JPMorgan commits $200bn to clean energy

The US bank is calling the sum the ‘largest commitment by a global financial institution’.

JPMorgan Chase is fully embracing clean energy, promising to help finance $200 billion in projects and power its operations with renewable sources within a decade.

The banking giant said it will help overall renewables deployment around the world by facilitating billions of dollars’ worth of transactions by 2025 through what it calls “the largest commitment [of its kind] by a global financial institution”. JPMorgan said it would advise on the largest clean energy deals and capital raises, see projects through development with financing and risk management support and underwrite debt for municipal and corporate green bonds.

JPMorgan currently serves as bookrunner for Apple’s $1 billion green bond offering. In 2016, the bank provided nearly $2 billion in tax equity for wind, solar and geothermal projects, and advised on Dong Energy’s initial public offering and Brookfield Asset Management’s bid to acquire SunEdison yieldcos TerraForm Power and TerraForm Global.

“Business must play a leadership role in creating solutions that protect the environment and grow the economy,” said Jamie Dimon, chairman of JPMorgan.

In addition to project finance, JPMorgan said it would join other large US corporations with a goal to use 100 percent renewable energy to power its global operations by 2020.

By then, the firm plans to run its 75 million square feet of property spread over 5,500 locations in more than 60 countries on renewable power. This will partly be accomplished through a previously announced partnership with General Electric energy efficiency start-up Current, according to a statement.

The bank said it will sign more power-purchase agreements to run its operations, such as the 20-year deal it agreed last year to buy power produced by a 100MW NRG Energy wind project in Texas. This project will cover around 75 percent of the bank’s power consumption in Texas and 13 percent of its total US usage.

JPMorgan’s move to full renewables generation comes as more US businesses see cost savings in the inexpensive power source, as well as pressure from stakeholders to be environmentally friendly.

Other US banks including Morgan Stanley and Goldman Sachs have agreed to start power operations with renewables, while tech companies such as Apple, Google and Amazon have been vocal about their use of clean energy sources.