ESG & Investing

Banks Need Even Bigger Low-Carbon Pivot to Avert Climate Crisis

JPMorgan and Wells Fargo are among lenders falling short in making transition to clean energy, according to BloombergNEF report.

A man walks past solar panels at a solar carport. 

Photographer: Simon Maina/AFP/Getty Images
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Banks have a long, long way to go on climate change.

That's the takeaway from a BloombergNEF report that looks at the level of financing that banks are pouring into the energy transition. According to BNEF researchers, the ratio of clean-energy lending and equity underwriting relative to fossil fuels needs to hit 4 to 1 by the end of the decade if the planet is to avoid the worst ravages of climate change as laid out in the Paris Agreement of 2015.