Global Banks, Led by JPMorgan Chase, Invested $1.9 Trillion in Fossil Fuels Since Paris Climate Pact

A report published on March 20, 2019 names the banks that have played the biggest recent role in funding fossil fuel projects, finding that since 2016, immediately following the Paris Agreement’s adoption, 33 global banks have poured $1.9 trillion into financing climate-changing projects worldwide.

One inescapable finding of this report is that JPMorgan Chase is very clearly the world’s worst banker of climate change,” the report, titled “Banking on Climate Change,” found. “The race was not even close: the $196 billion the bank poured into fossil fuels between 2016 and 2018 is nearly a third higher than the second-worst bank, Wells Fargo.”

“A half-dozen environmental groups — Rainforest Action Network, BankTrack, Sierra Club, Oil Change International, Indigenous Environmental Network, and Honor the Earth — authored the 2019 report, which was endorsed by 160 organizations worldwide. It tracked the financing for 1,800 companies involved in extracting, transporting, burning, or storing fossil fuels or fossil-generated electricity and examined the roles played by banks worldwide.” Read more . . .

Can Soil Microbes Slow Climate Change?

“With global carbon emissions hitting an all-time high in 2018, the world is on a trajectory that climate experts believe will lead to catastrophic warming by 2100 or before. Some of those experts say that to combat the threat, it is now imperative for society to use carbon farming techniques that extract carbon dioxide from the air and store it in soils. Because so much exposed soil across the planet is used for farming, the critical question is whether scientists can find ways to store more carbon while also increasing agricultural yields.”


“Johnson asserts that if his approach were used across agriculture internationally, the entire world’s carbon output from 2016 could be stored on just 22 percent of the globe’s arable land. He says that would provide net benefits of $500 to $600 per acre rather than net costs, if credits are provided for carbon capture and related benefits are counted, such as reduced irrigation and increased soil fertility.” Read more . . .

REPORT: A New World: The Geopolitics of the Energy Transformation

A 94 page report by the International Renewable Energy Agency (January 2019)

Excerpts from the IRENA report:

“This ongoing transition to renewables is not just a shift from one set of fuels to another. It involves a much deeper transformation of the world’s energy systems that will have major social, economic and political implications which go well beyond the energy sector.

The global energy transformation will have a particularly pronounced impact on geopolitics. It is one of the undercurrents of change that will help to redraw the geopolitical map of the 21st century. The new geopolitical reality that is taking shape will be fundamentally different from the conventional map of energy geopolitics that has been dominant for more than one hundred years.

The majority of countries can hope to increase their energy independence significantly, and fewer economies will be at risk from vulnerable energy supply lines and volatile prices. Some countries that are heavily dependent on exports of oil, gas or coal will need to adapt to avoid serious economic consequences. Many developing economies will have the possibility to leapfrog fossil fuelbased systems and centralized grids. Renewables will also be a powerful vehicle of democratization because they make it possible to decentralize the energy supply, empowering citizens, local communities, and cities.

“Global power structures and arrangements will change in many ways and the dynamics of relationships within states will also be transformed. Power will become more decentralized and diffused. The influence of some states, such as China, will grow because they have invested heavily in renewable technologies and built up their capacity to take advantage of the opportunities they create.

“By contrast, states that rely heavily on fossil fuel exports and do not adapt to the energy transition will face risks and lose influence.

The supply of energy will no longer be the domain of a small number of states, since the majority of countries will have the potential to achieve energy independence, enhancing their development and security as a result.

“The transition will generate considerable benefits and opportunities. It will strengthen the energy security and energy independence of most countries; promote prosperity and job creation; improve food and water security; and enhance sustainability and equity. Some states will be able to leapfrog technologies based on fossil fuels. The number of energy-related conflicts is likely to fall.

“Countries must prepare for the changes ahead and develop strategies to enhance the prospects of a smooth transition. At the same time, the energy transformation will generate new challenges. Fossil fuel-exporting countries may face instability if they do not reinvent themselves for a new energy age; a rapid shift away from fossil fuels could create a financial shock with significant consequences for the global economy; workers and communities who depend on fossil fuels may be hit adversely; and risks may emerge with regard to cybersecurity and new dependencies on certain minerals.

