Environmental Defense Works With Banks to Push Power Companies to Cut Carbon Emissions and Invest In Alternative Energy

FOR IMMEDIATE RELEASE

Contact:
Dan Cronin: 202-572-3354, [email protected]

(New York – February 4, 2008) Three of the world’s largest financial institutions announced today the formation of The Carbon Principles, climate change related investment guidelines for financial institutions and power companies investing in energy projects in the United States. The Principles commit institutions to take a portfolio approach to energy investments, prioritizing energy efficiency and renewables, and institute a rigorous review process when contemplating investments in coal-fired generation. Citi, JPMorgan Chase and Morgan Stanley developed these principles in consultation with Environmental Defense, the Natural Resources Defense Council, and several major U.S. electric utilities.

“The days of ‘business as usual’ for coal are over,” said Mark Brownstein, Managing Director of Business Partnerships for Environmental Defense. “Leading utilities and financial institutions recognize this, and these principles are a first step in facilitating an honest assessment of electric generation options in light of the obvious and pressing need to substantially reduce national greenhouse gas pollution.”

Under the Principles, power companies looking to build new coal-fired generation will have to produce specific plans to address the carbon dioxide pollution that would be created by their plants. Company-wide carbon caps and carbon capture and storage are among two of several options that must be considered. Costs of carbon reduction or mitigation are to be reflected in project finance decisions.

“Project developers and their investors can no longer claim that carbon dioxide pollution doesn’t matter,” said Brownstein. “These principles are a first and important step in the transition to a lower carbon economy. Doing anything less than what these principles call for simply wouldn’t be prudent.”