Climatewire | Industry documents show that the Wall Street institutions are preparing for a great future of global warming, which exceeds the agreed temperature limits more than 190 countries a decade ago.
The recognition of major banks that the world is likely to fail to prevent a temperature of more than 2 ° C above pre -industrial levels in the mysterious reports of clients, investors and members of the Trade Society. Most of them were published after President Donald Trump, who seeks to cancel federal policies that support clean energy during Shipping turbine to produce oil, gas and coal – The main sources of global warming.
Recent reports – of Morgan Stanley, JPMorgan Chase and the International Finance Institute – show that Wall Street has determined that the temperature goal has actually died and described how higher financial institutions plan to continue working profitable with high temperatures and damage.
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“We are now expecting a 3 -degree world,” Morgan Stanley analysts wrote, noting “the recent setbacks of global carbon removal efforts.”
The amazing conclusion indicates that the bank believes that the planet is It is heading towards the future Where the severe drought and the failure of the harvest becomes widespread, the sea level rise is measured by feet instead of inch and tropical areas of the heat and extreme humidity for weeks at a time that will bring fatal risks to people working in the open air.
The Paris International Agreement, from which the United States withdraws under Trump, aims to reduce the average temperature to much less than 2 ° C. Scientists have warned that he exceeded 1.5 degrees – the threshold of the world’s breach for the first time last year – could lead to this The effects of the intense climate are increasinglySuch as the disappearance of the ecosystems of coral reefs on which hundreds of millions of people depend to protect the increase in food and storms.
Moral Moral Mortan Stanley’s expectations were placed in a worldly research report on the future of air conditioning shares, which was presented to customers on March 17. Analysts can exceed 3 percent to 3 percent until 2030.
“The political environment, so some of them correspond to that,” said Gotam Jin, a former investment banker who is now a major researcher at Columbia University. “But often it is a rational commercial decision.”
New warming estimates come as heat besieged gases Continue to rise in the world As international obligations to reduce the burning of oil, gas and coal responsible for The largest part of the emissions stopped. At the same time, the huge is like Wales Vargo Returning their previous climatic pledges and Exit from the net banking allianceA United Nations -backed group that encouraged members to reduce their emissions in line with the Paris Agreement.
Morgan Stanley, who mocked October Climate lending targetsHe refused to comment.
The bet that is likely to be catastrophic is a recognition of the current emissions path and a smart political movement in the second Trump era, according to Jane.
He said, “No one wants to look at him as inconsistent with the” pro -fuel energy policy in the administration, “he said. “These banks are companies, so they must consider the risk they have in their wallets and the opportunities they see in the most likely environment.”
“Re -calibration of goals”
Morgan Stanley’s explicit evaluation of the air conditioning market follows a commercial association in February, in which industrial officials argued that the financial sector needs a coordinated campaign for correspondence for organizations, investors and the public that Paris goals are no longer within reach – and the banks should not expect to follow.
“The world is not on the right path to reduce the high temperature to less than 2 ° C – and reduce warming [to] 1.5 degrees Celsius is certainly not achieved. ”The International Finance Institute He wrote in a dark textQuoted from analyzes from the Energy Research Company and The Climate Action Tracker, which is environmental cooperation.
The conference said: “Financial institutions need to re -calibrate the goals to reflect that 1.5 degrees Celsius are no longer suitable as strategic goals.” “Rear concerns may arise in the absence of an alignment point between stakeholders on how to address these processes, and what criteria that you may need to be applied.”
“The banking industry can support the transition from fossil fuels to clean energy, but capital will only move” on a large scale when the economy is logical, “said Marie Kate Pinki, a spokeswoman for the International Finance Institute. It represents about 400 members Of more than 60 countries, including JPMorgan and Morgan Stanley.
JPMorgan, the world’s most valuable bank, describes investors how to assess climate risk in a detailed report published annually Since 2022.
In the last JPMorgan report, issued in late November, CEO Jimmy Damon determined the bank’s commitment to financing global transition to cleaner energy. But he also alluded to the role that Trump and other political leaders can play in slowing climate progress.
“The constructive government leadership and politics are necessary, especially on taxes, allowing energy, infrastructure, and technological innovation,” said Damon in A. Introduction to the report.
A JPMORGAN spokesman confirmed that although bank stress tests his investments using a variety of possible climate scenarios, he is still committed to abandoning its emissions by 2050, in line with the Paris Agreement.
Jin, a former investment banker, explained that smart funds expect that Jin, a former investment banker, will exceed Jin, that the smart money that is expected to exceed Jin is that smart money at the present time knows Wall Street knows how to run the numbers, and now smart money expects that two grades will exceed 2 degrees to exceed 2 degrees.
“These men do not assume blue,” he said. “They are following science.”
Repeat it from E & E. With the permission of Politico, LLC. Copyright 2025. E & E News provides basic news for professionals in the field of energy and environment.
*Editor’s note (3/31/25): Our partners at E & E News edited this sentence after publishing it to correct the description of the climate report Jpmorgan.