Citigroup commits $50 billion to fight global warming
Citigroup commits $50 billion to fight global warming
mongabay.com
May 13, 2007
Citigroup said last week that it plans to spend $50 billion towards mitigating climate change, mostly through investments in clean energy and “alternative technology” over the next 10 years.
The amount includes nearly $10 billion in activities the largest U.S. bank has already undertaken.
“The comprehensive program we are announcing today is not a wish-list, but a realistic, achievable plan that serves a critical global need and responds to an emerging investment opportunity,” said Charles Prince, Chairman and CEO of Citi, in a statement Tuesday. “The comprehensive program we are announcing today is not a wish-list, but a realistic, achievable plan that serves a critical global need and responds to an emerging investment opportunity.”
Citigroup is one of many firms calling for federal caps on greenhouse gas emissions. The bank is a member of the U.S. Climate Action Partnership (USCAP), a coalition of corporations seeking to influence future climate policy.
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Citigroup’s announcement is likely to be the first of many as companies position themselves for the opportunities presented by action on climate change.
Earlier this month the Intergovernmental Panel on Climate Change (IPCC) released its long awaiting installment on climate change mitigation, arguing that the costs of offsetting global warming will be much lower than some claim. The IPCC estimates that emissions can be reduced rapidly using existing technology at a cost of 3 percent of GDP, or 0.12 percent per year over the next 25 years, though new technologies could further reduce this cost. While the projections are encouraging, they may be conservative. Some analysts, including the well-respected Amory Lovins of the Rocky Mountain Institute, have calculated that emissions targets that would stabilize the climate could be achieved at no net cost and possibly even a profit. Even McKinsey & Company, a leading management consulting firm, agrees, putting the net cost of reducing emissions by 46 percent at zero.
