Update – US Banks Still Investing Heavily in Coal

Banktrack.org released an updated review of various financial institutions’ holdings in dirty coal energy. Green America promoted a scorecard earlier this year outlining the banks that were the strongest supporters of coal extraction and electricity production. The lowest marks went to Wells Fargo (D+), Bank of America (D-), Citi (F) and Chase (F). Of course, each of these banks has committed to reduce the carbon impact of its investing and to increase investment in clean energy, but that has not weakened their support of coal. Based on Banktrack.org’s latest data, not much progress has been made.

CoalJP Morgan Chase (scoring the lowest among the coal-loving US banks) remains one of the largest offenders, providing $27 billion in coal financing from 2005 to 2014. Other American institutions, including Citi, Bank of America, Morgan Stanley, Goldman Sachs, and Wells Fargo are also featured in the top 20, securing the USA’s spot as one of the largest financers of the global coal industry. The USA contributed 23% of global coal financing between 2011 and 2013, second only to China’s 28%.

You can read all about the methodology used in the report here to get an idea of just how pervasive coal power is in the financial world. Coal is the single largest source of carbon dioxide emissions attributable to humans, and has been the fast growing energy source worldwide over each of the past ten years. The international Energy Agency asserts that 44% of global carbon emissions from fossil fuels come from coal, about 7.9 billion tons annually.

For an example of the destructive nature of the coal industry, we need not look further than the Appalachian Mountains, running from New England to the Southeast. Every financial institution mentioned by the report has a stake in coal mining operations in Appalachia, where mountaintop removal is the preferred method of production. Ancient mountains and the ecosystems they harbor are systematically blasted and carved away to access the coal below the surface. Mountaintop removal threatens not only the wildlife and ecosystem services endemic to this region, but the surrounding communities and the global climate as well. Similar destruction is happening worldwide, and accelerates as the demand for energy grows.

Without a way to viably and effectively provide energy to billions in the developing world, coal and its enormous associated emissions will remain the primary source and continue to grow globally with the help of large financial institutions. Even as the US and China have entered into an historic agreement on climate, they are both still financing coal overall. As a consumer of financial services, however, you have the opportunity to let these megabanks know that you reject their support of dirty energy. By Breaking Up with your Megabank, you can leave the coal financiers behind and support a local financial institution that works to serve communities and the environment.

US and China Set Climate Goals Together

http://mrg.bz/3auKnaBig news comes from Beijing last week, where Chinese President Xi Jinpeng and US President Barack Obama publicly announced an agreement of intention to collaborate in reducing global carbon emissions by 2030. The two leaders struck the deal amidst broader economic negotiations, in which the US will plan to emit 26-28% less CO2 in 2025 than it did in 2005. In turn, China will plan to stop further growth of their emissions by 2030. President Xi also announced the goal to have solar and wind comprise 20% of china’s power supply by 2030.

The two nations are the largest single emitters of carbon dioxide, the greenhouse gas mostly responsible for changes in the climate. To reach the globally agreed upon safe limit of 2o Celsius average temperature increase before the end of the century, total annual emissions should stay below the threshold of 30 billion tons by 2030. Even if the US and China adhere to the goals outlined in the recent deal, they will have already emitted more than half of this amount (about 16 billion tons).

The remaining 14 billion tons per year will need to be split amongst the rest of the world, including the developed nations of the European Union and rapidly growing economies like India, Indonesia, and Brazil. Fossil fuels remain a key driver of growth in developing countries, and the agreement between the two largest producers of carbon pollution seeks to set the precedent of taking climate change seriously.

Carbon emissions reduction is well within reach of the two largest polluters. According to the Washington Post, “to meet its target, the United States will need to double the pace of carbon pollution reduction from 1.2 percent per year on average from 2005 to 2020 to 2.3 to 2.8 percent per year between 2020 and 2025.” China’s prescription is a bit different. The country “must add 800 to 1,000 gigawatts of nuclear, wind, solar and other zero-emission generation capacity by 2030 — more than all the coal-fired power plants that exist in China today and close to the total electricity generation capacity in the United States.”

Social Media Response to the deal has carried an excited tone from climate activists all over the globe. The deal is lauded by environmentalists as a significant step towards a global climate agreement. Green America sees the agreement as an historic step forward, especially due to China’s proactive embrace of carbon reductions. The goals set out in the agreement, however, could certainly be more robust and achieve greater reductions by 2030.

