J.P. Morgan rejects energy transition finance framework (2024)
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J.P. Morgan Chase & Co., the largest bank in the country, stated it would not create a transition finance framework to identify, classify, and capitalize companies that say they play a role in the transition from fossil fuels to a post-carbon energy environment. J.P. Morgan's decision differs from that of many big banks and Wall Street firms that employ or intend to employ transition finance frameworks.
According to Bloomberg:
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Linda French, JPMorgan’s global head of sustainability policy and regulation, says it’s far from clear that calling something a transition asset will unlock capital. Ultimately, she says, the approach ignores the fact that investors are less concerned with definitions and more interested in proof that capital allocations yield results. “To state what should be obvious, finance will only move when there’s an economically viable business case,” French said in an interview. “Taxonomies and disclosure frameworks on their own do nothing to finance flows, and even risk becoming a distraction.” … “Fundamentally, it’s a rehash of the green finance conversation: Once you’ve defined relevant economic activities, then finance will begin to flow to those activities,” she said. As an approach, it downplays the fundamentals of financial logic, she said.[1] |
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Footnotes
- ↑ Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
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