Activists Are Missing a Huge Source of Capital Driving Emissions

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Climate activists have a $22 trillion blind spot when it comes to putting pressure on investors. Yes, there are loud — and sometimes quite effective — campaigns for divestment from high-emission companies. There are also renegade shareholders who force corporate polluters to change their ways. So far, though, there’s almost no climate accountability in the enormous market for corporate debt.

“Debt finance, largely bank loans and bond issuances, accounts for 90% of new capital for fossil-fuel companies,” said Lily Tomson, senior research associate at Jesus College in Cambridge University. ...