At-a-Glance:
As the world’s largest financial institutions jockey for leadership positions in financing the transition to a clean economy, JPMorgan Chase is creating a team dedicated to building deeper relationships with companies that sell “environmentally-friendly” products and services or that focus on environmental conservation. To learn more, read “JPMorgan Chase wants to be the commercial bank for ‘green economy’ companies.”
Key Takeaways:
- The new Green Economy team is explicitly tasked with providing services for companies — notably private entities in need of capital — that are poised to benefit from the transition.
- The group will initially be focused on four sectors — renewable energy, efficiency solutions, agriculture and food technology, and sustainable financial firms that provide capital or project finance.
- While many renewable energy companies are mature, many are just getting started and they will need capital and advice to innovate and evolve efficiently in a changing world.
Path to 100% Perspective:
Since March 2020, policy makers worldwide have made decisions that will shape the energy sector for decades. Enormous recovery stimulus packages have been announced to support industries and communities to get back onto their feet, with hundreds of billions of dollars allocated to the energy sector alone. Investment firms such as JPMorgan Chase have identified the need to invest in decarbonization innovation. These investment decisions are designed to counteract the financial shocks of the pandemic, but they will also determine whether the world meets its long-term energy and climate goals.