more to hold them accountable."
Oct 09, 2024
Sierra Club on Wednesday issued a report showing that the United States' six largest banks lag behind in efforts to meet 2030 and 2050 climate emissions targets they've set, as they continue to pour billions of dollars into fossil fuel financing every year.
The 29-page report, Leaders or Laggards: Analyzing Major U.S. Banks' Net-Zero Commitments, assesses the progress of JPMorgan Chase, Citigroup, Bank of America, Wells Fargo, Goldman Sachs, and Morgan Stanley on efforts to meet 2030 targets, exclusion policies, and climate disclosure policies—the overall aim is to track their progress toward net-zero across their portfolios by 2050, which each has pledged to do.
"The role of major banks is critical for ensuring a sustainable and prosperous future," Ben Cushing, director of the Sierra Club's Fossil-Free Finance campaign, said in a statement.
"We cannot solve the climate crisis if they continue with business as usual," he added. "While the largest U.S. banks have committed to reaching net-zero emissions by 2050, they are evidently not yet on track to make it happen."
"Wall Street banks need to walk the walk, and their regulators, clients, and shareholders need to do more to hold them accountable," he concluded.
Major US banks @Chase @BankofAmerica @Citi @WellsFargo @GoldmanSachs @MorganStanley could actually make progress toward net-zero by:
1️⃣ Improving 2030 targets
2️⃣ Strengthening exclusion policies
3️⃣ Enhancing transparencyhttps://t.co/CcZzTCrGKi pic.twitter.com/PpPDXTApfQ
— Sierra Club (@SierraClub) October 9, 2024
The report's titular question is answered in the concluding section. "In general, the targets and exclusion policies of the major U.S. banks fall far behind international best practices and what is required in order to achieve their own climate commitments," it says.
"[They] have serious improvements to make in order to ensure their 2030 targets and financing policies are truly aligned with the goal of reaching net-zero by 2050," it also says.
The report provides detailed standards that banks must uphold if they want their net-zero policies to be "robust," and lays out examples of how each bank is failing to meet them.
The six banks are "relatively equal" in terms of their progress toward net zero, but there are some differences between them, the report says.
For example, only Citigroup and Wells Fargo have committed to reduce absolute emissions in the oil and gas sector—a key standard. The other four banks have merely set "emissions intensity" targets. Wells Fargo is the only one of the six to declare that its carbon accounting for 2030 won't include offsets or removal.
Bank of America, for its part, has backtracked on earlier climate pledges. Previously, the bank promised not to directly fund oil and gas drilling in the Arctic, but in December it announced it would simply apply "enhanced due diligence" to such projects.
One key standard that banks should employ is separating their emissions bookkeeping for lending and underwriting, the report says. Underwriting accounts for roughly half of banks' fossil fuel financing but is harder for the public to track than lending.
"Some banks limit their sectoral targets to cover lending, but exclude underwriting, creating a massive loophole through which billions of dollars can still be poured into heavily emitting sectors and projects," the report says.
In general, the report urges more standardization of climate accounting methods along with improved transparency and disclosure policies.
Four of the six banks are in fact in the top five on the list of global banks financing the fossil fuel industry since the Paris agreement was signed, according to the latest Banking on Climate Chaosreport, released in May. And when only financing for companies expanding oil and gas projects are considered, rather than just continuing to extract from existing reserves, the U.S. banks remain at the top.
"By far the most essential action that banks must take to reach their net-zero goals is to commit to ending support for expansion of fossil fuel production," the Sierra Club report says, citing Banking on Climate Chaos.
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Exclusive: Khanna Proposes End to 'Unconscionable' Taxpayer Subsidies for Big Oil
"The fossil fuel industry receives over $20.5 billion in taxpayer dollars every year while fleecing American consumers and driving a global climate crisis," said the California Democrat.
Sep 26, 2024
As fossil fuel giants continue to rake in billions of dollars in profits, U.S. Rep. Ro Khanna on Thursday is reintroducing legislation to end giving billions in taxpayer dollars to companies that inject captured carbon dioxide into wells to extract more climate-wrecking oil.
"The fossil fuel industry receives over $20.5 billion in taxpayer dollars every year while fleecing American consumers and driving a global climate crisis," Khanna (D-Calif.) told Common Dreams. "The End Polluter Welfare for Enhanced Oil Recovery Act will eliminate the subsidy for captured carbon used for enhanced oil recovery, which only leads to more fossil fuel extraction and does nothing to mitigate climate change."