It is important to remember that the agreement between the two countries is not binding, but a statement of intention to continue addressing carbon emissions and climate change in a serious manner. The US has already taken ambitions measures to confront the problem of carbon pollution, most notably through the EPA regulations of new and existing power plants proposed earlier this year. A newly Republican-controlled Congress will likely attempt to halt or otherwise impede efforts to reduce emissions (opponents of carbon emission reductions argued that the US shouldn’t act unless China does as well), but China’s willingness to step up and announce their intentions to work on the task themselves has taken considerable steam from their arguments. The deal has the potential to create an international momentum that could truly shift the global understanding of the climate crisis. As more major players consider their impact on the environment, downplaying or outright denying the impacts to natural and economic systems becomes a politically undesirable move.

Indeed, the way we power the modern world needs to change in profound ways, and the US-China deal is a powerful first step. It takes a collective effort to make a difference, and as Americans we can continue to urge our leaders to support policies that advance the production and implementation of renewable energy sources as well as tighter regulations for sources that pollute.

Now is the time to rapidly accelerate clean energy and energy efficiency technologies in the US. We’re calling on you to urge your representatives to cosponsor the Clean Energy Victory Bonds Act of 2014, a bill that seeks to provide up to $50 billion new financing mechanisms for renewable energy and energy efficient technologies in the US, while giving every American a safe investment. And support the re-introduction of this legislation in the new Congress in January.

CEVBs at the Congressional Renewable Energy Expo

This July, Green America attended the Congressional Renewable Energy Expo on Capitol Hill to tell policy makers and clean energy industry leaders all about the Clean Energy Victory Bonds Act of 2014. The bill, which has been introduced to the House of Representatives by Zoe Lofgren (D-CA), seeks to provide new financing for clean energy projects including wind, solar, and geothermal, as well as home and commercial energy efficiency technologies. The Environmental and Energy Study Institute (EESI) stopped by our booth to ask us a few questions about CEVBs. Watch their interview below, read more about the bill here, and contact your Representative and urge him or her to support clean energy in the US.

President Obama: “Invest in What Helps, Divest from What Harms.”

This past weekend, President Obama delivered a commencement speech to UC Irvine, in which he urged the graduating class to take challenges related to climate change seriously.  In his address, the President called out members of Congress for resisting efforts to address climate change, asserting that there was no substance behind some peoples’ rejection of the scientific consensus on the issue.

The President used his speech to announce a $1 billion dollar fund, the National Disaster Resilience Competition, to be made available to states having endured a  national disaster between 2011 and 2013 for the purpose of rebuilding infrastructure to better withstand shocks from the environment.

He also stated that this graduating class’s generation, which includes the largest age group in the country (22), faces many challenges and opportunities in dealing with this issue ahead.

“We need scientists to design new fuels.  We need farmers to help grow them.  We need engineers to invent new technologies.  We need entrepreneurs to sell those technologies. We need workers to operate assembly lines that hum with high-tech, zero-carbon components.  We need builders to hammer into place the foundations for a clean energy age.  We need diplomats and businessmen and women, and Peace Corps volunteers to help developing nations skip past the dirty phase of development and transition to sustainable sources of energy…You need to invest in what helps, and divest from what harms.”

The President’s address should serve as a reminder that we face the challenges posed by climate change together. While there are many steps we can take individually to reduce our carbon footprint and increase resilience to climate change, we also need to act on a large scale. Clean Energy Victory Bonds are a coordinated effort we can make by collectively investing in the technologies that will power the future without releasing carbon dioxide into the atmosphere. By calling your representative and urging him or her to sponsor the CEVB Act of 2014, we can make significant progress towards funding clean energy technologies, reducing our carbon footprint, and increasing our long-term resilience to the effects of a changing climate on our towns, cities, and our country as a whole.  Clean Energy Victory Bonds already have 28 co-sponsors (and growing) – reach out to your Rep today and help keep the momentum going!

U.N. Reports on Climate Change Mitigation

The latest installment of the U.N’s fifth Climate Assessment Report explores what we must do in order to lessen the negative impacts of a changing climate. 

