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http://www.alternet.org/envirohealth/47615/Who's Funding Global Warming?
By Tara Lohan, AlterNet. Posted February 5, 2007.
Wearing hats shaped like smokestacks and carrying signs that said, "Coal Investments Cook the Climate," a group known as Billionaires for Coal raised awareness last week about the plans by TXU, a Dallas-based utility company, to build 11-new pulverized coal-fired power plants in Texas.
The activists delivered suitcases of coal, but the recipient of their gift was not TXU and they were a long way from Texas. Instead, their action took place in New York's financial district where they visited the headquarters of Merrill Lynch -- a company that is putting coal and profits above human health and climate change.
Merrill Lynch is one of three major financial institutions, along with Morgan Stanley and Citigroup, that have agreed to arrange the needed $11 billion to finance TXU's plants.
It is widely known among scientists and regulators that coal-fired power plants are the most polluting form of electricity and right now, the world needs every opportunity it can to move away from the production of more greenhouse gas (GHG) emissions.
Some say the impetus is on the government to regulate GHG emissions; others put the responsibility on utility companies. But organizations like Rainforest Action Network (RAN) believe that banks that fund polluting projects like TXU also need to be held accountable.
The recent action by Billionaires for Coal in New York begs the question: What is the role of the global finance industry when it comes to climate change? It also highlights the ripple effect of global warming -- more coal plants in Texas will be everyone's problem -- including Wall Street's.
Banking on dirty money
If TXU secures the necessary money and permits, their 11 plants will produce 78 million tons of CO2 emissions each year for the expected 50-year lifespan of the plants.
Let's put that number in perspective. According to Environmental Defense, TXU's projected output of 78 million tons of CO2 a year is more than entire countries, such as Sweden, Denmark, and Portugal. It is also the equivalent of putting 10 million Cadillac Escalades on the road or cutting and burning all the trees in a section of the Amazon the size of over 9 million football fields -- larger than the state of California.
"This is the U.S. and its insanity at its very greatest. We are facing a climate crisis," said Brianna Cayo Cotter of RAN. "We are standing at the edge of a cliff and this is the sort of project that just pushes us over."
TXU seems to be striving to become known as the largest corporate greenhouse gas emitter in the U.S. With mounting political pressure in the United States and growing international action, what kinds of institutions want to be associated with them?
So far, the only three officially committed to the project are Citigroup, Merrill Lynch, and Morgan Stanley, and they are known as "lead arrangers," in charge of helping TXU get the $11 billion in financing.
RAN has sent letters to 56 global banks -- across the United States, Canada, Europe, and even in Japan and Brazil -- urging banks to reject requests to finance the project.
In the Netherlands four banks were being approached for financing despite the fact that TXU's project will produce six times the pledged CO2 reductions of their country -- negating the efforts (six times over) of the Dutch people to limit their contributions to climate change.More at the link...
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