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Banks must disclose and reduce fossil fuel financing

This act requires large banks to disclose the extent to which they finance fossil fuel and deforestation projects. It mandates them to submit plans to reduce these emissions to zero by 2050, with specific interim targets. The goal is to reduce the financial sector's impact on climate change.
Key points
Large banks will have to disclose how much greenhouse gas emissions are linked to their investments and loans.
Banks will be required to create and implement plans to reduce fossil fuel and deforestation financing, aiming for zero emissions by 2050.
The act prohibits financing new fossil fuel projects from 2023 and all fossil fuel financing from 2030.
Non-compliant banks may face penalties, including forced asset sales or loss of deposit insurance.
The act considers the need for a just transition for workers and communities dependent on the fossil fuel industry.
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Expired
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Additional Information
Print number: 117_HR_5253
Sponsor: Rep. Jones, Mondaire [D-NY-17]
Process start date: 2021-09-14
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Summarized by: gemini-2.5-flash-preview-04-17
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Fossil Free Finance Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_HR_5253.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2021-09-14.

What are the main provisions?

Key points include:

  • Large banks will have to disclose how much greenhouse gas emissions are linked to their investments and loans.
  • Banks will be required to create and implement plans to reduce fossil fuel and deforestation financing, aiming for zero emissions by 2050.
  • The act prohibits financing new fossil fuel projects from 2023 and all fossil fuel financing from 2030.
  • Non-compliant banks may face penalties, including forced asset sales or loss of deposit insurance.
  • The act considers the need for a just transition for workers and communities dependent on the fossil fuel industry.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Jones, Mondaire [D-NY-17].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Financial Services.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-28.

CATEGORIES

Economy Environment