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climate emergency
Sorry Stevie Wonder, We Do Need to Blame the Banks Responsible for the LA Fires
The four banks that sponsored the FireAid benefit concert were among the world’s largest fossil fuel industry financiers from 2016—when the Paris climate accord went into effect—through 2023.
Feb 14, 2025
Stevie Wonder was one of more than two dozen superstars who performed at FireAid, a six-hour benefit concert held late last month to raise money for Los Angeles wildfire victims and, according to event organizers, support “long-term initiatives to prevent future fire disasters throughout Southern California.” Viewed by more than 50 million people around the world, the benefit raised more than $100 million.
Before launching into “Love’s in Need of Love Today,” “Superstition,” and “Higher Ground,” Wonder called for unity in the face of the disaster. “In this world today, we have no time for blaming. We have no time for shaming,” he said. “We need to have prayer and come together as a united people of the world.”
Wonder was likely alluding to the thoroughly debunked lies uttered by then-President-elect Donald Trump, who falsely accused then-President Joe Biden, California Gov. Gavin Newsom, and Los Angeles Mayor Karen Bass of mismanaging resources.
If someone on the FireAid stage had remarked how ironic it was that JPMorgan and Goldman Sachs sponsored the event, 50 million people would have heard about the destructive role they are playing, probably for the first time.
Neither Biden, Newsom, nor Bass were at fault, but with all due respect to Mr. Wonder, it is long past time to blame and shame those who are truly responsible for fueling the climate crisis.
One could of course start with Trump, whose first administration rolled back or dismantled nearly 100 environmental safeguards and who—on day one of his new term—ordered federal agencies to begin gutting protections for the air, water, public lands, and the climate. Republican members of Congress, who have amassed 82% of oil and gas companies’ campaign contributions over the last two decades, are also to blame. And then there’s the fossil fuel industry itself, which was aware of the threat its products pose as early as 1954 but publicly denied the science for decades and funded disinformation campaigns to obstruct and delay government climate action.
Other responsible parties, notably banks and insurance companies, are less obvious. Paradoxically, a handful of them were among FireAid’s corporate sponsors, all of which presumably underwrote the concert to demonstrate their bona fides as caring, public-spirited companies. Joining American Express, Kaiser Permanente, and 20 other corporations were four banks—JPMorgan Chase, Goldman Sachs, UBS, and U.S. Bancorp—and a financial services company—Capital Group—whose investments undermine the concert’s goal of preventing future fire disasters. In fact, the tens of billions of dollars they collectively invest in fossil fuel-related companies annually will make fire disasters in Southern California—and everywhere else—more likely to happen.
Climate Change the ‘Main Driver’ of Wildfires
The science is clear, regardless of what Donald Trump may claim. Primarily caused by burning fossil fuels, climate change is the “main driver” of an alarming increase in wildfires in the Western United States over the last four decades, according to the findings of a 2021 study in the Proceedings of the National Academy of Sciences (PNAS) sponsored by the National Oceanic and Atmospheric Administration (NOAA).
“During 1984 to 2000, 1.69 million acres burned over 11 states,” NOAA’s PNAS study press release pointed out. “It doubled in size to [approximately] 3.35 million acres during 2001 to 2018. In 2020, the total annual burned area jumped to 8.8 million acres, more than five times of that in 1984 to 2000.”
“Even though wetter and cooler conditions could offer brief respites,” the press release added, “more intense and frequent wildfires and aridification in the Western states will continue with rising temperatures.”
A study published last November in Science Advances found that temperatures out West have indeed continued to rise since NOAA’s 2021 study, causing drought even when the region experienced normal precipitation due to moisture loss from “evaporative demand,” or atmospheric thirst. Once again, researchers predicted more severe, longer-lasting droughts covering wider areas as temperatures increase.
Just two months after the Science Advances study came out, Los Angeles County was engulfed in flames, prompting a multinational team of scientists at World Weather Attribution to produce a quick analysis. They found that, without a doubt, climate change “increased the likelihood of wildfire disaster in highly exposed Los Angeles area.”
