New Jersey Assembly Bill AR142

New Jersey 2022-2023 Regular Session

• Introduced: 5/19/22
• Refer: 5/19/22

Caption

Urges lending institutions in State to stop financing projects that contribute to climate change.

Impact

If passed, this resolution would serve as a symbolic effort to encourage financial institutions to adopt more sustainable lending practices aligned with climate goals. It pushes for a shift away from funding projects that exacerbate environmental harm towards supporting sustainable energy initiatives. This could have a long-term impact on how lending institutions assess their financing portfolios, potentially steering them away from high-emission projects and towards cleaner alternatives.

Summary

Assembly Resolution No. 142 urges lending institutions in New Jersey to cease financing projects that contribute to climate change. The resolution highlights that the exploration and burning of fossil fuels like oil, gas, and coal significantly contribute to greenhouse gas emissions, which in turn lead to rising global temperatures and related catastrophic weather events such as severe storms and flooding. Despite international agreements like the Paris Agreement aimed at reducing emissions, major lending institutions have continuously financed fossil fuel projects to the tune of trillions of dollars over recent years.

Contention

The resolution points to several specific cases of harm associated with fossil fuel financing, including the detrimental effects on indigenous communities in Argentina and the forced relocations in Mozambique caused by extraction projects. These examples underline the social and economic implications of continuing to fund fossil fuel initiatives, creating a moral argument for financial institutions to reevaluate their commitments. While the resolution does not impose binding regulations, it symbolizes the growing pressure on the finance sector to consider environmental consequences in their lending decisions.