This is an excerpt from EERE Network News, a weekly electronic newsletter.
Three Major Banks to Assess Climate Risks in Utility Financing
Three leading Wall Street banks—Citigroup Inc., JP Morgan Chase, and Morgan Stanley—have established climate change guidelines for addressing and evaluating the risks in financing electric power projects. Called "The Carbon Principles," the new guidelines call for "enhanced diligence" in evaluating electric power industry borrowers in terms of their use of energy efficiency; renewable and low-carbon distributed energy technologies; and conventional and advanced generating technologies. And while the banks haven't said that they won't finance coal plants anymore, they have warned power companies seeking financing for such technologies that the banks will follow their enhanced diligence process and "factor these risks and potential mitigants into the final financing decision." See the Citigroup press release.