FFF would mandate the Federal Reserve (Fed) to require the largest banks, those with more than $50 billion in assets, to submit and follow a plan for achieving zero financed emissions by 2050. The plan would have the following elements:
- No financing of new or expanded fossil fuel projects after 2022
- No financing for thermal coal projects or companies after 2024
- No financing of any fossil fuel projects after 2030
- A 50% reduction in the bank’s financed emissions by 2030
Environmental Justice: The bill also mandates that the Fed require the plans to account for the needs of the communities who are suffering the most from environmental racism.
When activists become effective on financial issues, a backlash occurs in the political realm. A group of Republican state treasurers formed the State Financial Officers Foundation, with support from Heritage Foundation, the Heartland Institute and the American Petroleum Institute (including Koch support). The Foundation advises state treasurers to cut ties to financial institutions such as Goldman Sachs, JPMorgan and Wells Fargo who are reducing (but not ending) investments in fossil fuel projects. (Source: New York Times, August 5, 2022) This kind of action reflects the polarization of politicians on the climate issue, which should be bipartisan.
If you want to take action on the FFF Act, click on https://act.350.org/call/apr-22-ff-finance-act/?source=em20220420-2-30-subs&akid=200657.958167.0JWbJp