In November, MMA co-filed a shareholder resolution with Bank of America (BAC) which calls for a moratorium on the financing of new coal-fired power plants and mountain top removal projects. BAC has sinced challenged the validity of the resolution at the Securities and Exchange Commission (SEC), and both sides are currently submitting arguments. MMA, along with several other investor groups, began direct dialogue with the company in January, and talks continue.

BAC has established itself as one of the most “green” financial institutions, committing to increased energy efficiency and emissions reduction in its facilities. It has also taken the bold step of setting greenhouse gas (GHG) reduction goals for the projects it funds in its loan portfolio – the first bank to do so. As a socially concerned shareholder, MMA applauds BAC’s initiatives. However, continued financing of coal projects seems to contradict its own stated environmental goals. MMA hopes to encourage BAC to better align its policies with its goals.

Ultimately, the goal is to reduce GHG emissions, which contribute to climate change. Coal-fired power plants are the single largest source of GHG emissions in the nation, and many more plants are in the works. Mountain top removal mining is increasingly practiced by coal companies in Appalachia, resulting in ruined watersheds, mudslides, and devastated communities. Banks play a pivotal role in financing energy generation, and if they begin to phase out their support of fossil fuel projects and support clean energy instead, it can make a big difference in reducing overall GHG emissions.

This entry was posted on Friday, February 29th, 2008 at 1:54 pm and is filed under MMA, Environment, Chris. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.