05/19/2007 12:00:00 PM 
Recent commitments to green initiatives by the financial sector are creating talk that energy will be a bigger business revolution than the Internet. It’s easy to understand why with the kind of money we’ve recently seen flowing from big banks. MSNBC reported that Citibank pledged $50 billion to curb emissions and plans to invest $31 billion in clean energy and alternative energy over the next 10 years. This announcement was followed by a $20 billion commitment to support growth in environmentally friendly activities to reduce global warming by Bank of America. Clinton recently spoke about supporting initiatives with a plan for 5 major banks to fund green initiatives by creating financing solutions that will facilitate the construction of green buildings.
European initiatives include a recent commitment of 378 million Euros by a group of banks for the financing of the first ever offshore wind farm that will power 125,000 homes. These are the kind of projects that banks will start investing in in the future.
These programs are step one of a two-part initiative which also requires the weening off of dirty energy. What this means for financial institutions as well as investors is a careful balancing act that would eventually mean less financing of coal-fired power plants and other emissions emitting energy sources.
Financial institutions are looking to adopt new green programs that are becoming increasingly attractive to their consumers. Wells Fargo just added eco-friendly choices for it’s reward card holders and BAC and Citi plan to follow. This will let consumers accumulate green points that can be used to benefit clean energy projects.
These initiatives are important to consumers, a LOHAS poll revealed that:
- 68% state that knowing a company is mindful of its impact on the environment and society makes them more likely to buy their products and services,
- 52% state that it makes them more likely to buy stock.
Corporate boardrooms are taking note and the implications will be far reaching.
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