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Fossil Free Financing Act: New Rules for Banks and Climate

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 plans to reduce emissions from their investments, potentially affecting credit availability for certain economic sectors and accelerating the transition to greener solutions.
Key points
Large banks (assets over $50 billion) must submit plans to reduce emissions from their financing activities.
Banks are required to stop financing new fossil fuel projects by January 1, 2023 (retroactive), and fully divest from all fossil fuel financing by January 1, 2030.
The act prohibits banks from financing activities that contribute to deforestation.
Non-compliance can lead to financial penalties, forced asset divestiture, and even loss of deposit insurance for banks.
The act mandates reporting on financed emissions and analysis of the impact of transitioning to a fossil-free economy on workers and communities.
article Official text account_balance Process page
Expired
Citizen Poll
No votes cast
Additional Information
Print number: 118_HR_2443
Sponsor: Rep. Pressley, Ayanna [D-MA-7]
Process start date: 2023-03-30
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Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
AI work logs for this document launch

OFFICIAL LEGAL TITLE

Fossil Free Financing Act of 2023

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_2443.

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 2023-03-30.

What are the main provisions?

Key points include:

  • Large banks (assets over $50 billion) must submit plans to reduce emissions from their financing activities.
  • Banks are required to stop financing new fossil fuel projects by January 1, 2023 (retroactive), and fully divest from all fossil fuel financing by January 1, 2030.
  • The act prohibits banks from financing activities that contribute to deforestation.
  • Non-compliance can lead to financial penalties, forced asset divestiture, and even loss of deposit insurance for banks.
  • The act mandates reporting on financed emissions and analysis of the impact of transitioning to a fossil-free economy on workers and communities.
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. Pressley, Ayanna [D-MA-7].

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 2025-12-24.

CATEGORIES

Environment Economy Public Investments