As our understanding of climate change continues to develop, we hear more and more about a few particularly important numbers: to ensure that average global temperature increase does not exceed 2oC by the year 2100, we mustn’t allow the atmospheric concentration of carbon dioxide to exceed 350 ppm (parts per million). Currently, the atmospheric concentration of CO2 is about 400ppm, with an additional 2ppm emitted each year. Accounting for population and economic growth, CO2 concentrations are projected land between 750 and 1,300 ppm by the end of the century. To offset the emissions resulting from this growth, we need to substantially cut emissions by 2050 (by 40-70%), and to completely cease emissions by 2100.

The Intergovernmental Panel on Climate Change, or IPCC, released its third working group summary this weekend in Berlin, Germany, as a part of its fifth Climate Assessment Report. Previous working group summaries have tackled the physical scientific aspects of changing climate systems, as well as impacts, adaptations, and vulnerabilities for people across the globe. The latest installment examines the topic of mitigation: the “human intervention to reduce the sources or enhance the sinks of greenhouse gases.”

There are currently great efforts underway to achieve both goals of greenhouse gas mitigation. Forests are one of our most valuable carbon sinks; trees absorb CO2 from the atmosphere and use energy from the sun to convert the gas into glucose in a process called photosynthesis. Across the planet, reforestation projects aim to preserve the ecosystem services that trees offer.

www.freefoto.com But covering the globe in trees is not enough to keep CO2 out of the atmosphere, especially when economic growth depends on burning the fossil fuels that emit so much of the gas. Between 2000 and 2010, the IPCC reports, the “contribution of economic and population growth to CO2 emissions has outpaced emission reduction from improvements in energy intensity.” The panel cites the increased use of coal as a cheap, abundant energy source in developing nations as the cause of the reversal of the long-standing trend of gradual decarbonization of the world’s energy supply.

With ever-increasing demand for modern goods and services in countries where the population is growing at a rapid pace, restricting fossil fuels would cause significant immediate damage to highly vulnerable communities. The only way to reduce the amount of CO2 emitted by our energy infrastructure is to update it – to find a viable substitute that can meet the demands of a world literally packed with people without contributing to carbon emissions. The developing world is waiting for wealthy countries to lead the way, starting with the U.S. And as a country that already has the technology available to make this possible, the remaining impediments to clean energy are largely political. The United States needs a new approach to make financing available for the expansion of solar, wind and other clean energy sources.

That’s why Green America is promoting the Clean Energy Victory Bonds Act of 2014. Sponsored by US Representatives Zoe Lofgren and Doris Matsui, the CEVB Act of 2014 would issue United States Treasury bonds that would be available to all Americans for purchase. The funds raised from the sale of the bonds would go directly towards tax credits that clean energy industries, like wind and solar, as well as energy efficiency projects, depend upon. You can do your part to make the long-term investments needed to ensure that we won’t have to burn fossil fuels for much longer. Call your Representative, tell him or her you want to invest in a clean energy future, and urge him or her to co-sponsor the bill today.

Clean Energy Victory Bonds Act of 2014 Introduced by Reps Lofgren & Matsui

Today, US Representatives Zoe Lofgren and Doris Matsui, along with 15 original co-sponsors, introduced the Clean Energy Victory Bonds Act of 2014. The bill is now before the House of Representatives, and not a moment too soon.

ImageThe Clean Energy Victory Bonds Act of 2014, or CEVB for short, is modeled after one of the most successful fundraising efforts in US history. In World War II, millions of Americans purchased over $185 billion (over $2 trillion in today’s dollars) worth of Victory Bonds issued by the United States Treasury, in order to fund the war effort. The bonds allowed citizens to invest directly in the materials and technologies needed to achieve victory in one of the most destructive wars in human history.

Today, however, we face different problems – a rapidly changing climate, rising sea levels, and more intense weather events like Hurricane Sandy put our infrastructure and economy at risk. Our outdated energy systems continue to inefficiently burn fossil fuels, and the extraction of these fuels continues to degrade ecosystems across the planet. Renewable energy and energy efficient technologies are a promising solution to these crises, but a lack of funding makes them unappealing to industrial-scale investors.

The United States also risks losing its position as a clean energy leader.  China, Germany and other nations are outspending the US in the clean energy race and are already seeing the benefits of increased jobs and plentiful clean energy.

Clean Energy Victory Bonds, backed by the full faith and credit of the United States, will allow any American to invest in a clean energy future for as little as $25. The sale of the bonds is projected to raise up to $50 billion, which would leverage an additional $100 billion from private investors. The money raised would fund essential tax credits to renewable sources like wind, solar, and geothermal, as well as energy-efficiency programs. Continued support of these industries will reduce the demand for fossil fuels, reduce the amount of CO2 poured into the atmosphere, and create at least 1 million well-paying jobs that cannot be shipped overseas. With oil companies still receiving massive government subsidies, a fundraising effort of great proportions is needed to level the playing field for clean energy technologies.

