Antinuclear

JP Morgan Chase is the world’s leading financer of fossil fuel projects. And according to a report from within the company, recently leaked to the press, the world is seriously underestimating the adverse effects of climate change.

The 22-page report, entitled “Risky Business: the climate and the macroeconomy” and dated January 14, 2020, has been reported by multiple outlets since Friday as containing a gloomy assessment of the risk presented by climate change in the near future. But it also offers a withering takedown of how economists in particular have tended to think about the climate crisis, criticizing findings from several of the field’s experts by name, including a recent winner of the Nobel Prize in economics.

“We cannot rule out catastrophic outcomes where human life as we know it is threatened,” the report concludes. It’s a stunning bit of cognitive dissonance from a bank that is doing so much to fuel the crisis. It also shows a growing push for a more grounded assessment of the crisis than mainstream economics has offered in recent decades….

Essentially an informational document, the report—written by U.K.-based JP Morgan economists David Mackie and Jessica Murray—reviews a battery of academic literature on climate change. It examines several predictions of climate change’s impact on gross domestic product, including economist Richard Tol’s 2018 survey of 26 different climate models—one of the more comprehensive recent works. While Tol has links to organizations that have cast doubt on the scientific consensus around the climate crisis, as his own research has, the findings listed are not especially controversial. But the JP Morgan Chase report authors push back on those and other prominent predictions. “Most likely,” the authors conclude, “these estimates of the income and wealth effects of unmitigated climate change are far too small.”……..

The JP Morgan report doesn’t include clear recommendations for what the company’s own risk analysts should do with the information presented. “Most likely,” it states, “business as usual will be the path that policymakers follow in the years ahead”—something its authors say “opens the earth to a greater likelihood of a catastrophic outcome” than previously estimated. The report does not discuss the bank’s support for polluting industries, which have spent handsomely to block climate action at virtually every level of government.

“It is depressing that JP Morgan are trying to evade responsibility for this thorough and useful report that restates what climate scientists, Greta Thunberg, and Extinction Rebellion alike have been saying for some time now: that our very future as a species is at stake,” Rupert Read, who originally obtained the report, wrote in an email. “It would be so much better if they owned up fully to what is in this report. But then, that would of course require them to completely transform their business model.”

All that dissonance may be starting to wear thin. Ahead of its annual investor day Tuesday and under persistent pressure from Gwich’in Steering Committee and green groups, JP Morgan Chase said it would stop any new financing of drilling in the Arctic National Wildlife Refuge and expand restrictions on financing coal projects. https://newrepublic.com/article/156657/planet-screwed-says-bank-screwed-planet