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Market News

 October 01, 2007
RAN Targets Citi and BofA for Financing Coal Industry

 Oakland, California -- An environmental group called on Citi and Bank of America Tuesday to stop lending billions to the coal industry and instead invest in clean energy projects.

The Rainforest Action Network (RAN) labeled the two financial giants the "world's top financiers of dirty energy and climate change" despite the billions of dollars the two companies are spending to address global warming.

Citigroup will devote $50 billion during the next decade toward climate change action while Bank of America will pump $20 billion into green business.

Citi, however, was 2006's top coal underwriter while Bank of America is also "deeply invested in the coal industry, financing companies that extract coal through the devastating practice of mountaintop removal coal mining," RAN said in a statement.

"Bank of America and Citi have the power and the responsibility to stop the imminent climate catastrophe," said Rebecca Tarbotton, director of RAN's Global Finance Campaign. "Rather than taking baby steps on climate change, these banks need to treat this crisis with the urgency they usually reserve for their fiscal bottom line and immediately shift their investments away from coal and toward a clean energy future."

Coal is responsible of about half of U.S. electricity generation but is a leading cause of U.S. emissions. RAN predicted that more than $140 billion will be spent on 150 new coal-fired power plants.