Jamie Dimon, CEO of JPMorgan, has proposed that governments should seize private land to construct wind and solar farms.
Dimon, who donates to the Democratic Party, believes that urgent action is necessary to fast-track green energy initiatives. He claims the time is running out to prevent the most damaging consequences of climate change, Telegraph reported.
JPMorgan CEO suggests governments should seize private land for wind and solar farms
Dimon shared in his annual shareholder letter: “Permitting reforms are desperately needed to allow investment to be done in any kind of timely way.
“We may even need to evoke eminent domain. We simply are not getting the adequate investments fast enough for grid, solar, wind and pipeline initiatives.”
The suggestion made by Dimon is a rare proposal coming from a prominent Wall Street banker.
Some US states are restricting the use of the eminent domain. It is the legal process by which state authorities can force private property owners to sell their assets for public use, with compensation provided.
The suggestion by the CEO may stir controversy, especially coming from a Wall Street bank CEO.
Additionally, Dimon also commented that the conflict in Ukraine is prompting nations and corporations to reconsider their approach to energy security planning.
Dimon urges prompt action to provide affordable and reliable energy
The CEO added that affordable and reliable energy is needed both now and in the future. Furthermore, investments are required to reduce carbon emissions. And these actions are linked to economic growth, energy security, and climate change.
“To expedite progress, governments, businesses and non-governmental organisations need to align across a series of practical policy changes that comprehensively address fundamental issues that are holding us back,” he added.
“Massive global investment in clean energy technologies must be done and must continue to grow year-over-year.”
Insurers and pension funds in the UK had expressed their dissatisfaction with the EU-era regulations under the Solvency 2 rules. This has limited their capacity to invest in infrastructure, including renewable energy projects.
However, recent reforms to Solvency 2 rules are predicted to stimulate an increase in investment in renewable energy projects in the UK.
The Wall Street titan told JP Morgan’s investors in the bank’s annual report: “Massive global investment in clean energy technologies must be done and must continue to grow year-over-year.
“At the same time, permitting reforms are desperately needed to allow investment to be done in any kind of timely way. We may even need to evoke eminent domain – we simply are not getting the adequate investments fast enough for grid, solar, wind and pipeline initiatives.”
‘Eminent domain’ is the right invoked by governments to take over assets for overriding public priorities, with due compensation to their owners.
Dimon’s call reflects a growing clamour around permitting of green power projects as a top-tier barrier to energy transition progress alongside other key hurdles such as grid infrastructure.
While Dimon's comments are likely to find sympathy among some in the clean energy community, JP Morgan Chase is not immune from criticism over its own climate record.
US activist coalition Stop the Money Pipeline in January applauded the filing of shareholder resolutions at the bank and other major US institutions over their role in financing fossil projects.
Michael Esealuka, Louisiana organiser with campaign group Healthy Gulf, said: "Every year we face worsening hurricanes, freezes and floods. Big banks are directly fueling this crisis by financing a massive expansion of petrochemical plants and gas exports in our communities.
"Bank CEOs like Brian Moynihan, David Solomon and Jamie Dimon made climate commitments — that should mean something. Instead they profit off climate chaos as the Gulf South is made into a sacrifice zone for fossil fuels."
Mr Dimon said: “Polarisation, paralysis and basic lack of analysis cannot keep us from addressing one of the most complex challenges of our time. Diverse stakeholders need to come together, seeking the best answers through engagement around our common interest.
“Bolstering growth must go hand in hand with both securing an energy future and meeting science-based climate targets for future generations.”
The banking chief also hit out against regulators in the wake of the banking crisis last month triggered by the collapse of Silicon Valley Bank (SVB).
He said the collapse of SVB and the government-engineered takeover of Credit Suisse by its biggest rival risked undermining confidence in the sector. He added: “Ironically, banks were incented to own very safe government securities because they were considered highly liquid by regulators and carried very low capital requirements.”
Mr Dimon also warned regulators against tightening rules for lenders following the recent market turmoil.
He said: “It is extremely important that we avoid knee-jerk, whack-a-mole or politically motivated responses that often result in achieving the opposite of what people intended.
“Now is the time to deeply think through and coordinate complex regulations to accomplish the goals we want, eliminating costly inefficiencies and contradictory policies.
“Very often, rules are put in place in one part of the framework without appreciating their consequences in combination with other regulations.”
No comments:
Post a Comment