Four major banks have made financial commitments totaling $5.5 trillion to invest in renewable energy and decarbonization over 10 years following the UN’s COP27 summit, at which negotiators estimated that $6 trillion per year would be necessary for reaching net zero emissions by 2050.
JPMorgan Chase has pledged $2.5 trillion, and Citigroup, Barclays, and HSBC have each committed to $1 trillion. The banks are providing capital to firms that show innovative measures to reduce climate change, financing green projects, and advising clients on the transition to net zero.
Barclays, for instance, announced it will invest in climate-tech start-ups through its Sustainable Impact Capital portfolio. The $1 trillion pledge will address green mortgages, sustainable financing structures, and financing for renewable energy firms, according to the online publication Carbon Credits. The bank said it will invest in decarbonization strategies aimed at the energy, power, real estate, and transportation industries.
HSBC, Europe’s largest bank, updated its climate policy, committing to cease lending to and financing new oil and gas fields or other such fossil fuel projects. The bank will, however, continue to service existing fossil fuel projects “in line with current and future declining global oil and gas demand,” according to a statement.
JPMorgan’s commitment will address long-term solutions, the bank said in 2022, and Citi’s fund will tackle renewable energy and clean technology, green buildings, and sustainable architecture and land use, according to Carbon Credits.