Hill Heat: Investment Banks Set Coal Plant Carbon GuidelinesScience Policy Legislation Actiontag:www.hillheat.com,2005:TypoTypo2008-02-06T15:28:04-05:00Brad Johnsonurn:uuid:8c93bb29-8659-4be3-967f-42735b67170d2008-02-06T15:18:00-05:002008-02-06T15:28:04-05:00Investment Banks Set Coal Plant Carbon Guidelines<p>On Monday Citi Group, Morgan Stanley, and JPMorgan Chase <a href="http://www.citigroup.com/citigroup/press/2008/080204a.htm">announced</a> the establishment of an “enhanced diligence” framework for judging proposed financings of certain new fossil fuel generation.</p>
<p>The framework, according to the <a href="http://www.citigroup.com/citigroup/press/2008/080204a.htm">joint press release</a>, sets principles for energy efficiency (including “regulatory and legislative changes that increase efficiency in electricity consumption”), renewable energy and low-carbon distributed energy technologies, and assessing the “financial, regulatory and certain environmental liability risks” of <span class="caps">CO2</span>-emitting fossil fuel power generation. The group intends to “encourage regulatory and legislative changes that facilitate carbon capture and storage (CCS) to further reduce <span class="caps">CO2</span> emissions from the electric sector.”</p>
<p>The group, which as the Rainforest Action Network’s Understory blog <a href="http://understory.ran.org/2008/02/04/wall-street-announces-carbon-principles-but-what-do-they-mean/">notes</a> does not include major investor Bank of America, consulted the power companies American Electric Power, <span class="caps">CMS</span> Energy, <span class="caps">DTE</span> Energy, <span class="caps">NRG</span> Energy, <span class="caps">PSEG</span>, Sempra and Southern Company and the environmental organizations Environmental Defense and the Natural Resources Defense Council.</p><p>On Monday Citi Group, Morgan Stanley, and JPMorgan Chase <a href="http://www.citigroup.com/citigroup/press/2008/080204a.htm">announced</a> the establishment of an “enhanced diligence” framework for judging proposed financings of certain new fossil fuel generation.</p>
<p>The framework, according to the <a href="http://www.citigroup.com/citigroup/press/2008/080204a.htm">joint press release</a>, sets principles for energy efficiency (including “regulatory and legislative changes that increase efficiency in electricity consumption”), renewable energy and low-carbon distributed energy technologies, and assessing the “financial, regulatory and certain environmental liability risks” of <span class="caps">CO2</span>-emitting fossil fuel power generation. The group intends to “encourage regulatory and legislative changes that facilitate carbon capture and storage (CCS) to further reduce <span class="caps">CO2</span> emissions from the electric sector.”</p>
<p>The group, which as the Rainforest Action Network’s Understory blog <a href="http://understory.ran.org/2008/02/04/wall-street-announces-carbon-principles-but-what-do-they-mean/">notes</a> does not include major investor Bank of America, consulted the power companies American Electric Power, <span class="caps">CMS</span> Energy, <span class="caps">DTE</span> Energy, <span class="caps">NRG</span> Energy, <span class="caps">PSEG</span>, Sempra and Southern Company and the environmental organizations Environmental Defense and the Natural Resources Defense Council.</p>