US Banks Exiting Net-Zero Banking Alliance – Latest Updates

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American banks have been making headlines recently with their involvement in the Net-Zero Banking Alliance. This initiative aims to reduce coal production in the US, but it seems like the profits of coal producers and bankers are skyrocketing, much to the dismay of consumers. The Texas attorney general, Ken Paxton, is not happy about it and is standing up against this UN initiative.

A number of American banks, including big names like Morgan Stanley, Citigroup, and Bank of America, have decided to pull out of the Net-Zero Banking Alliance. This move comes after complaints of market manipulation were filed by 11 American states, with Texas leading the charge. The 109-page complaint gives us a closer look at the banks’ strategies and the impact they are having.

As it stands now, only four US banks are still part of the Net-Zero Banking Alliance. Meanwhile, in Luxembourg, Spuerkeess remains the sole member. Banks like Amalgamated Bank, Areti Bank, Climate First Bank, and JP Morgan Chase are the current participants. Others like Blackrock, Vanguard, and Wells Fargo have already bowed out.

The Texas attorney general and 10 other states have accused asset managers of manipulating the market for coal through anticompetitive practices. This has led to a decrease in coal production by 11.7% to 28.7% for different coal producers, while profits have seen a significant increase. For example, Peabody Energy’s profits shot up by a whopping 854%.

The Net-Zero Banking Alliance focuses on reducing emissions in the banking sector, but it seems like achieving this goal is not straightforward. The alliance’s guidelines highlight the challenges that banks face in obtaining accurate data to measure the impact of their initiatives. Stay tuned for more updates on how this situation unfolds.

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