ENVIRONMENTALISTS have a new, unlikely ally in the fight against global warming.
A document signed on Monday by three of Wall Street鈥檚 largest banks 鈥� Citigroup, JPMorgan Chase and Morgan Stanley 鈥� requires anyone seeking money for new fossil-fuel power plants in the US to consider the effect this will have on the global climate.
The document, entitled The Carbon Principles, states that power companies that want to build new plants will be asked to consider renewable alternatives and carbon-trading schemes. Even if legal emission limits are not yet in place, the document requires power firms to consider future legislative changes and budget accordingly.
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Borrowers will also have to analyse the potential of carbon capture schemes (see opposite), such as locking away carbon dioxide in disused oil reservoirs. In the US, the principles are likely to have the greatest impact on new coal-fired plants, some of which are already being disrupted by environmental objections.
鈥淏orrowers for new fossil-fuel power plants will be asked to consider renewable sources鈥�
Climate Change 鈥� Want to know more about global warming: the science, impacts and political debate? Visit our continually updated special report.