While advocates of carbon capture utilization and storage claim that it's necessary to address the fossil fuel-driven climate emergency, most CO2 captured in the United States is used to extract more planet-heating oil and gas, leading many scientists and green groups to argue that it is a "false climate solution."
"Oil drilling is the real story behind the fossil fuel industry's carbon capture obsession," said Jim Walsh, policy director at Food & Water Watch, which has endorsed Khanna's bill. "These corporate polluters are raiding public coffers from what could easily be hundreds of billions of dollars while greenwashing the further degradation of our climate."
Walsh also highlighted the impact on people who live near fossil fuel infrastructure, telling Common Dreams that "communities across the country are facing the potential for thousands of harmful industrial projects and tens of thousands of miles of dangerous pipelines that will do little more than put money in the pocket of the fossil fuel industry."
Despite such warnings, Congress has actually boosted Section 45Q tax giveaways for companies using captured CO2 for enhanced oil recovery (EOR) since Khanna first introduced the legislation in December 2021. The Inflation Reduction Act of 2022 was heralded as a "landmark" climate package for its investments in cleaner energy, but a little-noticed provision in the law increased the relevant credit for CO2 injection from $35 to $60 per metric ton.
"Taxpayers shouldn't be left footing the bill to help Big Oil boost its profits at the expense of our health and economy."
This year, 15 other House members are backing Khanna's bill, as are over a dozen organizations. Among them is Evergreen Action, which has spent years calling for reforms, including a June memo denouncing 45Q subsidies that encourage more fossil fuel production.
"It's unconscionable that American taxpayers are still subsidizing oil and gas companies to extract even more fossil fuels through so-called 'enhanced oil recovery,'" said Evergreen Action senior energy transition policy lead Mattea Mrkusic. "By eliminating these wasteful tax giveaways, Rep. Ro Khanna's bill takes a crucial step toward ending one of many federal fossil fuel handouts that drive climate pollution."
"Climate change is no longer a distant threat—it's happening right now, fueling more frequent and severe weather events, disproportionately impacting marginalized communities, and costing the American people billions every year," Mrkusic told Common Dreams. "Taxpayers shouldn't be left footing the bill to help Big Oil boost its profits at the expense of our health and economy. It's a perfect time to fully invest in our clean energy future instead."
Khanna's reintroduction of the End Polluter Welfare for EOR Act follows the hottest year in human history—a record that 2024 is expected to beat, with historic summer heat that led global scientists to demand urgent action to shift away from fossil fuels.
It also comes less than six weeks away from the U.S. general election, in which Americans are set to determine the makeup of Congress and the next occupant of the Oval Office. While Democratic Vice President Kamala Harris has the support of nearly every major climate group, former Republican President Donald Trump, who has pledged to swiftly gut federal climate policies if Big Oil puts $1 billion toward his campaign, has been dubbed an existential threat to progress on the climate crisis.
Regardless of who wins in November, there's also a looming Capitol Hill battle over taxation, given that policies Trump signed into law in 2017 are set to expire at the end of next year. As Common Dreamsreported in June, the climate movement sees that debate as an opportunity to end tax giveaways for the fossil fuel industry.
"Fossil fuel companies have raked in astronomical profits at the expense of communities while Big Oil and Gas lobbyists actively work to keep us hooked on their polluting products that perpetuate the climate crisis," said Mahyar Sorour, Sierra Club's director of beyond fossil fuels policy. "It is absurd that taxpayers should then also provide a blank check through subsidies, corporate giveaways, and sweetheart deals."
Sierra Club is supporting Khanna's bill, as are 350.org, Alliance for Affordable Energy, Center for Biological Diversity, Center for International Environmental Law, Climate Justice Alliance, Environment America, Friends of the Earth, Greenpeace USA, Oil Change International, Our Revolution, Oxfam America, Progressive Democrats of America, U.S. PIRG, and Zero Hour.
"We must end the billions of dollars in wasteful taxpayer subsidies to the fossil fuel industry," Sorour stressed. "Congress continues to say they are concerned about the country's deficit. Ending handouts to billion-dollar corporations that price gouge consumers and pollute our environment is a great way to reduce spending."
"We are grateful to Rep. Khanna for leading this legislation and look forward to supporting this and other types of similar legislation that hold Big Oil and Gas companies accountable," Sorour told Common Dreams.
