Climate change is no longer profitable: Wall Street and major investors are pulling out of traditional green policies.
Posted: Jan 09, 2025
- Several major U.S. banks have recently left the Net-Zero Banking Alliance, including Goldman Sachs, Wells Fargo, Citi, Bank of America, Morgan Stanley, and JPMorgan
- Reasons for leaving the alliance are not clear, but some media outlets suggest pressure from Republican politicians may have played a role
- Republicans have criticized environmental, social, and governance (ESG) policies, accusing them of limiting access to fossil fuels
- Banks are facing a balancing act between conservative criticism in the U.S. and demands from progressive investors for green financing
- Some institutions, like Bank of America and Citi, will continue promoting green financial products despite leaving the NZBA
- EU regulations on climate risks are becoming stricter, prompting some banks to focus on compliance and potentially explore nuclear energy for long-term energy security
- The decision to leave the alliance reflects broader tensions between political demands, but nuclear energy could play a role in the energy transition amid growing electricity demand and concerns about energy security
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