The cost of that disaster was astronomical. A preliminary estimate of damages from the LA wildfires by AccuWeather ranged from $250 billion to $275 billion—more than the losses from the entire 2020 U.S. wildfire season. Other analysts estimate that the wildfires will cost insurers anywhere from $10 billion to $40 billion.
Burning Through Billions
The four banks that sponsored FireAid were among the world’s largest fossil fuel industry financiers from 2016—when the Paris climate accord went into effect—through 2023, according to the most recent “Banking on Climate Chaos” annual report, published by a handful of environmental groups in May 2024.
JPMorgan Chase: Although JPMorgan’s investment of $40.8 billion in fossil fuel, utility, and pipeline companies in 2023 was roughly half (in inflation-adjusted dollars) of what it invested in 2016, it is still the largest underwriter of fossil fuel deals. From 2016 through 2023, the bank—the largest in the United States—invested $430.9 billion (in unadjusted dollars), more than any other bank worldwide. Its top client was ExxonMobil, which received $15 billion, more than twice the $6.48 billion the bank poured into TransCanada Pipelines, its second largest investee.
Besides its relatively paltry donation for LA fire victims, JPMorgan is retreating from international efforts addressing the climate crisis.
Goldman Sachs: Goldman Sachs, which invested $184.9 billion from 2016 through 2023, was the 14th largest investor over that eight-year span. Its two biggest clients were the Saudi Arabian Oil Company ($4.38 billion) and Royal Dutch Shell ($3.2 billion). In 2023, Goldman Sachs invested $8.8 billion and was the fourth largest financier of fracking companies.
UBS: The Swiss-based UBS’s investments in fossil fuel-related companies dropped precipitously in 2023 to $8.8 billion, likely due to the bank’s dramatic profit swings, but between 2016 and 2023, it was the world’s 10th largest funder. Over those eight years, it invested $210.7 billion and was the biggest financier of metallurgic coal companies. UBS’s leading investee was Calpine Corporation, the largest U.S. natural gas and geothermal electricity provider, which received nearly $4 billion. Other top clients included Duke Energy ($3.25 billion); Parsley Energy, a natural gas developer ($3.4 billion); and Buckeye Partners, an oil pipeline company ($3 billion).
U.S. Bancorp:U.S. Bancorp—the fifth-largest U.S. bank—was the 28thlargest financier, investing $97.27 billion over the eight years covered by the “Banking on Climate Chaos” report. Among its top investees were Occidental Petroleum ($2.2 billion) and Devon Energy ($1.9 billion). In 2023, U.S. Bancorp invested $12.77 billion and was the ninth biggest financier of fracking companies. (Besides sponsoring FireAid for an undisclosed sum, the company—which has about 200 branches and 4,000 employees in the Los Angeles area—donated a meager $100,000 to the United Way of Greater Los Angeles to help fire victims.)
Capital Group: The fifth financial institution that sponsored FireAid,Capital Group, is one of the world’s largest asset managers. As of May 2024, it held more than $173 billion in shares and bonds in 162 fossil fuel-related companies, including ExxonMobil, Chevron, and Conoco Phillips, according to the 2024 report “Investing in Climate Chaos,” which did not document investments on an annual basis.
The Energy Transition Could Take ‘Generations’
JPMorgan, by far the worst of the five financial titans sponsoring FireAid, posed as a good corporate citizen by offering LA fire victims mortgage payment relief and donating $2 million to the American Red Cross, California Community Foundation, and United Way of Greater Los Angeles. But that’s chump change for a bank that posted a record $56.8 billion profit last year, a 19% increase from 2023.
Besides its relatively paltry donation for LA fire victims, JPMorgan is retreating from international efforts addressing the climate crisis. Just days before the bank announced its donation, it announced it was leaving the Net-Zero Banking Alliance, a United Nations-sponsored organization of more than 140 banks from 44 countries that have pledged to align their investments and loans with the goal of attaining net-zero carbon emissions by 2050. A year before, in February 2024, JPMorgan quit Climate Action 100+, a $68-trillion investor organization that advocates for reining in world’s largest corporate carbon emitters to reduce financial risk.