Earlier this year, U.S. Sen. Bernie Sanders (I-Vt.) and Rep. Ilhan Omar (D-Minn.) reintroduced the broader End Polluter Welfare Act, of which Khanna is a co-lead. Its sponsors say that by closing tax loopholes and ending corporate handouts to the fossil fuel industry, that bill "would save American taxpayers up to $170 billion over the next 10 years."
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'Major Power Milestone': US Green Groups Cheer Wind, Solar Overtaking Coal
"This historic milestone marks a significant win for clean energy advocates, for ratepayers, and for people and communities across the country," said one climate leader.
Aug 14, 2024
U.S. climate advocates this week are celebrating new federal data that show wind and solar have generated more power than coal during the first seven months of 2024 and are on track to do so for the entire calendar year.
"This is the kind of news we like to see!" Food & Water Watch said of the data on social media Tuesday. "Ensuring a livable climate for all depends on us making a swift and just transition to clean energy like wind and solar."'
The group shared reporting from E&E News, which noted that "the milestone had been long expected due to a steady stream of coal plant retirements and the rapid growth of wind and solar. Last year, wind and solar outpaced coal through May before the fossil fuel eventually overtook the pair when power demand surged in the summer."
"Renewables' growth has been driven by a surge in solar production over the last year," the news outlet continued. "The 118 terawatt-hours generated by utility-scale solar facilities through the end of July represented a 36% increase from the same time period last year, according to preliminary U.S. Energy Information Administration figures. Wind production was 275 TWh, up 8% over 2023 levels. Renewables' combined production of 393 TWh outpaced coal generation of 388 TWh."
Sierra Club executive director Ben Jealous said in a statement Wednesday that "wind and solar energy has long been the most cost-effective choice for utilities, but now it has also outpaced coal generation as the top source of energy, further demonstrating that clean energy is critical to a reliable and affordable grid."
"This historic milestone marks a significant win for clean energy advocates, for ratepayers, and for people and communities across the country that simply want to breathe clean air, drink safe water, and worry less about climate disasters like floods and wildfires," Jealous continued.
"For decades, the Sierra Club has fought to move America Beyond Coal and onto a clean, reliable, and affordable grid," he added. "To date, the Beyond Coal campaign has secured the retirement of 385 coal plants and counting, and on August 16th, we celebrate the two-year anniversary of the Inflation Reduction Act, which made historic investments in clean energy and clean energy jobs. Together, families across the country are saving money, enjoying good paying jobs, breathing clean air, and drinking safe water."
Along with celebrating the federal legislation signed in 2022 by President Joe Biden, Sierra Club highlighted a state law signed the previous year by Democratic Illinois Gov. JB Pritzker.
"Illinoisans should be proud of the work we've done to close our largest coal plants and leverage the power of clean energy to drive economic growth while reducing pollution that's harmful to public health and our planet," said Jack Darin, director of the Sierra Club's state chapter. "Thanks to the Climate and Equitable Jobs Act of 2021, Illinois workers are now building the clean energy that is replacing old, dirty fossil fuels and bringing a brighter future to communities across our state."
Celebrations over the "major power milestone" come as Americans prepare for a November presidential election in which Democratic Vice President Kamala Harris and Minnesota Gov. Tim Walz—who are endorsed by a range of climate groups—are set to face former Big Oil-backed former Republican President Donald Trump and U.S. Sen. JD Vance (R-Ohio).
During an April event in Florida, Trump told fossil fuel executives that if they invested just $1 billion into his campaign, he would gut the Biden-Harris administration's climate regulations. The Washington Postreported Tuesday that billionaire Continental Resources founder then "called other oil executives and encouraged them to attend fundraisers and open their wallets."
While Hamm is reportedly sharing Big Oil's priorities with the Trump-Vance team, their approach can be summed up by a phrase they've said on the campaign trail: "drill, baby, drill."
Although the Republican candidates have tried to distance themselves by the Heritage Foundation-led Project 2025, the right-wing policy agenda—crafted by many Trump allies—has also alarmed climate campaigners.
Noting the new energy data, Antonia Juhasz, a senior researcher on fossil fuels at Human Rights Watch, said Tuesday: "This transformation is due in large part to federal government policy which has specifically incentivized renewable energy development and deployment and increased regulation on the harms of fossil fuels. All of which are specifically targeted for removal in Project 2025."
As Common Dreamsreported earlier Wednesday, an analysis from the think tank Energy Innovation shows that a GOP administration implementing the Project 2025 plan would increase U.S. greenhouse gas emissions by 2.7 billion metric tons by 2030 compared to the current trajectory.
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