2020 Vision: why you should see the fossil fuel peak coming

The peak in fossil fuel demand will have a dramatic impact on financial markets in the 2020s. This is one of the major reasons we will see a societal collapse in the 2020s. The transition to renewable energy sources is a minefield of risks, dislocations, and oscillations for investors and nation states.

The global energy system is transitioning from a system mainly based on fossil fuels to one mainly based on renewable energy sources. The shift will involve near-term peaking of fossil fuel demand, an S curve of renewable growth, and the endgame for fossil fuel demand.


The amounts at risk are colossal –
Investors face three types of risk from the energy transition – systemic, country, and stock specific. The systemic risk to investors comes from the fact that the fossil fuel sector has $25 trillion of fixed assets which is increasingly vulnerable to stranding as the energy transition progresses.

Kingsmill Bond

Read full report HERE. View video interview below.

Kingsmill has worked as a sell-side City equity analyst and strategist for over 20 years, including for Deutsche Bank, Troika Dialog and Citibank in London, Hong Kong and Moscow. He has written strategy on emerging markets and global themes, including the wider significance of the shale revolution. He worked for many years in Russia, which is the world’s largest exporter of fossil fuels, and deeply impacted by the transition.
Kingsmill has an MA in History from Cambridge University, trained as an accountant (CIMA), and is a Chartered Financial Analyst (CFA).

Coastal Blue Carbon: Mangroves

In broad terms, “blue carbon” refers to carbon stored, sequestered and cycled through coastal and ocean ecosystems, mainly mangroves, tidal salt marshes, and seagrass meadows. When protected or restored, coastal blue carbon ecosystems act as carbon sinks. When degraded or destroyed, they emit the carbon they have stored into the oceans and atmosphere and become sources of greenhouse gases.

Mangroves are among the oldest and most productive wetland forests on our planet. Found in the intertidal zone, they are uniquely adapted to survive highly saline and anoxic conditions. They are ideal habitats for many terrestrial and marine species, carbon sinks and natural barriers against storm surges and coastal erosion. Mangroves provide invaluable services but have been declining worldwide as a result of anthropogenic and other threats.

It is important to note that the ecosystem services provided by mangroves is not limited to carbon storage and sequestration. They also support improved coastal water quality, provide habitats for a great variety of fish species, and protect coasts against floods and storms. Recent estimates revealed that mangroves are worth at least US$ 1.6 billion each year in ecosystem services.

The following movie, Guardians of our Coast, describes these processes, and includes some extraordinary photography. It showcases the fascinating web of life that surrounds these tidal forests. The movie highlights the unique collaboration between governments, regional and local institutions, NGOs and local communities, in efforts to save these vulnerable ecosystems and restore them to their former glory. Highly recommended.

Interview: Dr. Gina McCarthy

“I want to connect climate and health directly. I want people to know that climate change is a threat to them today. . . A variety of communicable diseases are changing their patterns, in terms of the communities that are exposed, the vectors, and the contaminants related to contagious and infectious diseases.” Read more . . .

Gina McCarthy is Professor of the Practice of Public Health in the Department of Environmental Health at Harvard T.H. Chan School of Public Health and the Director of the Center for Climate, Health, and the Global Environment. In this capacity, she leads the development of the School’s strategy in climate science, health, and sustainability; strengthens the climate science and health curriculum; and liaises with climate science leaders across the University.

Mosquito-spread diseases may endanger millions in new places due to climate change

According to an article published in The Guardian (March 28, 2019), “Half a billion more people could be at risk from mosquito-transmitted diseases within 30 years as a result of the warming climate, according to a new study.

“Canada and parts of northern Europe could be newly exposed to the threat. People there could come into contact with yellow fever, Zika, dengue and chikungunya, as well as other emerging diseases.

“The study, published in the journal PLOS Neglected Tropical Diseases, finds that humans could prevent the spread of disease-carrying mosquitoes if they aggressively take actions to combat global warming.” Read more . . .