JPMorgan says it left CA 100+ because it hired its own climate risk analysts, but it walked away shortly after the investor group began requiring members to broaden their corporate disclosure and implement climate transition plans, according to ESG Dive, a trade journal. The bank did not cite a reason for leaving the Net-Zero Banking Alliance, but news outlets reported that Republican politicians had been pressuring banks to quit even before Trump, a notorious climate science denier, won the election last November.
A JPMorgan spokesperson promised that the bank would “continue to support the banking and investment needs of our clients who are engaged in energy transition and in decarbonizing different sectors of the economy.” And, to its credit, JPMorgan had already pledged to “finance and facilitate more than $2.5 trillion”—including $1 trillion for renewable energy and other “green initiatives”—by 2030 to “help advance long-term climate solutions and contribute to sustainable development.” In 2023 alone, the company invested $300 billion.
But the company remains the top fossil fuel industry financier and will continue to invest, regardless of the consequences. At a September 2022 congressional hearing, JPMorgan CEO Jamie Dimon, who made $34.5 million that year, was unequivocal. When asked if his company has a policy against funding oil and gas projects, he responded: “Absolutely not. That would be the road to hell for America.” More recently, in April 2024, the company issued a report warning that it will take “decades, or generations, not years” to phase out fossil fuels and hit net-zero targets.
Fossil Energy Companies Are ‘Hugely Important’
Goldman Sachs, the sixth largest U.S. bank, announced in December 2019 that it would no longer invest in oil development in the Arctic or in thermal coal mines worldwide, a first for a U.S. bank. It also said it would invest $750 billion in sustainability financing, which includes green energy, by 2030.
Environmental groups cheered, but stressed that the bank had a long way to go to align its investments to meet net-zero goals. It still does.
Like his counterpart at JPMorgan, Goldman Sachs CEO David Solomon rejects calls to sever his bank’s ties to the fossil fuel industry. “Traditional energy companies are hugely important to the global economy they are hugely important to Goldman Sachs,” he said in 2023, when he made $31 million, a 24% jump from the previous year. “We are all going to continue to finance traditional companies for a long time.”
Likewise, Goldman Sachs quit CA100+ (last August) and the Net-Zero Banking Alliance (last December). “We have made significant progress in recent years on the firm’s net-zero goals and we look forward to making further progress, including by expanding to additional sectors in the coming months,” the bank said when it departed the alliance. “Our priorities remain to help our clients achieve their sustainability goals and to measure and report on our progress.”
Name, Blame, and Shame
Last year was the hottest on record, beating out the next warmest year—2023. Meanwhile, the 10 warmest years since 1850 have all occurred over the last 10 years. In 2024, global temperatures exceeded the pre-industrial (1850 to 1900) average by 2.63°F (1.46°C), only slightly less than the Paris climate agreement’s ambitious goal of limiting the worldwide temperature increase to less than 1.5°C above pre-industrial levels to avoid the worst consequences of climate change.
The hotter it gets, the more likely such devastating events as the Los Angeles wildfires and Hurricane Helene will be decidedly worse. More neighborhoods will be wiped out. More people will lose their homes. More will die.
Regardless, the world’s largest banks have failed to keep their pledge to support the central aim of the Paris accord, according to a new report by research firm Bloomberg New Energy Finance. BNEF analysts calculated that the ratio of financing green energy and infrastructure relative to financing fossil fuel-related ventures must reach 4 to 1 by 2030 to keep any temperature rise below 1.5°C. Since 2016, BNEF found, banks have invested nearly $6 trillion in fossil fuels but only $3.8 trillion in green energy. That’s a trifling 0.63 to 1 ratio. For every dollar invested in fossil fuels, only 63 cents went to clean energy.
The banking ratio is only slightly better now. In 2023, it was 0.89 to 1, according to BNEF, a minor improvement over 2022, when it was 0.74 to 1. And for all that JPMorgan crows it invests in “green initiatives,” its energy-supply banking ratio in 2023 was a measly 0.80 to 1, and it is doubtful that the bank will start investing four times more in green enterprises than in fossil fuel companies anytime soon.
Regardless, JPMorgan, Goldman Sachs, and the other financial firms that sponsored FireAid and donated to local nonprofits aiding fire victims want to be seen as good guys. They correctly assume that the general public has no idea that their investments are ruining the planet. After all, the mainstream news media rarely, if ever, report on this topic, and the trade press that does is mainly read by industry insiders.
