New Jersey 2022-2023 Regular Session

New Jersey Senate Bill SR81

Introduced
5/9/22  

Caption

Urges lending institutions in State to stop financing projects that contribute to climate change.

Impact

One of the notable points in the resolution is the acknowledgment that, despite the commitments made under the Paris Agreement, significant funding continues to flow into fossil fuel projects. From 2016 to 2020, the major lending institutions collectively contributed approximately $3.8 trillion to the oil, gas, and coal sectors. The document further mentions specific cases, such as the adverse effects of fracking on the indigenous Mapuche people in Argentina, illustrating how the current practices of financing fossil fuel projects harm local communities and ecosystems.

Summary

Senate Resolution No. 81 urges lending institutions within New Jersey to cease financing projects that contribute to climate change. The resolution highlights the detrimental impacts of fossil fuels, which are responsible for the release of greenhouse gases that lead to increases in global temperatures. This accelerated climate change has resulted in catastrophic environmental consequences, including extreme weather events, severe storms, and extensive flooding. The resolution emphasizes the urgent need for lending entities to recognize their role in combating climate change by altering their financing practices.

Contention

The resolution does not impose legal constraints on lending institutions but serves as an urgent call to action for these organizations to reconsider their investment strategies in light of their environmental impact. The intention is to encourage banks and financial entities to allocate funding towards sustainable energy projects instead. There may be contention from stakeholders in the fossil fuel industry who argue that such a shift could negatively influence the economy and energy sector. Nonetheless, the resolution positions this change as imperative for environmental health and sustainability.

Companion Bills

NJ AR142

Same As Urges lending institutions in State to stop financing projects that contribute to climate change.

Previously Filed As

NJ SR17

Urges lending institutions in State to stop financing projects that contribute to climate change.

NJ S690

Requires four-year public institutions of higher education to require undergraduate students to complete course on climate change.

NJ A3903

Establishes Climate Change Mitigation and Resilience Financing Program in NJ Infrastructure Bank; imposes per-kilowatt hour charge on electric energy consumption to finance climate change mitigation and resilience projects.

NJ SB3123

Sustainable International Financial Institutions Act of 2025

NJ SB1652

Relating To Climate Change.

NJ SB1652

Relating To Climate Change.

NJ S2338

"Climate Superfund Act"; imposes liability on certain fossil fuel companies for certain damages caused by climate change and establishes program in DEP to collect and distribute compensatory payments.

NJ HB5952

Sustainable International Financial Institutions Act of 2025

NJ HB3269

Reorganizing the Board of Banking and Financial Institutions, the Division of Financial Institutions, and the Lending and Credit Rate Board

NJ SB1471

Climate Change Financial Risk Act of 2025

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