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Banks: Ending Fossil Fuel and Deforestation Financing by 2030

This act aims to compel large banks to gradually withdraw from financing fossil fuel and deforestation-related projects. This means banks will need to submit emission reduction plans, which could affect credit availability for certain industries and promote investments in greener solutions. The goal is to protect the environment and the nation's financial stability.
Key points
Large banks (assets over $50 billion) must submit plans to reach zero financed emissions by 2050.
Banks must stop financing new fossil fuel projects by 2023 and completely cease fossil fuel financing by 2030.
Withdrawal of financing from projects contributing to deforestation.
Carbon offsets cannot be used to meet emission reduction targets.
Penalties for non-submission or non-compliance with plans, including asset divestiture and potential loss of deposit insurance.
Impact on supervisory decisions for financial companies, considering their contribution to emissions.
Reports to Congress on emission reduction progress and economic/worker impacts.
article Official text account_balance Process page
Expired
Citizen Poll
No votes cast
Additional Information
Print number: 117_S_3167
Sponsor: Sen. Markey, Edward J. [D-MA]
Process start date: 2021-11-04
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Summarized by: gemini-2.5-flash-preview-05-20
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_S_3167.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2021-11-04.

What are the main provisions?

Key points include:

  • Large banks (assets over $50 billion) must submit plans to reach zero financed emissions by 2050.
  • Banks must stop financing new fossil fuel projects by 2023 and completely cease fossil fuel financing by 2030.
  • Withdrawal of financing from projects contributing to deforestation.
  • Carbon offsets cannot be used to meet emission reduction targets.
  • Penalties for non-submission or non-compliance with plans, including asset divestiture and potential loss of deposit insurance.
  • Impact on supervisory decisions for financial companies, considering their contribution to emissions.
  • Reports to Congress on emission reduction progress and economic/worker impacts.
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 Sen. Markey, Edward J. [D-MA].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-29.

CATEGORIES

Economy Environment