So no matter how heartfelt, Stevie Wonder—a celebrated humanitarian in his own right—was wrong. We should call out the people and corporations responsible for the climate crisis. If someone on the FireAid stage had remarked how ironic it was that JPMorgan and Goldman Sachs sponsored the event, 50 million people would have heard about the destructive role they are playing, probably for the first time. A column like this one, unfortunately, does not have that kind of reach.
This column was originally posted on Money Trail, a new Substack site co-founded by Elliott Negin.
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Despite Catastrophic Fires, Federal Court in California Dismisses Youth Climate Case
"Wildfires are ravaging these children's communities in California, but the court claims that their suffering is too 'indirect' to matter," said the plaintiffs' lawyer. "This ruling is nothing short of judicial dereliction."
Feb 11, 2025
With Californians still reeling from what is expected to be "the costliest wildfire disaster in American history," a federal judge in the state on Tuesday dismissed a constitutional climate case that young people brought against the U.S. government.
The firm Our Children's Trust filed the equal protection lawsuit on behalf of 18 children in the Central District of California on December 10, 2023. Genesis B. v. United States Environmental Protection Agency initially just targeted the EPA and its administrator, but the plaintiffs later added the Office of Management and Budget and its director as defendants.
Since the beginning of the case, the Biden administration fought for its dismissal. U.S. District Judge Michael Fitzgerald, an appointee of Democratic former President Barack Obama, previously dismissed the case last May but also allowed the youth plaintiffs' lawyers to amend their complaint. The judge dismissed the case again on Tuesday, the first major development since Republican President Donald Trump—a noted enemy of climate action—returned to the White House last month.
"We are fighting not just for ourselves, but for every young person who deserves a world where their lives, their health, and their future matter."
Responding in a Tuesday statement, Our Children's Trust slammed the "extraordinary decision to dismiss the case by disregarding key evidence showing the harmful effects of the EPA's policies and the unique vulnerability of children's bodies to climate pollution," highlighting expert testimony from economist Joseph Stiglitz and Dr. Elizabeth Pinsky, a psychiatrist and pediatrician.
"By dismissing this case, the court is turning a blind eye to the real-world harms youth are enduring right now. Wildfires are ravaging these children's communities in California, but the court claims that their suffering is too 'indirect' to matter," said Julia Olson, chief legal counsel for the plaintiffs.
"This ruling is nothing short of judicial dereliction in the face of a climate emergency," she asserted. "The court refused to consider that the government's devaluation of children isn't just bad policy—it's a violation of fundamental equal rights."
The young plaintiffs also expressed disappointment with Fitzgerald's decision in the wake of January blazes that experts tied to the climate emergency—specifically, the World Weather Attribution found that fossil fuel-driven global warming made the weather conditions that caused the Los Angeles County fires 35% more probable.
"The court's decision to dismiss this case before we could even present our evidence is a gut punch," lead plaintiff Genesis B said Tuesday. "We are living with the consequences of these policies every single day—wildfires, choking smoke, evacuation orders. And now, with the strongest storm of the year set to hit Southern California this week, our case is more urgent than ever."
"Forecasters are warning of widespread flooding, landslides, and dangerous debris flows, especially in areas devastated by wildfires," Genesis B. explained. "We wanted the chance to show the court the science, the economics, and the lived experiences that prove the government's actions are harming us. Instead, we were denied that opportunity. He just shut the door on us, made up his own facts, and never listened to the real experts. He never gave us the opportunity to testify."
The 18 young plaintiffs are not backing down! They remain committed to fighting for their constitutional rights and will continue to pursue all available legal avenues to hold the U.S. government accountable for its actions. Read the PR: bit.ly/GenesisPR0225 #YouthvGov #GenesisvEPA
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— Our Children’s Trust (@youthvgov.bsky.social) February 11, 2025 at 3:45 PM
Despite the setback in court on Tuesday, the young plaintiffs in this case are determined to keep fighting and are now considering potential next steps with their lawyers.
"We are not backing down. This fight is about refusing to let our lives be discounted, and we won't stand by as our future is treated as expendable," declared plaintiff Maya W. "We are fighting not just for ourselves, but for every young person who deserves a world where their lives, their health, and their future matter."
