John -
We’re getting ready to launch a new campaign – but before we do, we want to directly explain our strategy and what the impacts will be i̵f̵ when we win.
A large part of our strategy to replace the fossil fuel industry is to knock out the fundamental pillars of financial support uplifting coal, oil, and gas companies.
For the last decade, we’ve been calling on public and private investors to cut ties and divest from fossil fuels – and we’ve been incredibly successful. That’s why we’re now turning to the biggest fish in the financial sea, the Federal Reserve System (the Fed).
If this all sounds wonky, you’re not alone. Financial policy is oftentimes made intentionally confusing to avoid public accountability. That’s why we want to explain it to you now.
What is the Federal Reserve Bank?
The Fed is the central bank of the U.S. (in other words, it’s the bank for banks). The Fed supervises the nation's largest banks and provides financial services to the U.S. government. It also promotes the stability of the economy as a whole.
What does the Federal Reserve do?
The Federal Reserve has four functions:
How can the Federal Reserve impact the climate?
There are many things the Fed can do to stop or disrupt the flow of money from large banks to fossil fuel projects. They have the legal authority to set limits for major banks on financing fossil fuels and can make lending to fossil fuel projects more costly.
They also have the power to make funding available to overhaul our energy system and dramatically shift our transportation and buildings infrastructure. We know this will take a massive investment of resources, the likes of which we haven’t seen since President Franklin D. Roosevelt’s New Deal economic reforms in the 1930s.
Historically, the Fed is quick to dump billions into the Wall Street credit markets during moments deemed “emergencies.” Imagine instead if the Fed provided local governments, tribes, and territories access to funds to rebuild our economy and provide millions of good paying, union jobs.
Imagine a Federal Reserve System that worked to build a stable, just, and equitable carbon free economy. It’s possible, John.
Why would they do this?
If the goal of the Fed is to manage “risk” to our economy, there is no greater threat than planetary collapse.
What's next?
Later this year, President Biden will nominate a Federal Reserve Chair to run the Fed starting in 2022. We already launched a campaign calling on President Biden to elect a climate leader to replace the current Chair, Jerome Powell.
But that’s just the beginning. This summer, we’re planning to launch an all-out campaign calling on the Federal Reserve to cut off financing for fossil fuels, and we’re going to need your help.
That’s why we want to make sure you’re informed and to answer any questions you still have. Your responses also will help us determine what resources and information will be most helpful for our movement as we prepare for the campaign launch.
Thank you for joining us. We look forward to reading your responses.
Let’s win this.
Brett Fleishman
Director of Fossil Finance Campaigns
350.org
1 - The Balance
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PO Box 843004, Boston, MA 02284-3004
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350.org is a global movement that fights for a just and equitable world by stopping the fossil fuel industry from continuing to destroy our climate.