Jamie Dimon says stopping oil and gas funding would be America’s road to hell

Do you want to stop new oil and gas financing? ‘That’s the road to hell for America.’


— Jamie Dimon

JPMorgan Chase CEO Jamie Dimon assured lawmakers that his bank has no intention of stopping funding growth in the oil patch.

Representative Rashida Tlaib, Democrat of Michigan, asked Dimon, who joined other top banking executives on Capitol Hill on Wednesday, to answer ‘yes’ or ‘no’ to a series of questions. That included whether JPMorgan JPM,
-1.14%
it has a policy against financing new oil and gas products.

“Of course not, and that is the road to hell for America,” said Dimon, whose bank is the largest provider of US loans and other capital to the energy sector.

Sixty banks profiled in a report released earlier this year contributed $185.5 billion last year alone to the top 100 companies to expand oil CL00,
-0.19%
and the gas sector. The report came from a group of environmental non-profit organizations in its 13th annual issue of Banking on Climate Chaos.

The Biden administration has used its slim congressional majority to pass legislation in addition to executive orders for a transition toward alternative energy that is intended to reduce US carbon emissions by 50% by 2030 and reach net zero by 2050. The sector gives energy about 40 contributions. % of CO2 trapped global warming. Three-quarters of those emissions come from the six largest economies, including the US and China at the top, the World Bank says.

Republicans and some business executives argue that while ICLN is solar, wind and nuclear,
-3.15%
can take on more of the nation’s energy needs, conventional oil and gas must play a role because of high energy costs and to help sustain US energy independence.

The banks that scrutinized the release said that in the six years since the adoption of the Paris Agreement, which set a target for global warming of no more than 2 degrees Celsius and, ideally, 1.5 degrees, the world’s 60 largest banks have financed fossil fuels with $4.6 trillion. in loans and other capital.

The report showed that overall fossil fuel financing is still dominated by four US banks, with Dimon’s JPMorgan Chase, Citigroup C,
-1.62%
WFC Wells Fargo,
-1.77%
and Bank of America BAC,
-1.96%
together they represent a quarter of the fossil fuel financing identified in the last six years.

On Wednesday, lawmakers further questioned bank CEOs about inflation and home ownership on the same day the Federal Reserve delivered another interest rate hike. Capitol Hill appearances for the banking executives were deemed unnecessary by Republican lawmakers. The CEOs largely pushed back on capital needs and praised their role in keeping capital flowing as the economy navigates difficult territory as the world works its way back from the worst of the COVID-19 pandemic.

The CEOs will testify before the US Senate Banking Committee on Thursday.

The Associated Press contributed.

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