Guest essay by Eric Worrall
JP Morgan wants the world to act on climate change – but critics claim they are still “funding fossil fuel”.
JP Morgan economists warn of ‘catastrophic’ climate change
By Tom EspinerBusiness reporter, BBC News
In a hard-hitting report to clients, the economists said that without action being taken there could be “catastrophic outcomes”.
The bank said the research came from a team that was “wholly independent from the company as a whole”.
Climate campaigners have previously criticised JP Morgan for its investments in fossil fuels.
The firm’s stark report was sent to clients and seen by BBC News.
While JP Morgan economists have warned about unpredictability in climate change before, the language used in the new report was very forceful.
“We cannot rule out catastrophic outcomes where human life as we know it is threatened,” JP Morgan economists David Mackie and Jessica Murray said.
However, JP Morgan itself has been strongly criticised in the past for heavy investment in fossil fuels.
The Rainforest Action Network released a 2019 report claiming that the US banking giant provided the most fossil fuel firm financing of any bank in from 2016 to 2018.
Rupert Read, an associate professor of philosophy at the University of East Anglia, and a spokesperson for campaign group Extinction Rebellion, said that the bank is “taken by some to be the largest fossil fuel funder in the world.”Read more: https://www.bbc.com/news/business-51581098
JP Morgan were early carbon trading enthusiasts in 2008, though it all went a bit sideways in the wake of the GFC, when carbon prices in Europe collapsed thanks to all the EU member state governments trying to give their own national champions an unfair advantage, by issuing too many carbon credits.
If the world does act on climate change, banks like JP Morgan stand ready to do their bit, though this time around they seem to be backing a centralised carbon tax.