This case is just one of many that young people have pursued in recent years, some of which are ongoing and many that involve Our Children's Trust. The group said that earlier Tuesday, attorneys representing a dozen youth plaintiffs in the constitutional climate case Layla H. v. Virginia presented their case virtually before the state Supreme Court.
In another Our Children's Trust case, Juliana v. United States, 43 members of Congress last month submitted a brief to the U.S. Supreme Court supporting the 21 plaintiffs. That filing came less than a month after the Montana Supreme Court upheld a 2023 decision that the state government's promotion of fossil fuels violates young residents' state constitutional rights. Earlier last year, Hawaii's governor and Department of Transportation announced an "unprecedented" settlement in another youth climate case.
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'Long-Overdue' Trial to Begin After Decades of Shell Polluting Nigeria
"The spills have terribly affected the Bille community," said one Nigerian plaintiff. "Our ecosystems are dead. Our livelihood depends on fishing."
Feb 10, 2025
After years of delay tactics, Shell is set to go on trial in London this week over claims that hundreds of spills caused by the fossil fuel giant have destroyed Nigerian communities and violated their residents' rights to a clean and healthy environment.
Critics say Shell has managed to avoid accountability for despoiling the environment in and around Bille and Ogale communities in the Niger Delta. Ten years ago, residents of these communities sued Shell, claiming inhabitants' livelihoods, homes, and environment had been devastated by Shell oil spills, which killed fish and vegetation and left thousands of people without access to clean drinking water.
As Bille and Ogale communities attempted to fight London-based Shell in U.K. courts, the company repeatedly delayed the case, claiming it was not legally liable for the pollution caused by its subsidiary, the Shell Petroleum Development Company of Nigeria. However, in 2021 the U.K. Supreme Court ruled that the High Court should hear the case, and last December, the country's Court of Appeals allowed it to be heard.
"The Bille and Ogale communities of Nigeria's Niger Delta oil-producing region have been living with the devastating impact of oil pollution for so long," Amnesty International Nigeria director Isa Sanusi said in a statement Monday. "Oil companies, particularly Shell, exposed them to multiple oil spills that have done permanent damage to farmlands, waterways, and drinking water—leaving them unable to farm or fish."
Ten years ago, residents from the Bille and Ogale communities in Nigeria claimed their livelihoods had been destroyed by hundreds of oil spills caused by Shell. The pollution caused widespread devastation to the local environment and left thousands without access to clean drinking water.
— Amnesty International (@amnesty.org) February 10, 2025 at 4:00 AM
"Water contamination and other impacts affect even babies that are in some cases born with deformities," Sanusi added. "These communities have been deprived of a good standard of living. They deserve justice and effective remediation, and I hope this long-overdue trial goes someway to providing it."
In 2023, the U.K. Supreme Court ruled in a separate but related case that it was too late for Nigerian plaintiffs to sue a pair of Shell subsidiaries over a 2011 spill of an estimated 40,000 barrels of oil.
Amnesty International has called the Niger Delta "one of the most polluted places on Earth."
Accountability has been rare, but in 2021 Shell agreed to pay $111 million for oil spills in the Niger Delta. This, in a year in which the company reported adjusted 2020 earnings of nearly $5 billion.
Last December, Nigeria's Ministry of Petroleum Resources approved Shell's sale of $2.4 billion in offshore and shallow-water assets to Renaissance Group, a Nigerian firm, marking the end of nearly a century of Shell's operations in the African nation. The Nigerian government is also currently in talks with local communities about resuming oil production in Ogoniland, which has been devastated by spills over the past half-century.
Responding to the U.K. Court of Appeals' greenlighting of the case set to be heard later this week, Bille Chief Bennett Okpoki said in December that "this has taken a very long time as Shell has been delaying for around 10 years."
"The spills have terribly affected the Bille community," he continued. "Our ecosystems are dead. Our livelihood depends on fishing. After the oil spills, we have found it very difficult to survive and people are not finding it easy. We hope it continues, so we can have a final victory over Shell, at least for them to come and do the cleanup, to put us in the place we were before."
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