J.P. Morgan Chase, the world’s largest financier of fossil fuel companies – who has unashamedly contributed $75 billion to fund pipeline projects, fracking, and Arctic oil and gas exploration since the forging of the Paris climate agreement in 2015 – is aware that its actions are fueling climate change. How do we know? A pair of J.P. Morgan economists, David Mackie and Jessica Murray, published a report entitled “Risky Business: Climate and the Macroeconomy,” which warns bank clients about dangerous global conditions and extreme weather events that could result from the continued extraction of fossil fuels.
Not only does the report caution clientele and place the fate of the world in their decisions, but it also implicates the bank’s investment activities in the potentially catastrophic events of climate change. Clearly, there is a growing concern among major Wall Street institutions about the reputational and financial risks of persistent funding of carbon-intensive industries, such as gas and oil.
Rupert Read, an Extinction Rebellion spokesperson, was the one who obtained this inspiring report and shared it with news outlets and across social media. On Twitter, he even points out the discrepancy of such “radical truth-telling” coming from J.P. Morgan economists. Meanwhile, the report rouses hope that other financial service industries might take notice and realize it’s not only a minority of extremists who believe bold climate action may be necessary.
JP Morgan economists warn of 'catastrophic' climate change. "We cannot rule out catastrophic outcomes where human life as we know it is threatened," they said. Hardly a bank you could call communist now, is it?
https://t.co/zbZMvAqOqk— Dom Phillips (@domphillips) February 21, 2020
According to the authors of the report, if things remain as they are:
…it would likely push the earth to a place that we haven’t seen for many millions of years, [with outcomes that might be impossible to reverse.] Although precise predictions are not possible, it is clear that the Earth is on an unsustainable trajectory. Something will have to change at some point if the human race is going to survive…We cannot rule out catastrophic outcomes where human life as we know it is threatened.
The JP Morgan economists cite extensive academic literature and forecasts by the Intergovernmental Panel on Climate Change (IPCC) and the International Monetary Fund (IMF) to show how if the status quo is kept in place, Earth is expected to reach a temperature 3.5° above pre-industrial levels. The authors write it is:
…likely the [climate] situation will continue to deteriorate, possibly more so than in any of the IPCC’s scenarios.
The climate crisis will impact human health, the survival and migration of other species on the planet, water stress, and the world economy, they note. If activities like the ones funded by J.P. Morgan continue to release fossil fuels into the atmosphere, and we fail to move away from this global system that scientists agree are causing the planet to warm, then:
…it would likely push the Earth to a place that we haven’t seen for many millions of years. It is clear that the Earth is on an unsustainable trajectory. Something will have to change at some point if the human race is going to survive.
This report comes merely weeks after Jim Cramer, the CNBC host, announced:
[Fossil fuel investments are] in the death knell phase [and that] the world’s turned on the industry as it did on tobacco as understanding grew about the risks of smoking.
Bill McKibben, the co-founder of 350.org, suggests:
[The economists] might want to talk with the Chase bankers who are guaranteeing [climate catastrophe] will happen by lending oil companies endless cash.
Activist Becky Brunton said the report is proof that those with the power to stop supporting fossil fuel projects are entirely aware of the damage their investments are doing. Brunton tweeted:
They know. They ALL know. But the now (profits) outweigh the future (earth).
They know.
They ALL know.
But the now (profits)
outweighs
the future (earth).#ClimateCrisis https://t.co/CKLCYV7ALe— BeckyIB (@BeckyIB) February 21, 2020
Now while some positive changes are occurring at the micro level – such as shifts in behavior of some investors, companies, and individuals – it likely won’t be enough without the involvement of the financial and fiscal authorities as their influence is monstrous. The 33 most powerful financial institutions (JP Morgan included) have provided approximately $1.9tn to the fossil fuel sector between 2016 and 2018, according to an analysis by the US-based environmental organization Rainforest Action Network. These institutions are the root of the problem.
