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JPMorgan Chase Commits to More Clean Energy and Less Coal, Oil and Gas

Coal News - Published on Wed, 26 Feb 2020

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During its Investor Day, JPMorgan Chase announced a slew of clean energy commitments while also placing restrictions on any further coal and Arctic oil and gas funding. It committed USD 200 billion to advance the objectives of the United Nations Sustainable Development Goals, including USD 50 billion toward green initiatives that also fulfill the 2017 clean financing target. The firm aims to increase its sustainable development financing commitment each year.

To support the USD 200 billion effort, the firm is expanding its capacity and capabilities by
Launching the JP Morgan Development Finance Institution, which focuses on scaling up finance for developing countries
Establishing an Environmental Social and Governance Solutions group to advise clients on reducing their carbon emissions and respond to increased interest in ESG investing
Assembling a new Energy Transition Team to provide strategic and financial advice to corporate clients on M&A transactions that support their carbon optimization objectives
Investing in ESG expertise, including publishing ESG research and creating ESG fixed income indices.

To support the market demand for and transition to cleaner sources of energy, the firm is expanding financing restrictions on certain activities to include
Not providing lending, capital markets or advisory services to companies deriving the majority of their revenues from the extraction of coal, and by 2024, phasing out remaining credit exposure to such companies
Not providing project financing or other forms of asset-specific financing where the proceeds will be used to develop a new, or refinance an existing, coal-fired power plant, unless it is utilizing carbon capture and sequestration technology Not providing project financing or other forms of asset-specific financing where the proceeds will be used for new oil and gas development in the Arctic

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Posted By : Nishith Sharma on Wed, 26 Feb 2020
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