Six of the nation’s largest banks have joined in the “Net-Zero Banking Alliance” (NZBA) to “transition all operational and attributable GHG (Green House Gas) emissions from our lending and investment portfolios to align with pathways to net-zero by mid-century, or sooner.”
Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley, and Wells Fargo have created a pact initiated by the United Nation’s policy forcing agriculture producers to a net-zero emissions standard by 2050 or sooner.
These six banks “collectively represent 41% of global banking assets,” states ten Congressional leaders led by Rep. Mary Miller, R-Ill, in a letter sent February 21, 2024.
The NZBA was organized by the United Nations to create a global alliance of financial institutions “committed to financing ambitious climate action” and transition the economy to net-zero GHG emissions by 2050, with the additional goal of “designing, setting, and achieving” science-based net zero targets by 2030 or sooner!
The UN policies, according to the Congressmen’s letter, have led to “record-high food inflation, significant reductions in agricultural production, and an increased need in humanitarian assistance.” “[W]e cannot sacrifice our nation’s food security to the demands of the far-left climate agenda [and] we urge you to trust American farmers to do what is best for their land to produce the food, fuel, and fiber on which our country and world rely.”
The letter continues: “Our nation’s farmers should not be subjected to the political demands of an unelected international organization. Since the 1940s, American farmers, ranchers, and foresters have increased agriculture outputs nearly threefold with little to no change in inputs; this is a significant achievement in on-farm productivity and efficiency.”
The Congressmen asked for responses to four specific questions by Wednesday, March 6, 2024, that include: 1) the extent the NZBA commitment will influence selection and criteria for choosing borrowers; 2) whether they have turned down borrowers due to compliance concerns; 3) how these banks are collecting data from borrowers on greenhouse gas emissions; and 4) did these banks before forming their Alliance interact with the U.S. agriculture industry.
The letter was signed by Representatives Mary Miller, R-Ill, Jerry Carl, R-AL, Ralph Norman, R-SC, Alex Mooney, R-WV, Kelly Armstrong, R-ND, Ronny Jackson, R-TX, Andrew Clyde, R-GA, Barry Moore, R-AL, and Daniel Webster, R-FL.
Read the letter here.
Agriculture Commissioners Agree
On January 29th, a coalition of 12 state agriculture commissioners also criticized the six banks over their net-zero alliance warning their involvement in the global eco-alliance may impact food availability, lead to price increases, limit credit access for farmers and have broad negative economic consequences.
Georgia Agriculture Commissioner Tyler Harper said: “American agriculture is sending a clear signal: we will not bend the knee to the failed, left-wing climate agenda of the United Nations that seeks to cripple one of our country’s most critical industries.”
Harper continued: “The UN’s Net-Zero Banking Alliance would be the equivalent of a run on the bank for our nation’s agriculture industry and pose a serious threat to our national security – and it must be stopped.”
The ag commissioner’s letter warned the NZBA’s framework will force farmers to switch to “inefficient electric farm equipment,” and move them away from the nitrogen fertilizers “necessary for American agriculture to thrive.”
“Achieving net-zero greenhouse gas emissions in agriculture requires a complete overhaul of on-farm infrastructure – one of the goals of the NZBA.”
This would have catastrophic impacts on farming and ranching forcing them to make impractical and costly changes such as “switching to electric machinery and equipment, installing on-site solar panels and wind turbines, moving to organic fertilizer, altering rice-field irrigation systems, and slashing U.S. ruminant meat consumption in half, costing millions of livestock jobs.”
The Net-Zero Bank Alliance is part of the broader environmental, social and governance (ESG) movement that many states are now fighting back against.
The agriculture commissioners, who have broad authority to initiate investigations and bring enforcement actions, have requested information from the banks about their involvement in NZBA and their net-zero goals.
The Ag Commissioners who signed the letter include officials from Georgia, Alabama, Florida, Iowa, Kentucky, Louisiana, Mississippi, North Carolina, North Dakota, South Carolina, Texas and West Virginia.
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