JPMorgan Will Finance $2.5 Trillion to Fight Climate Change
JPMorgan is America’s largest bank and it is stepping up to the plate to help fight climate change. Over the next 10 years, the bank will be providing $2.5 trillion in investment opportunities that will help the fight.
This is the largest investment opportunity given by any bank in the world. The company wants to not only say the right thing but lead by example. And this move certainly solidifies that incentive.
This will help give both companies big and small the investments they need to make large sweeping changes that are necessary in this fight.
Fighting Climate Change and Poverty
Most of the investment opportunities are targeted at poor communities.
Even if people in these regions want to improve their community, they lack the resources to do so. This means that local small businesses will have access to these funds as well as educational institutions.
On top of this, some of the funding will go towards affordable housing. By building more environmentally friendly homes, at an affordable price, this could help communities thrive.
And these efforts are not exclusive to the United States. JPMorgan is also planning on pushing the United Nations Sustainability Development Goals on a global scale.
It’s Not Just JPMorgan, Other Banks Are Following Suit
In fact, JPMorgan is actually not the first for investing in this manner. Just last week Bank of America pledged 1.5 trillion in similar investment opportunities.
Banks in general are starting to put more pressure on companies to go green. This is due to the net-zero goal they hope to achieve by 2030. However, this doesn’t just include the emissions released from the banks themselves, but also for who they give investments.
And it’s not even just banks, Mastercard recently unveiled a new carbon calculator so people can estimate how many emissions their shopping habits release.
The financial world is moving collectively in the right direction.
Thus, it will become much harder for companies to get the investments they need for emission releasing projects in the future. Yet, those types of investments are not gone quite yet.
Still Supporting Fossil Fuel Investments
While they are moving in the right direction, the company will still be supporting fossil fuel investments.
JPMorgan acknowledges the climate crisis but believes that we cannot just stop using fossil fuels. It is a process, and properly maintaining them while green infrastructure is built, is still critical to the world.
If these companies cannot receive proper funding, it will ultimately mean they have to cut costs, which may cost thousands of jobs. It may also mean buying cheaper equipment that will have a bigger impact on the environment.
Instead, by supporting green projects and technology financially, it will help make them more attractive to the current market.
The Green Transition is Underway
Without a doubt, the world is starting to transition towards a greener future. While there is still a lot of work to reach that goal, many nations and companies are voluntarily moving in that direction.
And in reality, they don’t have much of a choice. The people have spoken, and a green future is what they desire.
Robert has been following and writing about environmental stories for years at GreenGeeks. He believes that highlighting environmentally friendly practices can help promote change in every household.
