House Democrats just unveiled the Fossil Free Finance Act which would stop Wall Street from destroying our planet by preventing them from bankrolling the fossil fuel industry.
According to Common Dreams, the bill would require the Federal Reserve to mandate, via regulation or guidance, that all banks and other financial institutions with more than $50 billion in assets phase out the funding of coal, oil, and gas extraction as well as industries linked to deforestation, in accordance with science-based targets for slashing carbon pollution.
The bill, sponsored by Rep. Mondaire Jones, Rep. Rashida Tlaib, Rep. Ayanna Pressley, states there will be alignment with our obligations under the Paris Climate Agreement and the emissions financing reduction targets below:
- 50% reduction in financed emissions by 2030
- 100% reduction in financed emissions by 2050
- Prohibits new or expanded fossil fuel projects after 2022
- Prohibits the financing of all fossil fuel projects after 2030
- Prohibits thermal coal financing after 2024
“The climate crisis poses an existential threat to every aspect of our society, including our economy and financial system. As climate disasters grow in frequency and intensity, we can no longer afford to stand by while big banks and other financial institutions invest trillions in the companies fueling the climate crisis,” says Jones.
“Our planet is burning. My residents deserve to breathe clean air. For over a decade, Wayne County, Michigan has not met the Clean Air Act standards, leaving us with high rates of asthma and respiratory illnesses,” says Tlaib.
“For too long, our federal government has looked the other way while our nation’s largest banks bankroll the dirtiest fossil fuel projects, exacerbating the climate crisis and setting us up for a massive, climate-induced economic collapse. That must change,” says Pressley.