If you want to invest in our nation’s energy future by purchasing CEVBs, call your Representative in Congress and tell him or her to co-sponsor the Clean Energy Victory Bonds Act of 2014. With your help, we can transition our economy from one that relies on dirty fossil fuels to a clean energy economy that provides real opportunities for our citizens, all while protecting our homes from catastrophic climate change. For more information, please visit www.cleanenergyvictorybonds.org.

New Financing for Clean Energy – Clean Energy Victory Bonds

As climate change and rising fuel costs, especially natural gas prices, generate headline news, it becomes ever more apparent that we need to invest in renewable energy. Clean Energy Victory Bonds can play a crucial role in securing the financing necessary to shift our energy sourcing to cleaner options.  This bond evokes the spirit of one of the greatest fundraising efforts in our nation’s history. During World War II, over 80% of American households bought at least one victory bond, raising the equivalent of over $2 trillion in today’s dollars. Inspired by the efforts of previous generations, the victory bond is being rebooted to face the energy challenges of the 21st century. The Clean Energy Victory Bond would support solar, wind, second generation biofuels, and energy efficiency programs needed to build the clean U.S. economy that the times require.

Green America CEO and President Alisa Gravitz speaks at a briefing on Capitol Hill, Feb 24, 2014.
Green America CEO and President Alisa Gravitz speaks at a briefing on Capitol Hill, Feb 24, 2014.

Americans are increasingly aware of just how large a challenge climate change poses to our communities, as well as the role of fossil fuels in creating this global crisis. Fortunately, the shift from dirty energy to clean sources is well underway. For example, in 2013, a new solar energy system was installed every four minutes. By the beginning of 2014, the US had installed 12 gigawatts of solar capacity, producing as much energy as 14.5 coal-fired power plants. Wind power in the United States has been rapidly increasing as well, with over 14.2 gigawatts of capacity installed since 2012. According to the American Wind Energy Association, the projects currently under construction have the potential to power 3.5 million American households, or all the homes in Iowa, Oklahoma, and Kansas combined.

Financing for clean energy like wind and solar complements these observed increases in capacity. Annual solar installation, both residential and commercial, has grown by more than 1,600% since the Investment Tax Credit was implemented in 2006. Funding for large-scale solar projects announced in 2013 reached $13.6 billion, up from $8.7 billion the previous year. Similarly, the US Wind industry has attracted nearly $90 billion of private investment into new infrastructure over the past five years. The Production Tax Credit has been instrumental in encouraging this growth – in December of 2012, wind producers installed 5.5 gigawatts of capacity as the expiration of the PTC neared.  Both wind and solar energy employ significant sections of the American workforce. Wind power currently employs more than 75,000 Americans, and for the first time ever, the US solar industry now employs more workers than the US auto manufacturing industry. [1]

While this growth is monumental in its own light, it still pales in comparison to the portion of our energy mix that fossil fuels provide. From 2002-2008, traditional fossil fuels received $70.2 billion of federal subsidies, while renewables received just $12.2 billion over the same time period. Legislators allow federal incentives like the Production Tax Credit to expire and then retroactively reinstate them, creating uncertainty in renewable energy markets. This limits growth in sectors like wind energy, and shifts support to more favorable countries like China and Germany.

The Clean Energy Victory Bond will protect the tax incentives essential to clean energy sources and energy efficiency initiatives, while simultaneously offering a reliable investment vehicle backed by the full faith and credit of the United States. By fostering these sectors of the green economy, the bill stands to create more than 1 million high-paying jobs that cannot be shipped overseas.

Thousands of Americans have already pledged to purchase the bonds once they become available, and you can too. You can also call your representative and urge him or her to support the bill once it is on the floor. We must work on both sides of the aisle to reduce our dependence on dirty, imported fossil fuels, create jobs for millions of Americans, and protect our environment with clean, American-made energy sources. As Green America’s CEO and President Alisa Gravitz put it, “Clean energy is joyfully bi-partisan.” The only side you need to choose here is the one that leads the US into the future running on clean, safe, domestic power!


[1] U.S. Energy Information Administration and Solar Foundation